You’ve got a best friend. Y’all both want to be homeowners but can’t afford a lot of houses in the New Orleans area on your own. Well, if you already spend all your time together – but definitely don’t want to share a bathroom and all your living space – have you thought about buying a house with your best friend? And not just any old house, but buying a double together? This is how to buy a house with your best friend!
Buying a double in New Orleans means you get two houses for the price of like one and a half. Just because it’s a double, doesn’t mean it’s automatically double the price.
But what about the financing?
If you two can both get financing, then you can definitely purchase a place together!
Just imagine if Sally is approved for 250k and you’re approved for 250k, you know have an awesome budget that is double of what you can do on your own! This opens up opportunities to buy in neighborhoods you wouldn’t otherwise be able to afford.
Your local lender will pull both of your credit scores, look at all your documents, and let you know what y’all can afford collectively.
The one thing you need to decide though is what you’re each comfortable paying monthly. If you’re approved for 500k, but prefer a monthly note in the 400k range, then we should stick to that budget.
Can we both own a portion of this house?
Absolutely. The title of the home will be in both of your names.
What if only one of us can get financing?
This is a decision you guys have to make together and see what everyone is ok with.
Let’s say Sally can get approved for 600k all on her own, but you don’t make enough on paper to help with the pre-approval. Maybe you have the means to pay it, but it’s off the books. (if you know what I’m saying.)
If you and Sally are cool with the mortgage in her name, but having both of you on the title – then go for it. I would discuss this with an attorney and your CPA beforehand though.
What are the downsides of this?
Well, if one of you moves away and doesn’t want their portion of the home anymore – you can’t just sell your half. The other owner would have to buy your portion or you would both have to agree on selling the house.
What are the upsides?
Maybe this house is just for the next 3-5 years while you guys figure out the next stages of your life. If so, this a great opportunity to not pay a landlord and do what you want with a house!
Also, this house could become a rental property for both of you if you decide to move on from it.
Lastly, just an idea I’m throwing out there, this could be the house you retire to in your later years. Buy it now with your bestie, move on and keep as a rental, then return for your glory days!
One final upside, you have someone to share the maintenance costs of a home together.
Would you buy a home with your best friend?
I sure would! In this day in age, people are getting married later in life. There is no reason to put off buying a home until this imaginary spouse and kids come along. Seize your opportunity to be a homeowner!
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