6 questions unmarried couples should ask before buying a house

Buying a home with your partner is a huge milestone, but an unmarried couple buying a house together might face a few extra hurdles compared to those who are legally wed. While marriage conveniently provides automatic legal frameworks and security for property, if you’re unmarried, you can absolutely achieve security and peace of mind with some proactive planning and the right paperwork.

Navigating this process is an empowering step toward your shared future. Because co-borrowing can be structured in several ways, it’s important to understand how your choices today can impact your rights and responsibilities down the road. Before you sign on the dotted line, let's explore the essential questions to help you navigate the co-borrower process with confidence.

1. Who is applying for the mortgage?

When you’re buying a house as unmarried couple, one of the first big decisions is deciding whose name goes on the mortgage application. Depending on your unique financial situation, you might choose to have one partner apply solo or both partners apply together.

One partner on the mortgage

If one of you has a significantly stronger credit score for a mortgage and more robust financials, it might make sense for that person to submit the application. Most lenders require a minimum credit score of 580 to 620, and having the partner with the higher score as the sole applicant can often secure better interest rates and terms, saving you both money over the life of the loan. If your financial situation changes later, you can always refinance to add the other person to the loan.¹

Both partners on the mortgage

Some lenders may allow both of you to apply for a mortgage together. This may help you and your partner qualify for a larger mortgage with your combined incomes, while ensuring that both of you are financially invested in the property. You’ll also both be on the mortgage if you do eventually get married. Just keep in mind that lender may base their lending decision on the lower of your two credit scores, especially if one is significantly lower. In this case, it might be best for just one of you to apply for the mortgage. To see how different scenarios might affect your monthly payment, you can use amortgage calculator to run the numbers together.

2. What’s the best way to hold the title?

Your house title provides proof of ownership and a physical description of the property. It may also include liens on your property that allow others to have a claim on the property in certain situations. Your lender will have a lien on your title until the mortgage is repaid in full.

The way the title is worded can impact the way ownership is transferred as well as your rights to transfer ownership. Here are some options:

• Sole ownership: If one partner wants to own the property outright, they may select sole ownership.
• Joint tenancy: If you and your partner want equal shares of the property, you may want joint tenancy created under a single instrument with the right of survivorship. This means that upon the death of a partner, the surviving partner will receive the deceased partner’s share (half) of the property.
• Tenants in common: Under tenancy in common, the co-owners have undivided interest or equal rights to the entire property. Tenancy in common differs from joint tenancy because it holds individual titles for their share of the property and can dispose of it or have an heir inherit their ownership share.
• Trust: A living trust of real property holds legal and equitable title to the real estate. The trustee holds the title for the trustor (aka the beneficiary), who retains all management rights and responsibilities.

How you title your property will impact the outcome of a later sale. It can also impact the taxes and fees associated with selling your home. To determine the best way to hold the title for your unique situation, contact a real estate attorney or tax advisor.

3. Should you get a cohabitation property agreement?

When couples live together, married or not, they typically accumulate equity. But, unlike married couples, unmarried couples may not have the same innate property protections.

Because of this, it’s wise to draw up a cohabitation property agreement with an attorney. The agreement will outline who owns what and what happens if a couple separates.

Without a cohabitation property agreement, you might have to deal with time-consuming and expensive legal battles. Many agreements include:

• The type of ownership on the title and deed
• How income and expenses are shared
• How newly acquired assets are divided
• A buyout agreement
• An action plan for a job transfer
• A dispute resolution process
• An exit strategy

Creating a cohabitation agreement with an attorney will help you to focus on the exciting aspects of buying a house without worrying about how your rights and assets will be protected.

4. How will you split costs?

Living together means sharing more than just a roof; it also means sharing the financial responsibilities that keep that come with homeownership. Deciding how to split these costs early on, and putting this in writing, can prevent a lot of stress later on.

Here are some common homeowner costs to consider:

• Property taxes and  homeowners insurance.
• Routine maintenance, like clearing gutters or lawn services.
• Equipment replacement (like a water heater) and home service warranties.
• Upfront costs like the down payment and  closing costs.

You might choose to open a joint account for shared bills or clearly establish the division of expenses by category in your cohabitation property agreement. For example, one person can cover the utilities while the other handles the  HOA fees. If there is a significant income gap, some couples find it fairer to split costs proportionally based on what each person earns.

5. What happens if one person wants to move out or dies?

Whether it’s a breakup or a partner getting a job in another state, having a plan in place for these types of situations is essential. Situations and relationships change, and while it might sound pessimistic to think about these kinds of occurrences, you can avert potential headaches and legal issues by being proactive. Planning ahead can make the home buying process go even more smoothly.

Here are a few scenarios you should be prepared for:

• Selling the home: If you break up and neither can afford the home alone, selling and splitting the proceeds according to your agreement is often the cleanest option.
• A partner buyout: One partner may choose to buy out the other’s share. This often requires refinancing the mortgage to remove the departing partner's name.
• Death of a partner: As mentioned before, if you have joint tenancy, the survivor gets the house. Under tenancy in common, the deceased's share goes to their designated heirs, which might mean the surviving partner has to buy out those heirs to keep the home.

6. Is your relationship ready for buying a home?

While this doesn’t need to be a stressful conversation, it’s important to take some time to talk to your partner about the future of your relationship and how buying a house will play into your dynamics as a couple. Ask yourself if your relationship is ready for the next step. If you were to break up with your partner, is the relationship mature enough for you both to figure out who gets the house, or what should be done with it?

Buying a house together is a commitment that can strengthen your partnership and help you make memories. However, take some time to consider how owning a home together will change the relationship or introduce new challenges. Being on the same page in terms of expectations can help make those moments even more enjoyable.

FAQ about buying a house with someone you’re not married to

Here are a few common questions home buyers have when thinking about purchasing a house with their partner.

What happens if one of us is not on the mortgage?

Ultimately, the person whose name is on the property’s title is the owner of the property. They have full control over the home and can sell it with or without their partner’s permission. The partner whose name isn’t on the title will have no ownership stake in the property.

What needs to change if we get married after buying a house?

If you and your partner get married after buying a house together, you’ll need to update a few documents. This will include the deed, title, homeowners insurance policy, and applicable utility accounts.

Can I add my partner’s name to the mortgage after buying the house?

Whether you’re getting married or simply want to split ownership of the home, the only way to add your partner’s name to the mortgage is to refinance into a new loan.

How will buying a house together before marriage impact our taxes?

Buying a house can help you save money on your taxes through the mortgage interest deduction. However, most lenders only send one partner a copy of Form 1098, which shows how much mortgage interest you paid over the year. This means both partners will need to itemize their taxes and calculate the amount of interest each one paid throughout the year.

Do we need to speak to an attorney?

While it’s not required, it’s always a good idea to work with an attorney when buying a house as an unmarried couple. The attorney can make sure any rights of survivorship are put in writing and can be upheld.

The bottom line: Buying a house unmarried is complex, but not impossible

Buying a house as an unmarried couple involves some extra planning, but it’s a rewarding way to build a future. By choosing the right mortgage structure, titling your property correctly, and creating a solid cohabitation agreement, you can protect your investment together. If you’re ready to take the next step in your journey,start your application with Rocket Mortgage today.

¹ Refinancing may increase finance charges over the life of the loan.

This article is for educational purposes only and is not intended as legal, tax, or financial advice. Property ownership laws and mortgage considerations may vary based on your location and personal circumstances.

Rocket Mortgage is a trademark of Rocket Mortgage, LLC or its affiliates.