Co-buying has been popular for several years, and this is a trend that doesn’t show any signs of slowing.
With high home prices and rising mortgage rates, many buyers bring in friends and family members to make their homeownership dreams a reality. Then, they can share the home, split costs and enjoy the benefits of owning property together.
Of course, co-buying isn’t for everyone — or every situation. Are you considering buying a property with a loved one? Here are four scenarios in which co-buying may benefit you.
You need help with your credit. If you have a low credit score or late payments on your credit report, having a co-buyer with a better score could help offset the risk you present and help you qualify for a loan. It might even get you a lower interest rate.
You have low or inconsistent income. Your income plays a big role in your loan process, so if your earnings are spotty or you’re retired, it may be hard to qualify. With a co-buyer (especially one with regular wages), you have the benefit of two incomes on your application.
Your debt-to-income (DTI) ratio is high. If your DTI is too high (over 43%), then bringing in a co-buyer with a lower DTI could help you qualify for the loan — and possibly for a better rate.
You can’t afford home prices on your own. You may want a co-buyer if the down payment, closing costs and monthly mortgage payments are out of reach for you financially. You and your co-buyer can split the costs of homeownership — upfront, monthly and in the long term.
Reach out today if you’re on the hunt for a home. We can work together to get you from start to finish.