Not married: Home loan in both our names or just one?

[bjl584]

You have to be a millionaire or save up for 10 years to have that kind of spare cash.

Why?

I did it in 4 years, and I was making $40,000 a year at the time.

[riverwed070707]

and this is my conditions... we are ready now. we can afford it now. why should a ring on my finger dictate everything.

What makes you think you can afford it? What, in your mind, makes someone financially ready to buy? What conditions or goals did you set for yourself that would determine when you could buy?

[bjl584]

and this is my conditions... we are ready now. we can afford it now.

What are you basing this on? A preapproval from a mortgage broker? If so, don't even get me started.

Are you willing to list your incomes, debts, and assets? Then I can see if you really can afford this.

[kate0558]

So with all the divorces these days why do married people even put both names on the mortgage?

[disneysteve]

we are ready now. we can afford it now.

Your response to the 20% down advice makes it quite clear that you can't afford it now.

[bjl584]

So with all the divorces these days why do married people even put both names on the mortgage?

The divorce rate is high because a lot of people get married for the wrong reasons. But at least with legal protection when it comes to assets, things can be split by the courts in a basically fair manner.

[riverwed070707]

So with all the divorces these days why do married people even put both names on the mortgage?

Once you're married, you're legally bound to the debt regardless of whether your name is on the title, there is no drawback. For single couples buying together, you can't both take the benefits. You can't both claim the property taxes, etc. If you can't file jointly, one of you is going to get screwed so you'd be better off having one person buy and coming up with a plan that is fair in the case of a split.

[kate0558]

why wait 10 years, suck it up in a small 1 bedroom apartment when for the same price i could get a house with more space and a yard. We are lucky enough now to qualify for a usda 100% financing loan. OR i could wait 10 years... be miserable stuck in my little apartment, have ZERO money cus every penny i have left over is going to savings to save up for this insanely expensive down payment... then in 10 years i pay 30k more because the market went up and i could end up with a nice and high interest rate. Oh you're right thats SO much smarter. Like i get it ur supposed to be able to sell and make a profit and you don't want to be under water but we already got the house for less then it was appraised for and less then what the sellers owe on it.

I'm not really as stupid as i look. We are fortunate enough to live in an area where homes are actually affordable. We aren't buying anywhere near what we qualify for.... mortgage, property tax and homeowners insurance add up to equal our cost for our small 1 bedroom apartment. Financially it makes sense to buy.

We have secure jobs, we are happy with the area we live in, we have what i would consider a secure relationship. yes even though its not a legal marital status. I thought we were ready until I came here and now i just want to walk away from everything because my relationship is just automatically gonna fail.

I came here looking for advice on whether or not to have both names on a mortgage. is there a reason to do it, or not to do it? Yet no one has an opinion on that because its just automatically a no because i'm not married. I hear married couples sometimes do home loans in only one name... is that a good thing or a bad thing? Thats what i was trying to ask but i guess i'm just the stupid kid that buys a house with her boyfriend. i'll just put my life on hold. or head to vegas for that legal status.

[BuckyBadger]

why wait 10 years, suck it up in a small 1 bedroom apartment when for the same price i could get a house with more space and a yard. We are lucky enough now to qualify for a usda 100% financing loan. OR i could wait 10 years... be miserable stuck in my little apartment, have ZERO money cus every penny i have left over is going to savings to save up for this insanely expensive down payment... then in 10 years i pay 30k more because the market went up and i could end up with a nice and high interest rate. Oh you're right thats SO much smarter. Like i get it ur supposed to be able to sell and make a profit and you don't want to be under water but we already got the house for less then it was appraised for and less then what the sellers owe on it.

I'm not really as stupid as i look. We are fortunate enough to live in an area where homes are actually affordable. We aren't buying anywhere near what we qualify for.... mortgage, property tax and homeowners insurance add up to equal our cost for our small 1 bedroom apartment. Financially it makes sense to buy.

We have secure jobs, we are happy with the area we live in, we have what i would consider a secure relationship. yes even though its not a legal marital status. I thought we were ready until I came here and now i just want to walk away from everything because my relationship is just automatically gonna fail.

I came here looking for advice on whether or not to have both names on a mortgage. is there a reason to do it, or not to do it? Yet no one has an opinion on that because its just automatically a no because i'm not married. I hear married couples sometimes do home loans in only one name... is that a good thing or a bad thing? Thats what i was trying to ask but i guess i'm just the stupid kid that buys a house with her boyfriend. i'll just put my life on hold. or head to vegas for that legal status.

You can, of course, do anything you want. We aren't your parents. You're an adult. All we can do is make suggestions based on they question that you came here and asked.

If you want to buy a house with your boyfriend with 100% financing, though, no one here is going to lie and tell you it's a good idea. And at that point, it's pretty irrelevant which names you put on the mortgage...

[bjl584]

People have given you plenty of good advise. You just aren't listening.

[bjl584]

with 100% financing, though, no one here is going to lie and tell you it's a good idea. And at that point, it's pretty irrelevant which names you put on the mortgage...

Agreed. With a 100% loan, I would put Mickey Mouse's name on the loan. That way when you get foreclosed on, your credit won't take the hit.

[Emerald]

Well just the fact that he can qualify on his own should tell you its not too much of a house. its about the same cost as rent.

HAHAHAHA 20% down payment. Thats funny. You have to be a millionaire or save up for 10 years to have that kind of spare cash.

Well, I saved up 20%, as a single woman no less, on about $50,000/year. It took less than 10 years, and it's the only reason I currently have equity in my home. So keep laughing.

If you're that dead set on buying a home right this minute, then how about going down to the justice of the peace and getting legally married, then buy the house as a married couple, then have a nice big wedding ceremony. At least then you'll be equally liable for your financial decision.

[bjl584]

[QUOTE=Emerald;312191]Well, I saved up 20%, as a single woman no less, on about $50,000/year. It took less than 10 years, and it's the only reason I currently have equity in my home. So keep laughing. QUOTE]

There you go. It took me 4 years earning around 40K. OP seems to think it will take forever, but that isn't the case. There are plenty of examples of people saving 20% in a reasonable time.

[disneysteve]

We are lucky enough now to qualify for a usda 100% financing loan

I'm not sure what about that you consider lucky. 100% financing is a horrific thing to do. I'd run away from that deal as fast as I could.

mortgage, property tax and homeowners insurance add up to equal our cost for our small 1 bedroom apartment. Financially it makes sense to buy.

No. This is where you're wrong. It only financially makes sense IF YOU CAN AFFORD IT. Clearly, you can not.

Let me ask you this. What percentage of your joint income will the monthly payments be? What multiple of your joint annual income is the price of the home?

my relationship is just automatically gonna fail.

None of us said your relationship is doomed. What we've said is that if you do this as two singles and the relationship ends, you've got big problems that you don't have if you do it as a married couple.

I came here looking for advice on whether or not to have both names on a mortgage. is there a reason to do it, or not to do it? Yet no one has an opinion on that because its just automatically a no because i'm not married.

That's correct. That IS our opinion. Don't do it if you aren't married. There are lots of reasons not to do it that have already been stated.

You can, of course, do anything you want. We aren't your parents. You're an adult. All we can do is make suggestions based on they question that you came here and asked.

If you want to buy a house with your boyfriend with 100% financing, though, no one here is going to lie and tell you it's a good idea. And at that point, it's pretty irrelevant which names you put on the mortgage...

Yep. What he said. Do as you please. You came for advice. We've given it. You're ignoring it. That's entirely up to you.

[bjl584]

Do whatever you want, but there was recently a housing crisis in America. Do you know why that happened? Part of it was greedy banks trying to make mortgages. Part of it was the Government pushing banks to make mortgages. But, another part of it was people buying too much house for their income and financing too much of the loan. They had no equity at all in the property. When things went bad, they couldn't pay back the loan. They had no savings, and too many other bills. They got foreclosed on and were thrown out of their house. Financing 100% of the purchase of a home is very risky. Experienced real estate investors can do this. First time home buyers should not. With that much leveraged against you, a wedding looming on the horizon, and all of the other bills that you pay each month, what are you going to do if you get hurt and can't work? What happens if you wreck your car and need to replace it? What happens if a storm knocks a tree down the middle of your house? What happens if you just have a bad month and end up running up your credit cards? Could you handle any of those scenarios and be able to keep your house? Or would you fall behind on the payments. I would seriously rethink what you are planning on doing.