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Can I use property I own outright as collateral on a FHA loan?

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sarahjoyguthrie Joined: 27 Aug 2011 Posts: 1 1.34 Dollars($)	Posted: Sat Aug 27, 2011 1:12 am    Post subject: Can I use property I own outright as collateral on a FHA loa Like 0 Dislike 0 I own land that has a rental property situated on it. I own it outright, so I only pay taxes and insurance on it. Can I use the value of this property/land as collateral towards an FHA loan on a home I would like to buy?
adonis Joined: 22 Oct 2005 Posts: 10569 Location: ALASKA 1090.22 Dollars($)	Posted: Sun Aug 28, 2011 8:11 pm    Post subject: Like 0 Dislike 0 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. _________________ Procrastination is the enemy of your financial success
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Mon Aug 29, 2011 9:15 am    Post subject: Like 0 Dislike 0 Only owner-occupied properties are eligible to be financed with an FHA loan. You seem to be talking about a vacant piece of property here, Sarah. There's no way you occupy it, unless you can document that the tent is your full-time home. _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044
JKennedySLG Community Expert Joined: 01 Apr 2009 Posts: 408 Location: New Jersey/New York 20.05 Dollars($)	Posted: Sun Sep 04, 2011 6:46 am    Post subject: Like 0 Dislike 0 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... _________________ James Kennedy New York/New Jersey (732)979-7409 Hard Money & Stated Income Loans First Time Home Buyers (540+ Credit)
Guest	Posted: Mon Sep 05, 2011 12:25 am    Post subject: hi sarahjoyguthrie! Like 0 Dislike 0 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. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 12376 Location: bloomfield, ct 58.49 Dollars($)	Posted: Mon Sep 05, 2011 1:05 pm    Post subject: Like 0 Dislike 0 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). _________________ George M. Akerley Mortgage Underwriter/Consultant Word of Excellence- Writing/Editing/Proofreading 860-221-5044

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