Can you go half on a house with someone?

Yes. There are many ways to have ownership interest in a property, and these include options that allow any number of people to partner when purchasing a home. As long as all the buyers can afford the mortgage, you and your friend – or friends – will be all clear to go in on a house together.

rocketmortgage.com - Buying A House With A Friend: Is It For You? | Rocket Mortgage

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Need help getting started? Here’s what you’ll need to figure out and consider before getting into the standard home-buying process.

Choose Your Partner Wisely

Before anything else, your top priority needs to be making sure you have the right partner to purchase a house with. Sorting through priorities and motives when making such a big commitment can be overwhelming, but you’ll need to ask yourself – and your friend or friends – some frank questions before deciding to purchase together.

Here are just a few to get started:

Are you in a stable financial position?

Can you make good decisions regarding your credit?

Do we want the same things in a house?

How long do you plan on living in the house?

Do you have a stable job?

Is either of us in or likely to enter into a long-term relationship?

Figure Out How To Split Ownership

Ownership terms are often expressed in a way that assumes a married partnership between homeowners, but if you’re buying a house with a friend, you might need to dig a bit deeper to understand how various forms of co-tenancy will function in your specific situation.

There are two main types of ownership to consider:

Joint tenancy: Joint tenancy gives each homeowner equal property shares, but it has some strict rules governing Right of Survivorship and financial responsibility. Tenancy in common: With tenancy in common , property shares can be divided equally or unequally between homeowners and be left to each individual’s heirs, rather than being passed to the remaining co-owners. Typically, however, passing property in this way will still require probate , which joint tenancy avoids.

Decide On Property Type

If you’re moving in with a friend, you might not be interested in a traditional single-family home, though this can be a great option if you’re on board with living closely together. Some other options to consider include various types of multifamily homes, like duplexes. You might even consider getting a larger home with three or four units if you want to live in and gain rental income from your home at the same time.

Divide Responsibilities Equally

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A lot goes into owning a home. Having multiple people to split those responsibilities can be a huge help or a major hurdle, depending on how well you and your friend or friends communicate. Try to figure out upfront who will take care of which responsibilities and how you’ll divide up financial contributions when it comes to various utilities, repairs and other costs. It might even be beneficial to set up a home fund to make sure you’re contributing and have access to emergency funds needed for unexpected expenses.

Make A Plan For Moving Or Selling

Figuring out how to split up might feel like a bad start to owning a home together, but it’s important to have an idea of what you’ll do if something unexpected happens. Maybe you lose your job and need to move to find a new opportunity, or maybe your company needs to transfer you to another city. Perhaps your friend gets into a new relationship and wants to move in with their significant other, or maybe you need to move back home to support your family. Discuss how you’ll handle the situation if one of you has to leave. Will you sell or will you refinance as a single tenant? How will you split selling costs, profits and responsibilities? Regardless of what might cause it, you and your friend might need to break off your home partnership sooner than expected, and it’ll be a lot easier to handle if you have a plan in place ahead of time.

rocketmortgage.com - Buying A House With A Friend: Is It For You? | Rocket Mortgage