I have a mortgage with seller financing. The closing was July 27, 2009. The house appraised at $363K. I paid $312K. The balance is $308K. Is it possible to get a home equity loan for $10K from a commerical bank, even though the original mortgage is being held privately? Any ideas how to go about this? Would it be a case of just applying as usual?
You can certainly call a lender and inquire. There is no requirement that you have a first lien loan where you get your home equity loan.
The biggest inhibitor here will be your equity position. You may need a current appraisal which will cost you, and then you have to know what the equity requirements are. Fewer lenders go up to 100% any longer. Many lenders have lost money, as have homeowners, based on the premise that real estate values only go up. If the requirement is that you have say 20% equity, that would mean you could have only $290K borrowed against the home. Your first lien exceeds that already, meaning no equity is available.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
You can certainly call a lender and inquire. There is no requirement that you have a first lien loan where you get your home equity loan. 