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Process for getting a mortgage for a home already paid off

Posted on: 20th Dec, 2009 01:30 am
I'm wondering what it takes to get a loan for a home that I'll fully pay for using my savings and home equity line of credit. I'd like to be able to get a 30 year mortgage after I close escrow. The amount of the loan will be equal to the amount of the home equity line of credit that I'll be using (about 1/2 the home value). Also, how long before I can apply for the mortgage?

Thanks,
-Moe
Hi moe_bahri,

If you have the required credit score and income, you will be able to apply for a home loan immediately. I hope you are planning to get a conventional loan. In that case, you should have a credit score of 700-720. Apart from this, the lender will also check your debt to income ratio before approving a loan.
Posted on: 20th Dec, 2009 11:21 pm
thanks for your reply. with my credit score (close to 800) and my debt to income ratio i'll definitely qualify for the loan. i am using the home equity line of credit merely to be able to pay cash and win the deal on a foreclosed home, but i'd like to replace the home equity loan with a conventional fixed mortgage. i had heard that you can get a loan for the home that is paid off after 6 months and not immediately.
Posted on: 03rd Jan, 2010 09:20 pm
I would suggest you to speak to some of the other lenders and check out what they have to say regarding this matter. As far as I know, you will be able to get a loan as the property is already paid for.
Posted on: 04th Jan, 2010 09:50 pm
my home is paid for, and i need to borrow money for personal reason, and home repairs. how do i get a home loan with fairly bad credit?
Posted on: 29th Jan, 2010 04:38 pm
how, or where can i get a home loan, if my house is paid for. i don't have great credit, but i have personal reasons i need a loan for, and for house repairs. can you help me?

jerri buchanan
Posted on: 29th Jan, 2010 04:41 pm
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