If you’re married or in a long-term committed relationship, you might be inclined to buy a house together. In this case, you’re wondering if you can get a couple’s mortgage. Instead of a standard mortgage loan for one person, you want one that’s connected to the two of you.
Is this possible – and if so, what else do you need to know?
Yes, you can get a mortgage as a couple
Couple’s mortgages are available in the US, though they are technically called joint mortgages. You and your partner are able to bundle your funds together to apply for a home loan. You will both be responsible for the loan and paying it back.
How does it work?
In essence, a joint mortgage works the same as any other mortgage loan. The only difference is that both you and your partner will need to apply together. As a result, each of you is considered for this loan, meaning both need to meet the requirements.
This will mean you both have to be aware of the following:
- Your credit score
- Your debt-to-income ratio
- Your personal income
Both people need to tick all the necessary boxes or a joint mortgage will not be handed out.
Is a joint mortgage a good idea?
Mortgage loans for couples are fantastic if you are in a long-term relationship and see a future with one another. Applying for a home loan with two people means both of your finances are looked at, so you can combine them together to apply for a bigger loan.
For example, let’s say you have saved $5,000 for a downpayment. Your partner has also saved $5,000 of their own money, meaning you’ve got double the money. It enables you to afford a larger downpayment, which opens up your mortgage options and can help you get lower repayments every month. You can quickly calculate what you can afford alone or with your partner’s finances on sites like Mortgage Quote. Search for available mortgages in your area and then input different downpayment values to see the difference – it’ll blow your mind and make buying a house seem more achievable.
That’s another key benefit – joint mortgages can help you buy a house sooner than expected. Instead of waiting another few years, your combined finances may allow you to get a loan already.
There’s also less stress involved when two people have to repay the loan – you can split the payments in half between the two of you.
Nevertheless, you should be aware that joint mortgages can result in problems if the relationship falls through. You could also come across issues if one person in the relationship can no longer make repayments. Should one of you lose your job, the other still needs to make the full repayments.
Regardless, joint mortgages are the best option for couples. If the two of you have future plans and want to build wealth together or start a family, then consider getting one of these mortgages. You can buy a house sooner and have access to more mortgage loan options!