Mortgage options in northern virginia?

Question

My sister and I jointly own an 88 acre property in northern virginia that we both want to build homes on. The deed is in both of our names. Since the property is in both of our names, will I have to be on her mortgage? can we even do this without subdividing the land? this land was left to us by our father when he died.

Answer 1

If you jointly own the property, and each want to obtain a mortgage to build a house on the property, a bank would most likely require both owners of the property to be on the mortgage.  For example, if only one party was on the mortgage and the home went into foreclosure, the other property owner would still have interest in the land, but not the house.  A bank, or other financial institution, would not want to take that risk, especially in the current economy.  A bank would want to know that if they had to foreclose on the home, then they would have immediate, free-and-clear title to the property (less any other liens).

However, if the property is in both your name and your sister's name, and you are both listed on any mortgages, there would be no need to subdivide the property.  But, it is questionable as to whether the locality would allow two separate houses to be built on the same parcel of property.  That would be a question for the city or county in which the property is located.