Posted on: 01st Jun, 2011 02:27 am
I own a condo which is free and clear. I've paid off the mortgage in full! :-) But now my parents are facing financial problems and I want to help them by taking out a loan using the condo title. Will I get a loan using the same condo? What type of loan will I qualify for?
You will be able to get a loan using the condo as a collateral as the property is free and clear. However, in order to get a loan, you should have stable income and excellent credit scores. In order to qualify for a conventional loan, you need to have a credit score of 700-720 whereas for a FHA loan, you should have a credit score of 600-620.
Depending upon your credit score and income, you may qualify for either a conventional loan or a FHA loan.
Depending upon your credit score and income, you may qualify for either a conventional loan or a FHA loan.
jannet, you can either apply for a regular refinance loan or take a home equity loan. if you know a reputable lender, get the facts on each type of loan and decide which makes better sense for you. keep in mind that condominium units are unique, in that the complex in which one is located must be on an "approved" list that will allow the lender to grant a loan. you'll need to make sure your condo association is cooperative enough to provide the appropriate information to your lender - hopefully they'll do what they need to do.
