How two unmarried Floridians may buy a home together

On Behalf of | May 2, 2022 | real estate banking & finance | 0 comments

Florida’s statutes allow two unmarried individuals to purchase a home together. When buying property as a duo, the parties may establish homeownership through a tenancy in common, as noted on the Florida Legislature website.

As described by U.S. News, tenancy in common could allow the buyers to divide each individual’s ownership share by the amount invested. If, for example, a home costs $100,000 and both owners provide $50,000 for the purchase, each individual may then own half of the property.

Applying for a mortgage as co-borrowers

According to, two or more individuals may apply for a home loan as co-borrowers. The type of loan may specify how many borrowers may have their names listed on an application. Fannie Mae loans allow no more than four applicants. Loans backed by the Veteran’s Administration, however, may not place a limit on the number of borrowers.

Co-borrowers have equal responsibility for meeting monthly mortgage payments. They typically divide home expenses such as maintenance, insurance and taxes. Lenders generally run credit checks on each borrower. All applicants may need to show good credit and have an acceptable debt-to-income ratio before lenders approve.

Adding a co-signer who does not reside in the home

A co-signer’s relationship to a property differs from that of a co-borrower; he or she does not need to reside in the mortgaged home. Co-signers also have no ownership rights; their signatures on mortgage documents, however, illustrate their agreement to make the payments if the borrowers cannot. Co-signers often help secure the loan because they have a larger income or a higher credit score.

Co-borrowers and co-signers could make it easier for prospective homeowners to qualify for a mortgage. If payments fall behind and the mortgage goes into default, however, lenders may take action against co-borrowers and co-signers.