Is Applying for a Joint Mortgage during a Slow Economy a Good Idea?

Using a joint mortgage can be a great way to secure the money you need for a house. During a slow economy, money is tougher to come by at the bank. Therefore, you may have to take measures that you would not normally take in order to find the money you need. If you are considering obtaining a joint mortgage during a slow economy, here are a few things that you need to consider. 

Increased Approval Rate

During a slow economy, it is more difficult to get approved for a mortgage. You will have to have a better credit score and be able to prove that you make more money. When you are applying for a loan by yourself, this might be difficult. Your income might not be sufficient enough on its own to gain approval. 

When you add someone else to the mortgage on your behalf, this will help the process go through. You will be able to provide more income for them to use in their ratios. This will also provide them with a longer credit history to evaluate. If you choose the right person to go into a mortgage with, it can substantially help your chances of approval.


During a slow economy, the lenders will provide you with extra incentives to do business with them. When the economy is slow, the Federal Reserve usually lowers the interest rate. The banks then pass those savings on to you and sometimes will throw in additional incentives. While it may be harder to get approved, if you are worthy of a loan, they will make it worth your while. This can result in some substantial savings compared to when the market is doing fine. 

Potential Issues

While a joint mortgage can help your chances of getting approved, that does not mean that it is without some potential problems. Any time you enter into a joint mortgage, there is a possibility for problems down the road. When you get into a joint mortgage, you are putting a lot of faith in the other person and in your relationship with them. While it would be nice if relationships never had problems, in reality, this simply is not possible. If you enter into an agreement with someone and your relationship goes sour, you could run into significant problems. 

If you are in a joint mortgage with someone and the other party decides that they want out, you may have to buy them out or sell the property to give them their share. While you should not avoid a joint mortgage just for this possible scenario, it is something to consider.


The decision to go with a joint mortgage should be made after much consideration on your part. During a slow economy, it could be the tool that gets the job done for you. However, you should not rush into a joint mortgage before you consider the possibilities down the road.