More people than ever are buying homes together — whether they’re unmarried couples, close friends, or family members co-buying with each other. From a mortgage standpoint, it doesn’t matter and it’s completely fine. We look at your income, credit, assets, and debts, and structure the loan accordingly. Being married or unmarried doesn’t change much on the lending side.
What does change are the legal and tax considerations. This post walks you through the four key areas so you can go into the process informed — and know when to bring in other professionals.
How You Hold Title
When you buy a home together, you’ll need to decide how you want to take ownership. In New Hampshire, this is handled by the title company’s attorney at closing. The two most common options for unmarried buyers are:
- Tenants in Common — Each person owns a specific percentage of the property. Most couples choose 50/50, but you can structure it differently — for example, if one person is contributing more to the down payment. If one owner passes away, their share goes to their estate (not automatically to the other owner).
- Joint Tenants with Rights of Survivorship — You each own an undivided interest in the whole property. If one person passes away, the other automatically inherits their share — without going through probate.
The title company’s attorney will explain both options and help you decide what makes sense for your situation. I’m a mortgage broker, not an attorney — so I’ll leave the legal guidance to them.
How the title company fits in: In New Hampshire, a title company is assigned to your transaction. You can choose which one to use — if you don’t have a preference, Your REALTOR or Lender can recommend one. The title company handles the title search, prepares your deed, coordinates the closing numbers with me, accepts your closing funds, walks you through all the loan documents at closing, and manages all post-closing work.
What Happens If One Person Passes Away
This ties directly to how you hold title:
- Tenants in Common: Your share goes to your estate and is distributed according to your will — or by state law if you don’t have one. The surviving co-owner does not automatically receive it.
- Joint Tenants with Rights of Survivorship: Your share passes automatically to the surviving owner, outside of probate.
This is one of the main reasons many unmarried couples speak with an estate planning attorney before closing. It’s also worth reviewing your will, beneficiary designations, and any partnership agreements if you have them. A quick conversation with an attorney now can prevent a complicated situation later.
Tax Considerations
This is where things get a little more nuanced for unmarried co-buyers. Here’s what you need to know:
Standard deduction amounts (2025): The standard deduction for a single filer is $15,750. You can only benefit from itemizing if your total deductible expenses exceed the standard deduction.
The math for two unmarried buyers: The right strategy depends heavily on the total amount of mortgage interest and property taxes you’re paying. Here are three scenarios to illustrate:
- ~$20,000 combined (interest + taxes): Splitting doesn’t make sense in most cases. Each person’s share (~$10,000) falls well below the $15,750 standard deduction, so neither benefits from itemizing their half. Better for one person to claim all $20,000 and clear the threshold — the other takes the standard deduction.
- ~$30,000 combined: This is the “it depends” zone. Each person’s share (~$15,000) is just under the $15,750 standard deduction on its own. But if either person can stack other deductions on top — charitable contributions, sales tax, or other allowable items — they might exceed the standard deduction. Whether splitting makes sense here requires a real conversation with a tax preparer.
- ~$40,000 combined: Splitting works well for both people. Each person’s share (~$20,000) clearly exceeds the $15,750 standard deduction threshold, so both benefit from itemizing — no extra deductions needed to make the math work.
Who actually paid matters — a lot: According to IRS Publication 936, mortgage interest deductions are based on who actually paid the expense — not just whose name is on the mortgage. This means the bank account the payment comes from can determine who gets the deduction.
- Joint account: The IRS generally treats payments from a joint account as a 50/50 split.
- One person’s individual account: If one person makes all the payments from their own account, they may be able to claim the full deduction — which even at ~$20,000 in tax & interest clearly exceeds the $15,750 standard deduction threshold and provides a meaningful tax benefit.
Because of this, some unmarried homebuyers are intentional about how mortgage payments are structured and which person claims the deductions. The right approach usually depends on who has more “other deductions” — things like charitable contributions, state and local taxes, or business deductions. Consult with a tax consultant to get it right! And make decisions before making your first mortgage payment!
One more detail on Form 1098: Your lender will issue a Form 1098 (mortgage interest statement) typically under the first borrower listed on the application. That doesn’t control who claims the deduction — the IRS allows the deduction to be allocated based on who actually paid, as long as it’s properly documented on your tax return.
I’m not an accountant and this isn’t tax advice. But how you structure your mortgage payments is worth a quick conversation with a tax preparer before closing — it’s easy to set up correctly from the start and much harder to reconstruct after the fact. IRS source: Publication 936 (irs.gov/publications/p936)
Contribution Amounts and Future Equity
If one person is contributing more toward the down payment, or will be covering more of the monthly payment, that’s something worth thinking through — and documenting — before closing.
Your options include:
- Reflecting the split in your ownership percentages (if using Tenants in Common)
- A written agreement between the two of you
- Or both
This is very common for unmarried buyers and the title company or an attorney can help you document it properly. It avoids potential disagreements down the road if the relationship or living situation changes.
Bottom Line
From a mortgage standpoint, two unmarried people buying together is straightforward. The lending process looks the same — we evaluate both borrowers and structure the best loan for your situation.
The areas that deserve some extra attention are legal (how you hold title, estate planning) and tax (how you structure payments). Both are manageable with the right professionals involved — and I’m happy to connect you with a title attorney or tax preparer if you need one.
Have questions? Reach out anytime — I’m always happy to talk through the specifics before you start the process.
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This post is for informational purposes only. It is not legal or tax advice. Please consult a licensed attorney and tax professional for guidance specific to your situation.
Bookend Lending LLC is a licensed independent mortgage broker in the State of New Hampshire.
Licensed by the NH Banking Department nmls 2557411.