Buying a House Solo vs. Together: What You Need to Know

So, you’re ready to buy a home in Raleigh, NC — exciting! But here’s the big question: Should you go it alone or team up with someone? Your decision impacts everything from your borrowing power to your loan terms, and there are major differences in how lenders assess solo versus joint buyers. Let’s break it all down so you can make the smartest choice for your situation.

Income: How Much Can You Afford?

Buying with someone? Lenders take both of your pre-tax incomes and combine them to determine how much home you can afford. This means that if Partner A earns $80,000 and Partner B earns $100,000, your total qualifying income is $180,000. With a higher combined income, you could qualify for a larger loan amount and afford a more expensive home. (Mortgage Calculators: HERE)

Flying solo? Only your income counts when determining how much you can borrow. If you make $80,000 a year on your own, that’s the income your lender will use to calculate your borrowing power. This could mean a lower loan amount compared to buying with a partner.

Debt: How Does It Impact Your Approval?

Lenders don’t just look at how much you make; they also evaluate how much you owe.

Buying together? Your monthly debt payments—like student loans, car payments, and credit cards—are considered mutual. If your partner has a lot of debt, it could impact how much you both qualify for, even if your debt is minimal.

Buying solo? Only your debt is factored in. If you have minimal debt and steady income, you might qualify for a more favorable loan than you would in a joint purchase with a partner who has significant debt.

Credit Score: The Higher, the Better… But There’s a Catch

Your credit score plays a crucial role in determining the interest rate and terms of your mortgage.

Buying as a couple? Lenders typically use the lower of the two credit scores when approving the mortgage. If one partner has an excellent score (750+) but the other has a lower score (650), the lender will base the loan approval on the 650 score. This could lead to a higher interest rate or more restrictive loan terms.

Buying solo? Only your credit score is considered. If your score is strong, you won’t be impacted by a partner’s lower credit score.

💡 Pro Tip: If one of you has a lower credit score but the other qualifies on their own, some states allow just one person to be on the mortgage while both partners remain on the home’s title. This way, the stronger credit profile gets the best loan terms while both of you still have ownership rights.

Flexibility in Ownership and Loan Application

When buying a home, there are ways to structure ownership and mortgage applications to best suit your financial situation.

• One partner can be on the mortgage while both are on the title. This is ideal if one person has a lower credit score, but both want ownership.
• Both partners can be on the mortgage and title. This means joint financial responsibility, for better or worse.
• If one person is the sole borrower, they are solely responsible for the mortgage. Even if both are on the title, only the borrower is liable for payments.

Married vs. Unmarried: Does It Matter?

Marriage doesn’t impact mortgage approval within most programs, but it can have legal and financial implications if things go south.

• Married couples often have more legal protections. In many states, marital property laws ensure that assets are divided equitably if a couple splits.
• Unmarried partners may need legal agreements. If you’re buying with a partner and aren’t married, consider a co-ownership agreement outlining what happens if one of you wants to sell or move out.

Final Thoughts: Which Option Is Right for You?

• Buying together can increase borrowing power but may also bring complications if one partner has a lower credit score or more debt.
• Buying solo means full financial control, but with a single income, it may limit your purchasing power.
• Hybrid approach: If one partner has a stronger credit score, structuring the mortgage and title separately could be a smart move.

Understanding these factors can help you make an informed decision and set yourself up for homeownership success—whether you’re buying solo or as a team Certified Home Loans is here to help!