Homeownership isn’t just for married folks. Though going it alone can sometimes be a little more challenging than purchasing with a partner, single people can benefit from owning their own home just as much as anyone else.
Married couples make up the majority of home buyers (61%, according to the National Association of REALTORS®), but singles collectively make up the second-largest share, with female buyers making up 17% of recent home buyers and male buyers making up 9%.
Wondering about the process of buying a home as a single person and what hurdles you should look out for? Here’s our guide for anyone looking to pursue the path to solo homeownership.
Be Aware of Challenges For Single Home Buyers
Often, the main challenge that single home buyers have to overcome has to do with income and buying power.
When a couple buys a home together, mortgage lenders will typically include both of their incomes when calculating how much they can afford to borrow. So, if one spouse makes $40,000 a year and the other spouse makes $60,000, they have a combined household income of $100,00, giving them a lot more buying power together than what either of them would have as an individual.
If you’re using a mortgage loan to purchase a home, the lender will approve you for an amount they believe you can reasonably afford to pay back. For single middle- to low-earners, this can make mortgage approval more challenging.
Having a significant amount of debt can add to your difficulties, as having a high debt-to-income ratio (DTI) limits the amount you’ll be able to borrow.