I want to pay off all bills with a home equity loan from property bought for investment. Paid cash and dont have any mortgage payments. I recieve rent monthly from tenants, am on unemployment, and recieve ssi monthly. Can you help me?
Answer:
It will depend on your total rent income and SSI payments. You will need to provide 2 years of income tax returns to prove the rental income. As long as your income and credit are good enough you should be able to get a loan.
4 comments
Huntsman says:
October 6, 2011 at 10:14 am (UTC 0)
Rental income?
Have you been putting this in your taxes?
If so, it may be enough for you to qualify to take a mortgage out of your home.
Although this is an expensive way to get cash, since you have to pay closing costs – which can easily run into the thousands.
Also remember the #1 rule in retirement: No loans
Bash Limpbutt's Oozing Cyst© says:
October 6, 2011 at 10:17 am (UTC 0)
You don’t have to have an existing mortgage to take out an equity loan on the house. In fact, not having an existing mortgage on it will significantly increase the odds of approval and the amount that you can borrow.
On non-owner-occupied property you may be limited to 60% to 70% of your equity in the property as opposed to 80% to 90% for owner-occupied properties but other than your ability to repay there’s no reason why it would be denied.
Landlord says:
October 6, 2011 at 10:23 am (UTC 0)
It will depend on your total rent income and SSI payments. You will need to provide 2 years of income tax returns to prove the rental income. As long as your income and credit are good enough you should be able to get a loan.
Top Gun says:
October 6, 2011 at 10:57 am (UTC 0)
Called a line of credit against your home, just make sure you have enough rental money coming in to pay the monthly payment!