Posted on: 27th Aug, 2011 01:12 am
I own land that has a rental property situated on it. I own it outright, so I only pay taxes and insurance on it. Can I use the value of this property/land as collateral towards an FHA loan on a home I would like to buy?
Welcome sarahjoyguthrie,
As the property is free and clear of any kind of liens, you can use it as a collateral in order to secure a FHA loan provided you meet all the required criteria of the lender.
As the property is free and clear of any kind of liens, you can use it as a collateral in order to secure a FHA loan provided you meet all the required criteria of the lender.
Only owner-occupied properties are eligible to be financed with an FHA loan. You seem to be talking about a vacant piece of property here, Sarah. There's no way you occupy it, unless you can document that the tent is your full-time home.
Hey Sarah,
Unfortunately you will not be able to use an Investment or Non-Owner Occupied property as collateral on an FHA loan. Only primary residence will be permitted by FHA. I hope this helps...
Unfortunately you will not be able to use an Investment or Non-Owner Occupied property as collateral on an FHA loan. Only primary residence will be permitted by FHA. I hope this helps...
Just make sure that the property is under your name for you to be able to use the property as a collateral and also you have to determine first if you are eligible for an FHA loan.
Generic doesn't even fit for that one...
Quite honestly, if someone isn't sure about property being "under your name," then that's not a person who ought to be asking questions on a forum but who ought to be sitting down for a long, introspective and critical discussion with an attorney...someone who can speak and be heard (hopefully correctly).
Quite honestly, if someone isn't sure about property being "under your name," then that's not a person who ought to be asking questions on a forum but who ought to be sitting down for a long, introspective and critical discussion with an attorney...someone who can speak and be heard (hopefully correctly).