Buying a home with parents or adult children is becoming more common across Texas. Whether you’re combining households to save money, care for family members, or invest together, financing a multi-generational home comes with unique mortgage considerations.

Before you start house hunting, it’s important to understand how lenders evaluate income, credit, debt, and property types when multiple borrowers are involved.

Can You Combine Income When Buying a Home Together?

In many cases, yes—but it depends on who is listed on the loan.

When multiple borrowers apply together, lenders may be able to use combined household income to qualify for the mortgage. However, every borrower’s financial profile matters. While higher combined income can increase buying power, lenders also review the full financial picture.

How Debt and Credit Scores Are Evaluated

When more than one borrower is on the loan, all debts from all borrowers are included in the debt-to-income ratio. This means student loans, car payments, credit cards, and other obligations from each applicant will be counted.

Credit scores also play a major role. Most loan programs use the lowest middle credit score among all borrowers to determine loan eligibility, pricing, and mortgage insurance requirements. One lower score can impact the entire loan.

Loan Options for Multi-Generational Homes

Several mortgage programs allow financing for homes designed to accommodate multiple generations, as long as the property meets loan guidelines.

FHA and Conventional Loan Options

Both FHA and conventional loans may allow:

• Larger single-family homes
  
• Homes with a mother-in-law suite or guest quarters
  
• Properties with a secondary living space behind the main home
  

In addition, borrowers may be able to purchase:

• Duplexes
  
• Triplexes
  
• Fourplex properties
  

As long as one unit is owner-occupied and the property meets program requirements, these options can be a practical solution for multi-generational living.

Property Guidelines Matter

Not every property qualifies for every loan program. Zoning, layout, and how the additional living space is classified can affect eligibility. It’s important to review property details early to avoid issues once you’re under contract.

Planning Ahead Is Key

Multi-generational home purchases involve more moving parts than traditional home loans. Reviewing credit, income structure, and property goals early can help ensure a smoother approval process and realistic expectations.

If you’re thinking about buying a home with parents or adult children, working with a local mortgage expert who understands Texas lending guidelines can make a significant difference.

Get Guidance for Your Multi-Generational Home Purchase

Buying a home together is a big decision, and the financing should support your long-term goals. Liberty Star Mortgage in Fulshear, Texas helps families explore the right loan options for multi-generational living.

If you’re considering purchasing a home for multiple generations, get in touch with Collette Horton to review your options and determine the best mortgage strategy for your situation.