Getting a New Loan - Loan Modification Forum

MRC123 · 01-16-2009, 10:46 AM

We know we can't purchase a house, but are walking on the current. My MIL owns her home free and clear, so would it be possible for her to use her house as collateral for a new loan for us? Just trying to explore all options here, without having to rent? Thanks everyone!

Moe Bedard · 01-16-2009, 11:14 AM

She would need to qualify for whatever loan amount that she is going to pull out of her house as equity and if it wasn't enough to purchase the house for you outright................then she may need to qualify for both loans on both homes and the one for you would be an investment property for her........ if you are on the loan to the current home that you are walking on........you will not be able to be on any new loans for at least 3+ years.

MRC123 · 01-20-2009, 11:24 AM

***----

The house we want to purchase is $174,500, her house is worth at least $270,000. She owns her home (paid off) all she pays is property taxes and insurance.

I am not sure what you mean by both loans, since her home is paid off.

Moe Bedard · 01-20-2009, 02:48 PM

you had not put any figures in your original post...........I said if it wasn't enough to cover the new house by paying cash for it outright then she would need to qualify for both.................but since she has enough equity in her home to take out to pay for the home for you in cash in full...........then she would just need to be able to qualify for the loan amount that she if pulling out of her home.

01-16-2009, 10:46 AM	#1 (permalink)
MRC123 Senior Member Join Date: Jun 2008 Location: Arizona Posts: 110 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Getting a New Loan We know we can't purchase a house, but are walking on the current. My MIL owns her home free and clear, so would it be possible for her to use her house as collateral for a new loan for us? Just trying to explore all options here, without having to rent? Thanks everyone!

01-16-2009, 11:14 AM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Getting a New Loan She would need to qualify for whatever loan amount that she is going to pull out of her house as equity and if it wasn't enough to purchase the house for you outright................then she may need to qualify for both loans on both homes and the one for you would be an investment property for her........ if you are on the loan to the current home that you are walking on........you will not be able to be on any new loans for at least 3+ years. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

01-20-2009, 11:24 AM	#3 (permalink)
MRC123 Senior Member Join Date: Jun 2008 Location: Arizona Posts: 110 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Getting a New Loan *---- The house we want to purchase is $174,500, her house is worth at least $270,000. She owns her home (paid off) all she pays is property taxes and insurance. I am not sure what you mean by both** loans, since her home is paid off.

01-20-2009, 02:48 PM	#4 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Getting a New Loan you had not put any figures in your original post...........I said if it wasn't enough to cover the new house by paying cash for it outright then she would need to qualify for both.................but since she has enough equity in her home to take out to pay for the home for you in cash in full...........then she would just need to be able to qualify for the loan amount that she if pulling out of her home. __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

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