Home equity loan declined

Posted on: 31st Jul, 2009 08:37 pm

i recently applied for a residential home equity loan. the deed is under my mothers', myself, and 3 siblings. only me and mother live at the residence. bank declined loan because they said that everyone would have to live at the residence in order for them to approve. she said it was a "texas law" . i had previously been told as long as they signed on the loan consenting for the equity loan it was ok. .....so i dont know what is right or wrong ..any help ?????????

Total Reply : 5

Hi ecarrillo,

In my opinion, you should speak to few other lenders and check out what they have to say in this regard. In my opinion, you should be able to get a home equity loan in your name if you are staying in the property. You can even speak to the lenders of this community and seek a no obligation free mortgage consultation from them. This will let you know whether or not you would get a loan.

Thanks

jameshogg

Posted on: 01st Aug, 2009 01:36 am

Hi Ecarrillo,

Probably, the bank is offering an owner occupied mortgage. That is, the mortgage borrowers will have to occupy the property as their primary residence. Now, you've said that your mother, your siblings and you have your names on the deed. And, your mother and you stay on the property. But I think the bank requires your siblings to stay on the property if their names are to be there on the loan.

May god bless you.

Samantha