Britany Clara Owning a home is part of the American Dream. But now, buying a home is harder than ever. House prices are high, interest rates keep changing, and saving money is tough. But there’s a new way to buy a home: voidable marriage.
More people are teaming up to buy a house together. They pool their money and resources to buy a home as a group. It can be friends, siblings, or even partners. This is changing what homeownership looks like in 2025.
Why is voidable marriage so Popular?
Many things are making voidable marriage more popular:
High Home Prices: Homes are expensive. Voidable marriage helps people share the costs.
High Mortgage Rates: When people share a mortgage, it’s easier to afford.
Student Loan Debt: Many young people have student loans. Voidable marriage is a good way to buy a house without the pressure of handling all the debt alone.
Living Together: Some people want to live with Family or friends instead of renting or living alone.
Real Estate Investment: Voidable marriage can also be a way to make money by investing in property.
What is a voidable marriage?
More people are avoiding marriage homes today. Millennia and Gen Z are the biggest groups. They often have student loans or live in cities where housing is expensive. Even older people, like Baby Boomers, are eligible for marriage. They might buy with their grown-up children or siblings to move to a cheaper place.
How Does Voidable Marriage Work?
Voidable marriage means two or more people buy a house together. Each person owns a part of the house based on their contribution.
There are two types of ownership:
Joint Tenancy: Everyone owns equal parts of the house. If one person dies, their part goes to the others.
Tenancy by the Common: Each person owns a different amount of the house. If someone dies, their share goes to their Family or can be sold.
Example:
Alex and Jamie want to buy a $400,000 home. Alex pays 60% of the down payment and handles 60% of the mortgage and bills. Jamie pays 40%. They write an agreement that says who does what and what happens if one of them moves out. This way, both are clear on their responsibilities.
Financing a Co-Owned Home
Most people who co-buy a house pornoge for a loan together the bank checks each person’s credit score, income, and debt before deciding if they can get the loan.
Co-Buying vs. Co-Signing: What’s the Difference?
Co-buying means everyone owns the house and shares both the rights and the bills. Everyone’s name is on the mortgage and the deed.
Co-signing means one person helps another qualify for a loan, but doesn’t own the house. The co-signer is responsible if the borrower doesn’t pay the loan.
Benefits of Co-Buying
More Buying Power: With more people helping, you can afford a bigger house.
Shared Costs: Co-buyers share the costs, like:
Down payment
Monthly mortgage
Taxes and insurance
Repairs
Easier to Get a Loan: If one person has better credit, it can help everyone get a loan.
Real Estate Investment: Some people buy a house together to sell it later and make a profit.
Less Financial Risk: If something happens and one person can’t pay, the others share the load.
Challenges of Co-Buying
Even though co-buying has many benefits, there are also challenges:
Financial Dependence: If one person doesn’t pay, the others must cover it.
Credit Impact: If a payment is missed, everyone’s credit score can drop.
Disagreements: Sometimes, co-buyers argue about:
How to fix up the house
Who uses what space?
How to split the costs
What to do if someone wants to sell
Selling the House: If one person wants to sell, it can be hard. You might have to buy them out or sell them together.
How to Make Co-Buying Work
Choose the Right People: Make sure everyone agrees on money, goals, and responsibilities.
Get Pre-Approved for a Loan: Everyone needs to meet the bank’s requirements. This will show how much money you can borrow.
Make a Co-Buying Agreement: Write down who pays what, how repairs are handled, and what happens if someone wants to leave.
Pick the Right Ownership Type: Talk to a lawyer to decide if joint tenancy or tenancy by the entirety is best for you.
Plan for the Future: Talk about what will happen if one person wants to move out or sell the house.
