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Can you buy a house with a friend?
You can purchase a home with virtually anyone, including a friend or several friends. But buying a house with a friend has benefits and drawbacks. It also entails taking a unique set of steps to qualify for a mortgage.
Check your eligibility to buy a home with a friend. Start here (Nov 5th, 2026)
Pros & cons of buying a house with friends
A February 2022 Realtor.com/HarrisX survey of about 1,000 adults found that 31% of Americans had bought a primary home with someone other than a spouse. But purchasing property with a friend has its share of pros and cons.
Pros of buying a house with friends
- It can be easier to qualify for a mortgage loan. If both of you apply for the mortgage, lenders will consider your combined assets, credit scores, and incomes. They use these to determine your eligibility for a home loan. And two incomes are always better than one in terms of how much home you can afford.
- It can help with a down payment. Splitting a down payment can help you save a lot of money upfront. The median down payment is 10% for first-time buyers and 19% for all buyers. That’s according to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers. At those levels, a down payment on a $300,000 house would cost $30,000 to $57,000. That’s no small amount.
- It can make ongoing monthly expenses more manageable. You and a friend can share responsibility for the monthly mortgage payment. In addition, you can split other homeownership costs, such as utilities, maintenance, repairs, and any mortgage insurance. This will help to make homeownership more affordable for both parties.
Cons of buying a house with friends
- It can potentially hurt your mortgage rate. If your friend has a lower credit score than you do, their lackluster credit could impact the mortgage rate you qualify for. Mortgage lenders will consider both borrowers when reviewing your application. Generally, borrowers with credit scores of 780 or higher qualify for the best conventional mortgage interest rates.
- It prevents you from having sole control of the home. When you co-own a home with a friend, your friend has a say over what happens to the property. This can create tension if only one of you decides you want to sell the home in the future.
- It can strain your friendship. Co-owning a home with a friend can be a recipe for tension if you don’t see eye to eye. It can also hurt your friendship if you live in the home together and don’t gel as roommates because of lifestyle differences.
How to buy a house with a friend: Step-by-step guide
Now you know the pros and cons of purchasing property with a friend. As a result, you can make an informed decision about whether to buy a home together.
If you decide you want to move forward, the following steps can streamline the buying process.
1. Create an ironclad contract.
Things can get messy without a written contract that spells out the terms of your agreement as co-owners. Your ownership agreement should specify who’s responsible for what expenses (including utilities, repairs, and home improvements). It should also cover how you’ll share home appreciation and divide tax breaks. Finally, it should state what happens if either person wants to sell. That includes how you’ll split capital gains when you sell the property.
Pro tip: You can find generic co-ownership agreements online. However, it’s wise to have a real estate attorney draw up your contract. At a minimum, have one review your contract before you sign it, so the terms are fair to both parties.
2. Determine your homeownership structure.
When co-buyers aren’t married, they typically share title (ownership) of the property as either tenants in common (TIC) or as joint tenants. TIC is a more flexible type of ownership since it allows owners to have an unequal share of the property. That can be a good option if one person funds a larger portion of the down payment. Joint tenants, meanwhile, generally own equal shares of the home (50-50 for two owners).
3. Create a budget.
Discuss what price range you feel comfortable with so that you’re on the same page when you go to tour homes. Determine the maximum amount that you agree to spend on a home.
4. Discuss your exit strategy.
Establish clear provisions for what happens to the home if one of you dies or wishes to sell your stake. Also plan for a financial hardship that leaves one of you unable to pay their share of the mortgage. These conditions will provide protection for both parties.
5. Create a joint bank account.
A joint checking account for homeownership expenses can help ensure that all bills get paid on time. It can cover the monthly mortgage payment, utilities, property maintenance, homeowner’s association dues, and other ongoing costs.
When is buying a house with a friend a good idea?
There are a number of scenarios where it may make sense to purchase a house with a friend:
- You need help qualifying for a mortgage. Buying a house with a friend who has strong credit and a good income can strengthen your loan application. That helps if you have a lower credit score or insufficient income to qualify for a home loan. Each lender sets its own credit score minimum, and many still use 620 as their cutoff. It can also be a great opportunity for first-time home buyers, who may have a harder time coming up with down payment funds.
- You can’t afford homeownership expenses on your own. You may not feel comfortable taking on the responsibility of a mortgage, property taxes, insurance, and other recurring expenses. If so, buying a property with a friend can help you manage the costs.
- You want the same things in a house. You might buy a primary home, where you’ll live together as roommates, or an investment property. Either way, make sure you’re aligned in terms of the type of house you want to purchase. Drill down to square footage, number of bedrooms and bathrooms, style, and, of course, location.
- You feel comfortable disclosing your financial situation. You’re making such a large investment together, so there should be no secrets about your personal finances. That includes income, savings, debts, credit scores, and spending habits.
- Your friendship is rock solid. Disagreements can arise when you own a home with a friend. They range from mundane squabbles, such as different temperature preferences, to significant feuds, like clashing design tastes. Is your friendship strong enough to withstand the inevitable quarrels that come with co-owning a home?
Buying a house with a friend FAQ
Is it a good idea to buy a house with friends?
Whether it’s a wise idea for you to purchase a home with a friend depends on several factors. The most notable are the shape of your finances and your goals for purchasing the home. Your compatibility as roommates also matters if you’re both going to live in the home as a primary residence. Depending on the housing market where you live, it can help bring a home purchase within reach. So, sit down with your friend before you decide to move forward. Have an honest conversation about your motivations for buying a home together.
Can friends buy a house together?
Yes, there’s nothing stopping you, legally, from co-buying a home with a friend. Joint home ownership isn’t limited to family members or married couples (or unmarried couples!). But it’s important to create a written contract that specifies the terms of your responsibilities and rights as co-owners.
How long should you be with someone before buying a house together?
There’s no hard-and-fast rule for how long you should live with a friend before buying a house together. Still, it’s generally a good idea to cohabitate for at least a year before going in on a home together. You’ll then have a strong sense of how compatible you are as roommates before you commit to a long-term relationship.
Final thoughts on buying a house with a friend
Buying a house with a friend can bring home ownership into reach for some home buyers. For buyers who weigh the implications of sharing a mortgage, it can provide a great opportunity to begin building home equity.
Check your eligibility to buy a home with a friend. Start here (Nov 5th, 2026)
