Single Person House: How to Buy a Home by Yourself

Many people reach a point in their lives when they’re ready to settle down and buy a home. You may be tired of renting and ready to put that money toward a mortgage payment. But there’s one issue — you’re buying the house on your own.

Of course, there’s nothing wrong with a single person buying a house. If you’re ready to take the next step toward homeownership, you don’t need to wait for a partner or have one at all. A home is a good investment, no matter your relationship status. 

But there’s also no denying that it’s easier to qualify for a mortgage with two incomes. This article will explain how to purchase a single-person house and some tips for getting the best deal. 

Should a single person buy a house?

And if you’re reading this article, you may be wondering, “Can a single person buy a house?” The answer to that question is definitely yes — if you can afford the mortgage payments, there’s no reason why you shouldn’t buy a house.

It may be more challenging to purchase a home on a single income, but it’s definitely doable. In fact, according to data from the U.S. census, in 2021, 28% of the U.S. was made up of single-person households.

The pros and cons of buying a house as a single purchaser

As with any decision in life, there are pros and cons to buying a house as a single homebuyer. Let’s look at a few things you should consider before making the leap. 

Benefits of buying a house alone

Here are some of the biggest benefits of buying a house alone:

• You get to call the shots: Ever watched those couples arguing on HGTV about how to renovate their home? When you buy a house with a partner, there are certain compromises you have to make. But as a single home buyer, you don’t have a partner to compromise with. This means you can get the exact home you want, assuming it fits within your price range. 
• A financially sound move: Buying a home is a financially savvy move for any household. If you’ve been putting off homeownership because you aren’t in a relationship, this could be a mistake. You’re missing out on the opportunity to build equity in your home and create a secure financial future for yourself. You’ll never get your rent money back, but homeownership gives you the opportunity to build wealth just by making your mortgage payments.
• A home is an appreciating asset: Your home will likely continue to grow in value over the years you own it. Of course, it isn’t a guarantee that your home’s value will increase. But on average, homes do tend to appreciate in value. 

Challenges of buying a house alone

Buying a home on your own is a smart move, but that doesn’t mean it’s always easy. Here are some of the challenges that may come with buying a house on a single income: 

• It’s harder to qualify for a mortgage: Your mortgage lender will look at your annual salary to determine how much you can afford to borrow. The higher the income, the more you’ll qualify for. As a single borrower, you don’t have the benefit of combining your income with a partner’s income in hopes of receiving a larger mortgage. 
• It’s more difficult to save for a down payment: In addition, it’s easier to save for a down payment when two people are working toward that goal. It may take you longer to save for an adequate down payment on your own. 
• You may not get the exact house you want: If you earn a low or average income, you may have a more challenging time finding a place you like within your price range. You may find a home you can afford, but you may have to compromise on certain features like the home size or location. 

Tips for buying a home on a single income

Homeownership isn’t usually something you can just jump right into. Once you’ve decided that buying a home is right for you, you’ll need to do some preparation and planning before you can achieve this goal.

Making even a few small changes to your financial situation can make it easier to purchase a home on a single budget. If you’re thinking about buying a home on your own, here are some steps you can take to prepare. 

Have a strong credit history

When applying for a mortgage, it’s not enough to just get approved for the loan, you also want to qualify for the most favorable rates and terms. Securing a low interest rate means you’ll pay less money over the life of the loan.

To qualify for the best rates and terms, you’ll need to have a strong credit history and a high credit score. You can check your credit history by requesting a copy of your credit report from the three major credit bureaus – Equifax®, Experian and TransUnion®. 

All borrowers are entitled to receive one free report per year. When reviewing your credit report, look for any inaccurate information or derogatory marks. You can contact your lender and ask them to remove any incorrect information from your credit report.

If you want to find out what your credit score is, you can do this for free with Rocket Homes℠. You can create a new account or simply sign in using your current Rocket Account. Lenders look for a minimum credit score of 620, but if you want to qualify for the best rates, you should aim to get your score to 740 or higher.

Consider your DTI

Another factor your mortgage lender will consider is your debt-to-income ratio (DTI). Your DTI is the percentage of your monthly income that goes toward debt payments. Most lenders look for a DTI below 50%, but some lenders may require lower ratios for certain loans.

If your DTI is higher than you would like, you may want to focus on paying down debt first. Not only will this make you a more attractive mortgage applicant, but it’ll put you in a stronger financial situation when you do buy a home. 

Save your money

Buying a house is a lot more expensive than you might realize, which is why it’s essential to focus on saving as much as possible. You’ll need to make a down payment toward the home in most cases. Some lenders will accept down payments that are lower than 20%, but that usually means you’ll also have to pay for private mortgage insurance (PMI) if you’re getting a conventional loan.

In addition, you’ll need to account for closing costs, moving costs, property taxes, new furniture you may need to buy, and other expenses that come with buying a new home. If you’re having trouble saving for a house, you may need to cut some discretionary items from your budget. 

Determine what you want and what you can afford

Before you can start thinking about what you want in a home purchase, you need to figure out how much house you can afford. A home affordability calculator can be a valuable tool to help you figure this out. It isn’t perfect, but it can give you an idea of the types of homes you’ll be looking at when you start house hunting.

And keep in mind, when you buy a house, you’re responsible for any maintenance that comes with it. If your dishwasher breaks or the AC goes out, there’s no landlord to fix it for you. So be sure to budget for the cost of unexpected repairs and regular maintenance. 

Once you know what you can afford, you can start to think about what you want in a home. Do you prefer a condo or single-family home? Do you want a big backyard or a sizable kitchen? 

Jot down some ideas about the must-have features you’re looking for in a home. Taking a home buying quiz is another great way to narrow down what you want in a home. Once you begin working with a real estate agent, this will help them find houses that meet your criteria. 

Get preapproved

And finally, you want to get preapproved for a mortgage before you start looking at potential houses. Getting preapproved and working with a reliable real estate agent will make the home buying process much quicker and easier.

Once you get preapproved, don’t settle for the first offer you get. Make sure you shop around and compare pricing among different lenders. This will help you secure the lowest interest rate and could save you thousands of dollars over the life of the loan. 

The bottom line: A single person can buy property on their own

Whether homeownership is right for you shouldn’t be determined by your marital status. It’s all about what makes sense for you financially, and the answer to that question will be different for everyone. 

There’s no reason to hold off on buying a home just because you’re single. Buying a house on a single income may come with unique challenges, but it’s worth it in the long run. Be sure to check out Rocket Homes Home Buyer’s Guide for more information and tips when it comes to starting your home buying journey.

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