Posted on: 02nd Apr, 2007 11:02 pm
Can I use a Life Insurance Policy as an asset when financing my home
Welcome Davidc,
You can use the life insurance policy as asset when the policy matures. At maturity, you will be getting the entire amount your policy is worth. That becomes an asset for you.
When you are paying the premiums for the policy, the policy will not be considered as your asset to be shown to the lender who will finance your home.
You can use the life insurance policy as asset when the policy matures. At maturity, you will be getting the entire amount your policy is worth. That becomes an asset for you.
When you are paying the premiums for the policy, the policy will not be considered as your asset to be shown to the lender who will finance your home.
A whole life policy which has a cash value can be used as an asset which a lender will consider for your reserves. "Reserves" is the amount of money you will still have after buying the home and for some programs this is a requirement.
Term life insurance has no asset value.
Term life insurance has no asset value.
