Singles and unmarried couples can buy homes
Buying a home as a single person has challenges, but it remains a viable option for many.
Around 35 million single people in the U.S. own a home, according to Pew Research. More women than men own homes. While the majority of single people rent, about 13 percent of single women and 10 percent of single men are homeowners, according to The Hill. Pew Research says part of the reason for the gap in homeownership between men and women is because there are more single women, some of whom are widows.
The rules for home buying are the same whether you are single or married. The difference is that couples generally have two incomes and two credit profiles. The two profiles can enhance the overall financial package and put the couple in a position to afford more types of houses. Single people must rely solely on their own financial profile to secure a mortgage.
Income and debt determine how much house anyone can afford. Credit scores affect the interest rate on mortgage (the better the score, the better the rate). Cash in savings is required for a down payment, and additional savings are good idea after purchase for repairs and as a safety net.
One increasingly common situation: An unmarried person with a partner buys a home. In fact, unmarried couples made up about 9 percent of all homebuyers in 2020, according to the National Association of Realtors. In most of these cases, just one partner buys the home, but some lenders do take co-borrowers.
Still, unmarried couples do have some special decisions to make. One partner can hold sole ownership of the property. Each partner can hold half of the ownership of the property, with the entire property reverting to the other partner should one die. Or ownership can be divided by any percentage and each partner can leave their share of the property to their own heirs.