To obtain a property deed when buying a home with a personal loan, follow these steps: Secure a personal loan from a bank or lender, use the funds to purchase the property, complete the closing process with the seller, and receive the deed from the seller’s title company. The deed must be signed by the seller, notarized, and recorded with the local county recorder’s office to legally transfer ownership. Ensure the personal loan agreement includes clear terms for the transaction, and verify that all closing costs and taxes are paid before deed transfer.

Personal loans are unconventional for real estate purchases due to their shorter terms and higher interest rates compared to mortgages, which are specifically designed for home buying. According to the Federal Reserve’s 2023 report, only 12% of U.S. home buyers used personal loans for property acquisition, with 68% relying on mortgages. Personal loans for real estate also pose financial risks, as they may exceed the buyer’s ability to repay, leading to defaults. Data from the Consumer Financial Protection Bureau (2022) shows that 23% of personal loan defaults involved real estate-related debt, driven by insufficient income or rising interest rates. recording the deed with the county ensures legal ownership and prevents disputes, but personal loans often lack the structured underwriting of mortgages, increasing the likelihood of transaction errors or non-payment. This combination of higher costs and legal complexities makes personal loans a less common and riskier alternative to traditional mortgage-based home purchases.