Posted on: 01st Jul, 2011 01:00 pm
I want to purchase a home that is subject to a life estate. Can I get a new mortgage or do I need to do this all cash?
Welcome graham,
As far as I know, you will be able to qualify for a new mortgage using the property as a collateral though it is subject to life estate. However, it will be better if you could inform your lender about the life estate.
As far as I know, you will be able to qualify for a new mortgage using the property as a collateral though it is subject to life estate. However, it will be better if you could inform your lender about the life estate.
You'll be able to mortgage the property, yes; but the Life Estate clause means you need for the person with the life estate to be a participant in the financing. By all means, let the lender know upfront that this is the case; it ought not to deter them from granting the loan, though it'll be a slightly more complex process for both the lender and for yourselves as the borrowers.
Nevertheless, it can be done.
Nevertheless, it can be done.
