Sammy, you have part ownership.
I have done these many times.

what are my rights if my name is on the deed and not the mortgage? we are a unmarried couple,

Yes, absolutely. It happened to me last February. A young couple of first time buyers bought a Townhouse while unmarried. At closing both their names were on the Deed.

Common Law Marriage and Community Property make this a tricky question. Best to get an attorney - one who specializes in real estate and practices in Texas. The reason why you want to handle the loan this way will be necessary for an attorney to advise you properly.

Have a blessed day!
Ronda


Ronda Allen
Realtor, C.P.M.
RE/MAX Dallas Suburbs

After initially answering the question below and then reviewing others' comments, I did some additional research and here is what I found out:

- First and foremost you should consult with a real estate attorney to fully understand your right and liabilities that would arise from this situation.

- It can be done. It is usually done when one party has stable income and good credit and the other does not, or if one is steadily employed and the other is self-employed and the self employment history is hard to prove-up.

- Not all mortgage companies will agree to this. If they do allow it they will likely require you to sign something stating there lien on the house is superior to your claim to it. Also, they may qualify the loan in one name only but since there are two parties involved they may require the second party to sign some type of security agreement on the note.

- If you do it after the mortgage is signed then the mortgage company will have first lien position on the property and any of your rights are subsequent to their lien

- The mortgagee is the only one who can claim the interest deduction on income taxes

- You should both be able to claim 1/2 the real estate taxes paid on the property

- You may be unmarried at this time, but you may be considered a common law marriage if certain conditions are met. If there is a split then community property issues can arise, especially if both of your incomes go to pay the mortgage. Texas is a community property state and what one has going into the marriage they keep going out of the marriage ...and what is acquired during the marriage is community property. Community property can be tricky so be advised that potential issues could arise if there is a split.

- If the mortgagee passes away it raises serious questions as to who has legal claim to the property. You should likely establish something in writing (a will) that states the mortgagee's intentions for the property.

- It might be done if only one of you can qualify for the first time home buyer credit and can individually qualify for the mortgage.

- If the non-mortgagee has to declare bankruptcy it may not affect the mortgage on the home.

The bottom line is that it can be done, which may be the short answer you are looking for; but, there could complications in the event of a split or death of the mortgagee.

Hope this helps!

I have had several clients to do this. Not married yet, but want home to be in both names. Never anything said at closing.

Depends on the lender......

I have done this before. Unmarried couples and siblings buying homes together.......

If the lender doesn't want to do it.... You could simply deed 1/2 interest to the significant other after closing..... right there at the title company by the people who closed the loan.... and they can record it at the court house too.

Let me know if you have any more specific questions.... I have experience with this.

Yes, one of you can apply for the mortgage and assume financial liability of the home. Both of you can be placed on the property deed. However, you may want to contact a lawyer for issues that may arise in the future should you separate in the future without marrying. You will want to know your options on division of the property.

Hi Katie,

This is similar to a question I answered a while back. They asked about the mortgage in one name and two names on a deed, and whether foreclosure would hurt the person whose name was not one the mortgage. I think you can review it at this link: http://www.trulia.com/voices/Property_QandA/Do_I_need_to_rem…

Since there are similarities in the question I will paraphrase from that anwer...

Your best answer will come from an attorney, title company and/or the mortgage company.

Lenders typically want a first lien position, and having another name on the title but not on the loan would likely cloud the lender's first lien position. Because of this, I do not think a lender will allow a non-responsible party on the deed.

If this is permitted, another angle to consider is foreclosure. If the property gets foreclosed upon, the lender may only be able to pursue the responsible party for repayment of loan ...however, if it is foreclosed through traditional methods on the County Courthouse steps a judgment may go against both of you since two names were in title. A judgement would likely affect you in the future when you apply for a loan, rent an apartment, by another home, etc.

There may also be common marriage laws that might implicate one of you if you are together for a period of time and then separate. Although you may purchase the home in one name, you may be considered married by common law and, if so, then both of you may be considered liable for the mortgage ...especially if both of your incomes went to paying the for the loan.

I do not think a mortgage company would allow this, but they would be the one to tell you for sure. Further, an attorney is going to give you the clearest answer on any potential liability.