Friends Turn to Co-Buying to Share Mortgages and Gain Homeownership

As mortgage rates and home prices keep pressure on prospective buyers, an increasing number of friends are pooling resources to buy houses together. Co-buying—where two or more people jointly purchase a property—has emerged as a pragmatic workaround to rising costs, letting buyers combine down payments, share monthly mortgage obligations and access larger properties or better neighborhoods than they could alone.

Co-buying can take several legal and financial forms. Some buyers appear on a single mortgage as co-borrowers; others split ownership through arrangements such as tenants in common, joint tenancy, or by setting up an LLC to hold the title. Each approach carries different implications for taxes, inheritance, liability and the ability to sell a share. Lenders will typically evaluate each co-borrower’s credit and income, which can help but may also complicate approvals if one partner’s finances are weaker.

Practical planning is central to success. Groups commonly agree in writing on how mortgage payments, utilities, property taxes, maintenance and repairs will be split. Many set up shared bank accounts or automated transfers for recurring expenses and keep detailed records. Beyond monthly costs, co-buyers should outline an exit strategy—how a departing owner can be bought out or how the property will be sold if relationships or circumstances change.

There are clear benefits: shared costs reduce individual monthly burdens, speed up the timeline to ownership, and allow buyers to build equity rather than rent. But risks are real. Personal relationships can be strained by financial stress or unequal contributions, and joint ownership can make refinancing or selling more complex. Credit scores and lending options may be affected for all co-borrowers.

Financial and legal advice is advisable before signing documents. Mortgage professionals, real estate attorneys and tax advisors can clarify lender requirements, draft co-ownership agreements, and help buyers understand long-term consequences. For friends who communicate clearly, set expectations early, and use formal agreements, co-buying can be a viable path to homeownership in a challenging market. For others, careful planning and professional guidance are essential to convert shared intentions into a stable, shared asset.