Mortgage application and deed question

[Stx14]

I will be applying for a home construction loan soon and have a question regarding my land.   I own 50 acres clear and free and will be surveying out 3 acres of the property to build my house and use as collateral.  Will I need to get a new deed and title insurance for those 3 acres even if I already have the deed and title insurance on the 50 acres as a whole.   My loan check list asks for the lot property deed.   Any advice would be appreciated!

[StartingOver10]

Just my opinion, but I would think you want the deed to match the collateral you are pledging, eg the 3 ac and not the entire parcel. There will be a mortgage lien placed on the land and house. If you don't have a corresponding deed then it could create issues with the loan process. An attorney and your loan officer would be able to give you guidance for your specific loan. Talk with the title attorney too. Don't pledge all of the land. JMO.

[me12345]

Yes, If you are going to get a mortgage for the home and the land, you will need a smaller lot, 50 acres is too large for most lenders to lend on for a primary home, so you will need a new deed for the smaller parcel.

Thanks,