Buying a Home with Friends or Family? Read This First

In today’s competitive housing market, more buyers—especially millennials and Gen Z—are getting creative. One of the biggest trends we’re seeing in 2025 is co-buying: purchasing a home with a friend, sibling, parent, or even a long-term roommate.

If you’ve been priced out of the Coachella Valley market while renting in places like Palm Springs, Cathedral City, or Indio, teaming up with someone you trust could be your path to homeownership.

But co-buying isn’t as simple as splitting the down payment. It takes planning, communication, and the right financing strategy. At MortgageWorks, we’ve helped many buyers navigate this process—and we’re here to guide you through the pros, cons, and key considerations.

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Why Co-Buying Is on the Rise in Coachella Valley

Home prices across the Coachella Valley continue to rise, making it difficult for solo buyers to compete. Many would-be homeowners are paying high rent with little ability to save. By combining resources, two or more buyers can share upfront costs like the down payment and closing fees. Monthly mortgage payments and long-term maintenance costs are also easier to manage when they’re shared. Co-buyers often find themselves able to afford better homes in better locations and can enter the market sooner than if they waited to buy alone.

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Who’s Co-Buying Today?

You don’t have to be married to buy a home together. At MortgageWorks, we’ve helped siblings, adult children and parents, longtime roommates, close friends, and unmarried couples buy homes together successfully. The key is open communication and careful planning. Each co-buying scenario is different, and we work with each client to tailor a financing plan that fits their goals.

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The Upside—and the Challenges

There are some clear advantages to co-buying. You can qualify for more house when you combine incomes. You’ll also share the responsibility of payments and maintenance. And together, you’ll begin building equity instead of continuing to rent.

However, co-buying comes with challenges too. If one person wants to move out or sell their share, it can complicate things. Financial disagreements can also arise, especially if someone can’t keep up with their share of the payments or wants to manage the home differently. That’s why a written agreement is critical.

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Financing a Home Together

Co-buyers typically apply for a mortgage together. Lenders look at the combined income and credit histories of all applicants. However, it’s important to know that the lowest credit score in the group can impact your approval and the interest rate you receive. All co-borrowers are equally responsible for the full loan, regardless of individual contributions.

At MortgageWorks, we help you understand the financing options available to co-buyers. These include conventional loans, FHA loans with lower down payments, and VA options if one of the buyers is a qualifying veteran. We also guide you through the best way to take title—such as joint tenancy or tenants in common—depending on how you want ownership to be structured.

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The Importance of a Co-Ownership Agreement

Before you close on a co-owned home, it’s essential to create a written co-ownership agreement. This document outlines how costs will be shared, what happens if one party wants to move or sell, how repairs and responsibilities will be handled, and how profits from a future sale will be divided. A real estate attorney can help draft this agreement. At MortgageWorks, we can connect you with trusted local professionals who handle these documents regularly.

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A Local Example from Indio

Recently, we helped two schoolteachers in Indio who had been renting separate apartments for years. By co-buying, they were able to purchase a 3-bedroom home and reduce their combined monthly housing costs. They share expenses, take turns with household tasks, and plan to turn the home into a long-term investment property. Their success is a great example of how thoughtful planning can lead to financial empowerment.

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Let's Explore It Together

If you're considering buying a home with someone you trust—whether it's a friend, family member, or partner—MortgageWorks can help you make a confident, informed decision. We’ll walk you through the financing, help you prepare for the process, and make sure you’re ready for homeownership as a team.

Call Art Alvarez today to schedule a co-buyer consultation. Your answers are on the house. 760-969-5023

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.