Joint Mortgage With a Friend: Is It a Good Idea?

joint mortgage with a friend

If you want to become a homeowner but are facing challenges when it comes to qualifying for a mortgage, a joint mortgage can help you get your foot in the door of ownership.

When you sign on to a mortgage with another party, you can combine your income and debts in order to improve your DTI ratio.

Before you start calling everyone you know to set up a joint mortgage with a friend, though, you’ll want to understand the risks.

Let’s take a quick look at what you’ll want to consider before hopping into a serious financial arrangement with a friend.

Joint Mortgage Meaning: What You Should Know

Joint mortgages are commonly taken out with a spouse or partner. However, you can also take out a joint mortgage with a friend or family member. Sometimes parents will help their child’s success of getting a mortgage by taking out a joint mortgage with them.

The parties on the mortgage don’t all need to be living in the purchased home. It can simply be a vehicle for buyers to access larger mortgage amounts and make it easier to qualify for a mortgage using the income and assets of others.

Getting a Joint Mortgage With a Friend: The Pros and Cons

If you are thinking of getting a joint mortgage with a friend, you’ll want to spend time considering both the advantages and the disadvantages. This can cause different relationship issues than having a shared mortgage with family members, and the strength and quality of your friendship will need to be factored into the equation.


There are a number of reasons why you might be tempted to get a joint mortgage with a friend. Some of these include:

  • Boosting your chances of being approved for a home loan
  • Getting to split the costs of ownership with another person
  • Being able to enter the housing market sooner than you could on your own
  • Eliminating uncertainty around housing if it will be a primary residence
  • Gaining passive income if it will be an investment property

As you can see, there are some compelling reasons to sign on to a joint mortgage with another party.


A number of risks that can be quite severe accompany the prospect of a joint mortgage with a friend. Some of these include:

  • Life changes that disrupt the arrangement you have agreed upon
  • Having trouble qualifying for another loan in the future

Remember, buying a property is a long-term commitment. Most mortgages have 15- to 30- year terms. It’s worth being considerate of where you and your friend will be in several decades and whether this arrangement will put a strain on your friendship.

Getting a Joint Mortgage With a Friend Warrants Serious Consideration of the Risks

Before you get a joint mortgage with a friend, you’ll want to iron out all of the details in advance. It’s important that you and your friend are completely on the same page about plans for the new property. You’ll also want to consider their credit history and financial background and whether or not it will be helpful in the qualification process.

Are you looking for more valuable resources about the mortgage process? Check out our library of articles here!

1 thought on “Joint Mortgage With a Friend: Is It a Good Idea?”

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