You don't necessarily have to be married to own a home together. There are certainly no legal bars to owning a home with whoever you want, be it a sibling, a parent, a child (over 18), or a close friend. You might want to consider the ramifications, though, of doing so before you enter into a long-term binding legal agreement with someone you are not married to. Read on for some things to consider about becoming the co-owner of a home with a close friend.

What the Deed Says

Deeds list the names of all legal owners of a home and can contain an unlimited number of names. If you are buying a home with someone, having both names on the deed makes good sense in several ways. While you may hope to be together forever, the time might come when you part ways. Being on the deed can provide you with a legal right to 50% of the home's ownership in a property dispute. If the property is ever sold, 50% of the money left over after paying off the mortgage belongs to each party. Another uncomfortable topic some couples need to address when they become joint homeowners is the death of one party. Joint tenancy deeds (deeds with more than one name) mean that the home is automatically the property of the other person named on the deed. If you want to keep the home away from probate after a death, you may want to speak to a lawyer about titling the deed using a right of survivorship designation.

What About the Mortgage?

While the deed is an easy issue to address, lending can be a bit trickier. If both parties are listed on the loan application, they both need to pass the credit approval standards used by the lender. You don't, however, have to have both parties on the mortgage. Doing so confers no special rights on the co-owners. If you only list one party on the application, though, they must have enough income to be approved for the home loan. If one party has a sketchy credit history, you might want to leave them off the application. At the same time, being a party to a mortgage only enhances a credit score.

Knowing how to address a title along with who should apply for the mortgage are important considerations. Speak to a real estate agent for some advice before you move forward with a decision when looking at homes for sale.