Can I be on the title but not the mortgage?
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.