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Who's name will be on deedusing someone else's credit?
Hello,
I am looking to buy a piece of land in Virginia. I plan on financing it until it is paid off.
I have the money, however my credit score is not yet good enough. My mother is willing to let me use her credit to help purchase it. She will not be putting ANY money towards this. However, I was curious to know if her name will be on the property AT ALL?.. I honestly, would like for everything to be in my name, especially if someone were to look it up.
Are there any risks on my end? Could she potentially sell it without me knowing?
If someone were to look up the property tax online, would they see both of our names, or only mine or only hers? Who's name will be on the deed when I pay it off?
She is not going to put ONE PENNY towards it... this is me working for my hard earned money to try to buy this..
Thank you.
14 Answers
- sunshine_melLv 711 months ago
Your mother cannot use her credit unless she's also on the loan; most lenders require anyone on a property loan to have a property ownership stake in said property too.
If you co-own it, you'll both need the other's permission to sell it.
- babyboomer1001Lv 711 months ago
I don't know what your mother is talking about. She cannot use her credit if you are going to finance a house. If you buy the property and you want to finance it or a portion of it, YOUR credit will be run. You mother is out of the picture, unless she plans on purchasing the land - out from under you. Don't involve her. You might still qualify with poor credit.
- Anonymous11 months ago
No, the whole point in using someone else's credit is so that the mortgage holder will issue the loan. However, since she's the responsible party for making sure payments are made, her name will be on the deed. Mortgage companies don't care who pays the monthly amount. They just want someone to be accountable if a payment doesn't arrive.
This sounds like a really bad idea, esp since you ask if she could sell without you knowing. NEVER make major purchases with a family member unless you fully trust them (even then it's not recommended).
- SlickterpLv 711 months ago
Her name will be on the deed and she will be a part owner. Can't use her credit and not have her on the deed. Once paid off, she can do a quit claim and give up her share.
- SlumlordLv 711 months ago
If she will be on the loan securing the property thenthe bank will insist she be on the deed as well as you (or they won't lend the money). If she could somejhow just gift you the money (possibly take out a loan on some asset she already owns and then gift you the money), then you could do it in just your name.
- curtisports2Lv 711 months ago
You cannot finance land. If there is a house on the land, you finance the entire parcel. If your mother's credit will be used, then she must sign papers that obligate her to pay if you do not. That makes it her property as much as yours and no lender is going to allow her name to NOT be on the deed.
If you want it to be all yours, then let it be all yours. Wait until your credit is good enough to do it on your own. How does it benefit her in any way to risk her good credit? If she wanted to get a loan in her name and she's signed as a co-borrower with you, she probably won't be able to get that loan. And you're worried about the risk on your end...no, she cannot sell without your knowledge or approval.
- Beverly SLv 711 months ago
If mom is the one who finances she will be on the Deed. No lender will allow her to finance it without her being the owner. If she is okay with it she can have you on the deed, & both names would show up.
Source(s): Mortgage lender since 1986 - EvaLv 711 months ago
Your mother can't get a mortgage on something she doesn't own. Her name has to be on the property. Getting a mortgage for bare land is difficult. You might better work on repairing your credit.