Can I use my land as collateral for someone else’s home loan?
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Can I use my land as collateral for someone else’s home loan?
I obtained 10 acres of land in my name
recently. My long time partner and I
wish to buy a home for this property.
My credit is terrible and his is
perfect. Our income is not an issue. I
made mistakes during my first divorce
and took all the debt with no way to
pay it. Can I use my land for the home
loan in his name or is he required to
be on the deed as well?
Asked on December 27, 2017 under Real Estate Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Legally, you can use anything as collateral for any loan IF the lender will accept it. So there is no legal need for him to be on the deed for this land to used as security or collateral; you just need a lender willing to do this. Loans and their terms are voluntary for lenders--you can't force them to lend to you or accept any given collateral, but can just offer to them and see if they are interested.
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