It is possible for a homebuyer to be named on the title and not the mortgage. There are several reasons why someone may choose to do so; for example, a homeowner may not want to be on the mortgage if they have an adverse credit history from a low credit score or a past bankruptcy.
If that’s the case, your lender may give a better deal to the person you are buying a home with and exclude you from the mortgage but still have you co-own the property. That is a perfectly viable option.
If you decide to go that route, the lender will require that you subordinate your interest. You will sign a document, usually called a Subordination Agreement, with written confirmation that even though you are not a borrower, you are taking a backseat to the lender’s lien on the property and that your interest in the property is subject to the superior lien of the lender.
This means that even though you are not personally liable on the lender’s Promissory Note, the lender can still foreclose and decimate your interest. That is obviously a cause for concern, but a subordinated loan could be a good option if you understand all its implications. If you aren’t sure or if your realtor is unable to give a satisfying explanation, make sure you consult with a competent real estate lawyer.
FAQs
It is possible for a homebuyer to be named on the title and not the mortgage.
Can two people be on title but only one on mortgage? ›
No – you can have only one spouse on the mortgage but both on title. Both owners of the home, typically being spouses listed on the deed, do not have to both be listed on the mortgage.
Does an attorney have to prepare a deed in Maryland? ›
The grantor or grantee are free to draft and record the deed themselves. However, if you do decide to hire someone to work on your behalf then you can only hire an attorney to prepare the deed, because it is the practice of law.
Is Maryland an attorney state or title state? ›
What is a title state in real estate closings?
| State | Attorney State or Title State? |
|---|
| Maryland | Attorney state |
| Massachusetts | Attorney state |
| Michigan | Title state |
| Minnesota | Title state |
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This is absolutely possible; however, the spouse not on the title would need to sign some forms. A spouse would sign a disclaimer deed and a non-spouse would sign a quitclaim deed to say they are not claiming any interest, any ownership, to the property.
What happens if your spouse dies and you aren't on the mortgage? ›
But, if the surviving spouse is not listed on the mortgage, there must be a transfer of ownership in order for the surviving spouse to keep the house. Once ownership is transferred to a surviving spouse or any other heir, it is up to them to continue making payments until they decide what to do with the house.
Can you add someone to a title without refinancing? ›
Adding a co-borrower requires refinancing.
You can't add a co-borrower without refinancing your mortgage.
Does it matter whose name is on the mortgage in a divorce? ›
Does It Matter Whose Name Is on the Mortgage in a Divorce? While the name on the mortgage can influence who is responsible for the debt, it doesn't necessarily dictate how the property is divided.
Can you add someone to your mortgage and title? ›
You just got married and now you want to add your new spouse to the mortgage or title of your home. Putting your spouse on title (adding them to the ownership) is a simple process. All you need to do is have a grant deed prepared, sign it in front of a notary public, and then have it recorded.
How do I remove someone from a deed in Maryland? ›
To take someone's name off a deed, a new deed must be prepared to transfer the property from all of the current owners to all of the remaining owners. Similarly, to add someone to a deed a new deed must be prepared to transfer the property from all current owners to all new and current owners.
In Alabama, Arizona, Arkansas, Illinois, Kentucky, Maryland, Michigan, Montana and South Dakota, the lender has the choice of either a mortgage or deed of trust. In any other state, you must have a mortgage.
Does Maryland allow a transfer on death deed? ›
10. Do transfer on death deeds work in Maryland? No, Maryland does not recognize transfer on death deeds. These types of deeds allow for property to transfer to a named recipient as soon as the property owner dies.
Is Maryland a two title state? ›
Currently, the Maryland MVA prints a two-part, paper title. The first part, the Maryland Certificate of Title, is mailed to the owner. The second part, the Security Interest Filing (SIF), is printed only when a lien has been filed against the title; it is mailed to the lien holder.
Does Maryland require a real estate attorney? ›
Technically, you don't need a lawyer during the home buying process if everything goes smoothly with the seller and your realtor.
Who chooses title in Maryland? ›
Only licensed title insurance companies, agencies and producers can sell title insurance in Maryland. You can buy title insurance directly from a title insurance company or a title agent who sells title insurance for a company. WHO CHOOSES THE TITLE COMPANY? The buyer chooses the title insurance company.
What if my wife is not on the deed or mortgage? ›
In Community Property States
In a community property state — let's say California — your ownership rights are automatic for a house acquired during your marriage. Your home is equally shared between you, fifty-fifty — no matter how it's titled. You can change this only by giving up your rights in the home.
Can my boyfriend add me to the deed of his house? ›
It's perfectly legal to co-own a house with someone to whom you're not married or to add someone to your deed to whom you are not married. You can put another name on the deed even if they didn't sign the mortgage, provided the lender agrees.
Can a non-borrowing spouse be on title for FHA? ›
According to the FHA official site, "If required by state law in order to perfect a valid and enforceable first lien, the non-purchasing spouse or non-borrowing party with ownership interest in the property may be required to sign either the security instrument or documentation indicating that the individual is either.
