
If you’ve decided it is time to move in with the love of your life, congratulations! But between the champagne and your first couple’s visit to Ikea, it is essential to reserve time to carefully consider how best to enter into this new phase of your relationship and, perhaps, this new phase of life.
Ideally, cohabiting with a romantic partner will be a fulfilling personal decision and a strategic financial one. Still, in New York City, where even renting can entail investing thousands of dollars up front, couples who have not married yet, or do not plan to at all, need to approach cohabitation with their eyes wide open. The first and most important question is whether to rent or buy.
Ideally, cohabiting with a romantic partner will be a fulfilling personal decision and a strategic financial one. Still, in New York City, where even renting can entail investing thousands of dollars up front, couples who have not married yet, or do not plan to at all, need to approach cohabitation with their eyes wide open. The first and most important question is whether to rent or buy.
In this article:
Renting Versus Buying as an Unmarried Couple
As a rule, it is always best to choose the option that makes the most sense for you financially, both as individuals and as a couple. There are also pros and cons to renting and buying as an unmarried couple.In New York City’s competitive real estate market, many middle-income earners, even those with solid credit histories, struggle to qualify for mortgages. As a result, teaming up with a romantic partner is often all it takes to finally come up with a down payment and qualify for financing.
On the flip side, purchasing property, especially a first property, is routinely ranked as one of life’s most stressful events, and it can strain even the best relationships. In New York City, where buying a home is even more complicated and expensive than in most other U.S. cities, the strain on couples is often even greater. For this reason, many unmarried couples, especially those who have not yet merged their finances, choose to rent before buying.
Another common reason to rent before buying is cost savings. After all, couples who rent together are often able to save together, at least more easily than couples living apart with roommates. As a result, for couples who haven’t yet been able to save money for a down payment, renting first can also be a great way to prepare for an eventual purchase.
Another common reason to rent before buying is cost savings. After all, couples who rent together are often able to save together, at least more easily than couples living apart with roommates. As a result, for couples who haven’t yet been able to save money for a down payment, renting first can also be a great way to prepare for an eventual purchase.

Pursuing Financing as a Single versus Joint Applicant
Whether you’re living in a common-law relationship, engaged, or married, there is little difference on the rental side of the market. Whatever your status, your combined yearly income will need to meet or exceed 40 times the monthly rent; and if it doesn’t, you’ll need to find a cosponsor. By contrast, if you decide to buy and haven’t tied the knot, you’ll have two options.If you’re an unmarried couple, you and your partner will have the option of submitting a joint or single application for a mortgage. In most cases, even unmarried and engaged couples opt to apply for financing jointly, especially if both members of the couple have an income. In addition to increasing one’s chances of being approved for a mortgage, couples who combine their incomes will qualify for a higher level of financing.
However, there are some circumstances when pursuing a single application may be preferable. For example, if one member of the couple has a significantly higher credit score than the other, only the highest score will be considered. By contrast, if a couple applies jointly, the credit decision will typically be based on the lower of the two credit scores. Even if they qualify based on the lower score, this may lead to a higher interest rate and exclude them from other potential advantages, including first-time buyer programs that include closing cost assistance.
However, there are some circumstances when pursuing a single application may be preferable. For example, if one member of the couple has a significantly higher credit score than the other, only the highest score will be considered. By contrast, if a couple applies jointly, the credit decision will typically be based on the lower of the two credit scores. Even if they qualify based on the lower score, this may lead to a higher interest rate and exclude them from other potential advantages, including first-time buyer programs that include closing cost assistance.

Protections for Unmarried Couples Who Buy Together
If you’re moving in with your sweetheart, you likely won’t want to consider the possibility that you might eventually split up or that one of you might die. Still, it is always important to plan ahead, especially if you’re buying as an unmarried couple.The most important decision will be how to “take title.” This happens when you get to the final contract stage of the home-buying process. There are three basic options: sole ownership, joint tenancy, or tenants in common.
Sole Ownership
In the case of sole ownership (also referred to as “tenants by the entirety”), only one member of the couple will have their name on the title documents. For couples, especially unmarried couples, this is rarely advisable. If, however, the mortgage is only in one member of the couple’s name, this can be a strategic way for the couple financing the property to protect their long-term financial interest.
In the case of sole ownership (also referred to as “tenants by the entirety”), only one member of the couple will have their name on the title documents. For couples, especially unmarried couples, this is rarely advisable. If, however, the mortgage is only in one member of the couple’s name, this can be a strategic way for the couple financing the property to protect their long-term financial interest.
Joint Tenancy
The second option is known as joint tenancy. In this case, each member of the couple owns equal shares in the property, and it is assumed that if they ever do split up, any profits or losses from the sale will be equally shared. Joint tenancy also offers a few other built-in protections. First, if one member of the couple dies, the other automatically inherits the property, even if there is a will indicating that their assets should be distributed in some other way. This is known as the “right of survivorship.” Second, in the case of a joint tenancy, both tenants (i.e., both members of the couple or former couple) must give permission before the property can go on the market.
The second option is known as joint tenancy. In this case, each member of the couple owns equal shares in the property, and it is assumed that if they ever do split up, any profits or losses from the sale will be equally shared. Joint tenancy also offers a few other built-in protections. First, if one member of the couple dies, the other automatically inherits the property, even if there is a will indicating that their assets should be distributed in some other way. This is known as the “right of survivorship.” Second, in the case of a joint tenancy, both tenants (i.e., both members of the couple or former couple) must give permission before the property can go on the market.
Tenants in Common
The third option is known as tenants in common. In this case, couples can split the ownership 50/50 or come up with a different arrangement (e.g., if one member of the couple invested more money in the property, they can opt for an uneven split instead). In addition, if one member of the couple passes away, there is no guarantee the shares will go to the remaining tenant. Although this type of title arrangement is common, when unmarried couples split up, this title arrangement frequently is the source of major disputes.
To avoid risking a “partition action” (i.e., a legal process used to help determine the future status and division of a property when tenants in common can’t do so on their own), unmarried couples who enter into a tenants in common arrangement are advised to draw up a written property agreement before closing any joint real estate deals.
The third option is known as tenants in common. In this case, couples can split the ownership 50/50 or come up with a different arrangement (e.g., if one member of the couple invested more money in the property, they can opt for an uneven split instead). In addition, if one member of the couple passes away, there is no guarantee the shares will go to the remaining tenant. Although this type of title arrangement is common, when unmarried couples split up, this title arrangement frequently is the source of major disputes.
To avoid risking a “partition action” (i.e., a legal process used to help determine the future status and division of a property when tenants in common can’t do so on their own), unmarried couples who enter into a tenants in common arrangement are advised to draw up a written property agreement before closing any joint real estate deals.
While there are some risks associated with buying together as an unmarried couple, in most cases, the benefits of buying still far outweigh the risks, making it a smart financial move for individuals and couples. That said, if you’re at all uncertain, it may be less stressful and financially advantageous to rent before taking the plunge of joint buyers.
New listings with upcoming open houses
Downtown
514 East 11th Street, #2A
$700,000
East Village | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

514 East 11th Street, #2A (Douglas Elliman Real Estate)


London Terrace Towers, #9K
$995,000
Chelsea | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

London Terrace Towers, #9K (Compass)

35 West 9th Street, #4C
$1,850,000
Greenwich Village | Cooperative | 2 Bedrooms, 1 Bath
Open House: Sunday, April 27

35 West 9th Street, #4C (Compass)

48 Bond Street, #4B
$2,995,000
NoHo | Cooperative | 2 Bedrooms, 2 Baths | 1,551 ft2
Open House: Sunday, April 27

48 Bond Street, #4B (Compass)

River Lofts, #2F
$3,150,000
Tribeca | Condominium | 2 Bedrooms, 2.5 Baths | 1,604 ft2
Open House: Sunday, April 27

River Lofts, #2F (Corcoran Group)

One York Street, #10C
$3,795,000
Tribeca | Condominium | 2 Bedrooms, 2 Baths | 1,674 ft2
Open House: Sunday, April 27

One York Street, #10C (Compass)

Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Midtown
420 Beekman Hill, #10H
$395,000
Beekman/Sutton Place | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

420 Beekman Hill, #10H (Compass)
10 Park Avenue, #10R
$550,000 (-2.7%)
Murray Hill | Cooperative | Studio, 1 Bath
Open House: Sunday, April 27

10 Park Avenue, #10R (Sothebys International Realty)
The Devon, #2M
$1,075,000
Murray Hill | Condominium | 2 Bedrooms, 1 Bath | 915 ft2
Open House: Sunday, April 27

The Devon, #2M (Olshan Realty Inc)

(Common roof deck)
The Parc Vendome, #3I
$1,295,000 (-5.8%)
Midtown West | Condominium | 1 Bedroom, 2 Baths | 1,196 ft2
Open House: Sunday, April 27

The Parc Vendome, #3I (Sothebys International Realty)
Monogram New York, #14G
$1,706,000
Midtown East | Condominium | 1 Bedroom, 1 Bath | 716 ft2
Open House: Sunday, April 27

Monogram New York, #14G (Douglas Elliman Real Estate)
Uptown
293 Riverside Drive, #2A
$450,000
Riverside Dr./West End Ave. | Cooperative | Studio, 1 Bath
Open House: Sunday, April 27

293 Riverside Drive, #2A (Compass)
Lincoln Guild, #2JW
$710,000
Lincoln Center | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

Lincoln Guild, #2JW (Compass)

Morningside Gardens, #21D
$725,000
Morningside Heights | Cooperative | 2 Bedrooms, 1 Bath
Open House: Sunday, April 27

Morningside Gardens, #21D (Compass)
375 West End Avenue, #6B
$1,335,000
Riverside Dr./West End Ave. | Cooperative | 2 Bedrooms, 2 Baths
Open House: Sunday, April 27

375 West End Avenue, #6B (Ann Ferguson LLC)

The Royal York I, #E9D
$1,450,000
Lenox Hill | Condop | 2 Bedrooms, 2 Baths | 1,250 ft2
Open House: Sunday, April 27

The Royal York I, #E9D (Serhant)
The Normandy, #1G
$1,596,000
Riverside Dr./West End Ave. | Cooperative | 2 Bedrooms, 2 Baths
Open House: Sunday, April 27

The Normandy, #1G (Compass)

Sherman Tower East, #18F
$1,695,000
Lenox Hill | Cooperative | 2 Bedrooms, 2 Baths
Open House: Sunday, April 27

Sherman Tower East, #18F (The Agency Brokerage)


The Apthorp, #5H
$5,595,000
Riverside Dr./West End Ave. | Condominium | 4 Bedrooms, 3 Baths | 2,582 ft2
Open House: Thursday, May 1

The Apthorp, #5H (Brown Harris Stevens Residential Sales LLC)


Brooklyn, Queens, and the Bronx
Concourse Towers, #9T
$359,000
Bronx Other | Cooperative | 1 Bedroom, 2 Baths
Open House: Sunday, April 27

Concourse Towers, #9T (Brown Harris Stevens Residential Sales LLC)
Saxony Towers, #5E
$388,000
Jackson Heights | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

88-11 34th Avenue, #5E (CORE Group Marketing LLC)
Willoughby Walk, #1410
$499,000
Clinton Hill | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

Willoughby Walk, #1410 (Corcoran Group)

Cobble Hill Towers, #4A
$675,000
Cobble Hill | Condominium | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

Cobble Hill Towers, #4A (Corcoran Group)

140 Eighth Avenue, #6J
$935,000
Park Slope | Cooperative | 1 Bedroom, 1 Bath
Open House: Sunday, April 27

140 Eighth Avenue, #6J (Compass)


23 North Elliott Place, #4
$950,000
Fort Greene | Condominium | 2 Bedrooms, 1 Bath | 800 ft2
Open House: Sunday, April 27

23 North Elliott Place, #4 (Corcoran Group)


359 Sixth Avenue, #3
$1,195,000
Park Slope | Cooperative | 2 Bedrooms, 1 Bath | 1,020 ft2
Open House: Sunday, April 27

359 Sixth Avenue, #3 (Corcoran Group)


2 Grace Court, #3H
$1,350,000
Brooklyn Heights | Cooperative | 2 Bedrooms, 1 Bath
Open House: Sunday, April 27

2 Grace Court, #3H (Corcoran Group)

1048 Flushing Avenue, #4L
$1,395,000
Bushwick | Condominium | 3 Bedrooms, 3 Baths | 1,071 ft2
Open House: Sunday, April 27

1048 Flushing Avenue, #4L (Corcoran Group)

Park Slope Gardens, #C4A
$1,450,000
Park Slope | Condominium | 2 Bedrooms, 2 Baths | 915 ft2
Open House: Sunday, April 27

Park Slope Gardens, #C4A (Compass)

516 Classon, #1B
$1,650,000
Clinton Hill | Condominium | 3 Bedrooms, 2 Baths | 1,530 ft2
Open House: Sunday, April 27

516 Classon, #1B (Compass)


361 Sixth Avenue, #1
$1,995,000
Park Slope | Condominium | 2 Bedrooms, 2 Baths | 1,200 ft2
Open House: Sunday, April 27

361 Sixth Avenue, #1 (Compass)


719 Sixth Avenue, #1
$2,200,000
South Slope - Greenwood Heights | Condominium | 3 Bedrooms, 2.5 Baths | 2,235 ft2
Open House: Sunday, April 27

719 Sixth Avenue, #1 (Compass)


402 Pacific Street, #1
$2,250,000
Boerum Hill | Condominium | 3 Bedrooms, 2 Baths | 1,977 ft2
Open House: Sunday, April 27

402 Pacific Street, #1 (Corcoran Group)


Would you like to tour any of these properties?
Just complete the info below.
Or call us at (212) 755-5544
Would you like to tour any of these properties?

Contributing Writer
Cait Etherington
Cait Etherington has over twenty years of experience working as a journalist and communications consultant. Her articles and reviews have been published in newspapers and magazines across the United States and internationally. An experienced financial writer, Cait is committed to exposing the human side of stories about contemporary business, banking and workplace relations. She also enjoys writing about trends, lifestyles and real estate in New York City where she lives with her family in a cozy apartment on the twentieth floor of a Manhattan high rise.