Advice for Friend Buying Property with Longtime Girlfriend

[Alex Hymanson]

Hey all - my friend is seeking advice on how to buy a house with his longtime girlfriend. Should he put both their names on the mortgage/title/etc. when purchasing or would it be better to do this once they are married.  Thanks!

[Loren Clive]

Need more info . . . Are they both going to be on the loan? Is she contributing cash?

I would advise if your friend is the only person on the loan and can buy the house by himself, just put it in his name. This helps if they ever break up AND if she ever decides she wants to buy a house. 

Because if she's not on title, she can be a first time homebuyers/owner-occupant for any home she wants to buy, and take advantage of the preferential interest rates for owner occupants.

Another factor is that if both are on the loan, they will both be liable for the entire debt, and it will hurt them going forward because of debt to income ratio if they want to buy more properties.

He can always give her a life estate in the unlikely event of his death if it's an inheritance issue. In which case I would speak with an attorney.

Bottom line, whatever they decide it should be crystal clear going in to both parties.