How Many People Can Be on a Mortgage?

While there is no legal limit on the number of people you can have on a mortgage, most lenders will only allow up to four people on a single mortgage. When multiple people go in on a mortgage together, the lender will need to check if all applicants qualify for the loan. To do so, lenders use an automated underwriting system to review each application. This software can usually only support up to four applicants simultaneously. When there are more than four joint applicants, mortgage underwriting must be done manually, which adds to the complexity of the process.

With an ever-changing housing market, sharing a mortgage with multiple people is becoming more common. In fact, 62% of buyers said they purchased and shared ownership of their home with at least one other person. When considering a joint mortgage shared with multiple people, ask lenders “how many people can be on a home loan together” before you apply. Some lenders may accept more co-applicants than others.

Joint mortgage loan requirements

When multiple people apply for a joint mortgage, each borrower must meet the lender's loan qualifications. The lender will check your credit score, combined debt-to-income ratio (DTI), proof of citizenship and work history, among other things.

In addition, the loan you choose may have restrictions on occupancy and who can become a co-borrower.

Conventional loan: You can co-borrow with a parent, sibling, significant other, ex-spouse or friend who either occupies the home or chooses not to live in the home with you.

FHA loan: You can only co-borrow with a relative, spouse or significant other who can provide proof of relationship. Some lenders may accept a close friend as a co-borrower.

VA loan: Co-borrowers must be the legally married spouse of an eligible borrower or be another VA-qualified individual that will occupy the home.

USDA loan: You can co-borrow with anyone as long as they occupy the property. 

Regardless of the requirements for each type of loan program, all co-borrowers are equally responsible for the mortgage and must be included on the title as a co-owner of the property. All co-borrowers will have the option to choose how property ownership is shared as tenants in common. 

Benefits of having multiple people on a mortgage

More buying power

A 2023 Zillow housing trends report revealed affordability was a primary reason for co-buying. Forty-four percent of co-buyers cited that purchasing a home with multiple people was more affordable than buying one independently. 

When multiple applicants apply for a mortgage, lenders consider each applicant’s income and debts to determine buying power and creditworthiness. Having multiple borrowers on a mortgage application not only offers a more affordable way to finance a home, but also may provide borrowers more buying power if they are able to take out a bigger loan for a larger property or a property in a high-cost area.

Easier to qualify for a mortgage

Lenders tend to view multiple incomes on a mortgage application as more reliable. Having multiple borrowers with good credit and solid employment histories can strengthen the application, making qualifying for a home loan easier and likely with more favorable terms. 

Zillow’s report also shared that 46% of co-buyers cited the ease of qualifying and getting mortgage approval as a reason for co-buying.

Risks of having multiple people on a mortgage

Potential credit impact

While co-borrowers on a mortgage can agree to tenancy in common, which is when they own and pay for different percentages of the property, they’re still equally responsible for ensuring the payments are made consistently and on time. If one or more borrowers stop paying their share of the loan, the other borrowers must cover the costs to avoid negative impacts on their credit and foreclosure.

Interest rates are based on the lower middle score

When multiple people apply for a mortgage together, lenders use the “lower middle score” of each applicant to determine the interest rate for the mortgage, along with other financial factors like DTI, employment history, and down payment amount. For example, say your credit scores from the three credit bureaus are 748, 746, 732, and the other applicants’ scores are 697, 683, 679 and 651,648, 643. The rate will be based on the lower middle score of the three applicants, which is 648. If all people on the mortgage have decent credit scores, you may receive better interest rates. But if one applicant has a lower credit score, the interest rate may be higher.

Possibility of co-borrowers changing their minds

Financing a home purchase with a mortgage loan is a long-term investment. One or more co-borrowers on the mortgage may eventually want to change their living situation or sell the home, which can complicate the situation for the remaining borrowers. 

Removing a co-borrower from a mortgage almost always requires refinancing the mortgage in the remaining borrower’s name, which pays off the existing loan and releases the other party from their obligations. The lender will then reevaluate the remaining borrower’s creditworthiness and financial stability to ensure they can make the payments on their own.

How do you apply for a mortgage with multiple borrowers?

When applying for a mortgage with multiple borrowers, lenders will require the following from each co-borrower:

• Permission to run a credit check
• Proof of income in the form of recent pay stubs, bank statements, and tax returns
• Proof of monthly debt obligations
• Proof of assets
• Identification in the form of a driver’s license and social security number or an individual tax identification number (ITIN) 

In addition to meeting the lender’s and loan’s qualifications, all borrowers must be present at closing to sign the official documents.

Under the right circumstances, applying for a mortgage with multiple people is one way to potentially help you reach your homeownership goals more quickly. If you’re planning to become a homeowner with multiple people, make sure everyone in your group knows what they may qualify for by getting pre-qualified with us Zillow Home Loans.*

*An equal housing lender. NMLS #10287