Is there anyone more excited than a prospective homebuyer making a go of it on their own for the first time? No spouse, no significant other, nobody else enjoying the satisfaction (and tax benefits!) of owning a home? Of course, that excitement can also induce anxiety when only your initials appear on all those transaction documents, and only your name is on the dotted line as buyer. And it’s a scenario that’s getting more common as the number of people buying a house on a single income is growing.
For instance, 18% of recent buyers were single females and 9% percent were single males, according to the 2021 Home Buyers and Sellers Generational Trends Report, a study produced by the National Association of Realtors Research Group. First-time buyers, incidentally, made up 31% of all purchasers last year.
Because single applicants rely on just one salary and one credit profile to secure a loan, the mortgage process can be a bit more involved than it is for two-income applicants. Having some sort of income protection—such as disability insurance or a mortgage safety net—offers peace of mind should you lose your job.