Qualifying

• Unmarried people taking out a mortgage loan first must qualify. Being unmarried affects some applications. Lenders can require that each individual applicant must meet income requirements for the mortgage. In other words, the lender does not allow the applicants to submit their combined income for consideration.
  
  

Joint Tenants

• Survivorship needs consideration when taking out a mortgage. "Joint tenants with rights of survivorship" in a contract initiates an automatic property transfer if one of the mortgage holders dies.
  
  

Taxation

• The Internal Revenue Service tax code allows taxing a surviving partner estate tax on the part of the property already owned. The IRS can consider the deceased as the sole property owner, putting the entire property value taxation on the second owner. Keeping accurate records showing each party's contribution to the mortgage payments and taxes offers financial proof in the event of an untimely death.
  
  

Form 1098

• Filing Form 1098 with the IRS shows the interest paid and other expenses related to mortgage payments, which can be used as deductions on your income tax. If the unmarried people on the mortgage do not file a joint tax return, deciding how to use the deduction is a consideration. One individual can use the deduction one year and another individual can use the deduction the following year.
  
  

Contracts

• Signing a contract before taking out a mortgage offers benefits to unmarried people. Including details such as financial responsibility in the event of separation or any other kind of partnership dissolving can help offer financial protection for all mortgage holders. The contract can also include contingency options if the house sells, explaining how the profits derived from the sale pay out.
  
  

Sale

• Selling the house when unmarried people have a joint mortgage requires the consent of all mortgage holders. If the living arrangement does not work out and one of the parties moves out, someone still needs to pay the mortgage. The remaining individual might decide to sell the house to get out from under the mortgage payment, but unless all mortgage holders agree to the sale, it cannot take place.