If you have equity in your property, you can use it as downpayment or you can just have 2 mortgages. Depending on income and property equity, this can be done.

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I have very little income coming in but i own two houses out right without any mortgages. poor credit aswell. the house i want to get a mortgage on ( lower value house so smaller payment ) is a rental property and i'd use part of the rent to pay the mortgage so payment would be no problem. would a bank need me to have good income coming in to do this or would the fact that i own the house outright with out a mortgage ever be good enough?

why not just do a L2P or L2P wrap with the seller. You can then rent it out or even rent to own it without investing any of your money in case it does not work out you walk away.

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I was watching a show about repos on tv and was wondering if you have your car repossessed, but say it cost $10,000 and you paid a down payment of $7000 and financed the rest, would you get anything for the down payment you paid after they took it. i know you could probably pay the monthly payments and get it back, but i mean if you had lost your job and could not pay any more. also what about a mortgage. if your house is collateral and you have paid off 90% and could not make payments anymore would get you anything back?

You get back whatever they sell it for minus what you owe on it after they repo it. So say you bought a car, put 3,000 down and made payments and you only owed 2000$ left. Then they repo and they sell it for 5000. Subtract 2,000 from 5000 plus any repo fees (maybe like another 1000) and you would get 2000 back. This however almost never happens. There is never enough equity in a car and in fact it usually works like this. You buy the car for 10k with 3k down and now you owe 7k. Bank repos it and sells it for 5k. then they send you a bill for another 2k Thats how it USUALLY works.

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I have a large cd that matures in 2 yrs and was wondering if it can be used as collateral for a mortgage loan. it is size-able and i'd like to see it earn the money it was designed to earn but at the same time i may i want to buy a house and right now i'd have to use approx 65% of my income to make the monthly mortgage payments (which i think is too high a percentage for the bank to approve a loan). i'm thinking if they considered the cd as collateral that they would approve the loan. am i correct in this?

All you can do right now is submit for a prequalification from someone who isn't going out of business soon. US bank or BofA perhaps and see what they say. According to analysts, a 2nd wave of foreclosures is on us that will last 3 years with 8 million more houses hitting the market. If the CD matures in 2, you may have enough cash to buy a home outright.

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I make my first payment in a week. the appraised value is $70,000. when and how can i use this to help me secure a business loan? how does collateral work with a home mortgage?

You generally cannot. You cannot use as collateral what you do not owe. Collateral of what you own is the difference between what it's WORTH and what you OWE. If there is no difference, then you have zero.

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I have a 750 credit score, owe 264000 on my mortgage - no other debt, house is worth 330000. i have 500000 cash in the bank in cds and iras. i plan to pay off the mortgage in 4 years when the cds mature, but in the meanwhile i am paying 6.8% on my mortgage and only earning 5% on my cash. i have no job and cannot qualify for full doc. but i can manage my mortgage payments as i make money in unusual (and legal) ways. however i would like to find a rate of 3 or 4% that will be good for 4 years with no prepay penalty , after that it can adjust to 20% for all i care. i would be willing to sign the cds as collateral to pay off the debt in 2010. anyone know where i can get a better rate in this situation without paying any closing costs? thanks

Sorry can't be done. Currently we have a flat yield curve in the market so even short term arm loans 1,2,3, 5 etc are all running around 5.875-6.00% ish for full documentation loans. Given that you have to go No Documentation due to your job situation you'll be looking at about .5- 1.00 higher rate. Also since you have to go no doc you'll have to get a mortgage broker involved in the process and they'll charge you pretty fat origination fee. You can't show assets on a no doc loan so the lender will never know about them. There aren't any no employment verifcation, but verified asset programs out there either. Your home serves as collateral on the loan so pledging other assets doesn't make sense. Best bet is to just ride it out for now, and don't fall for option arm with a low teaser rate that swells up to 8-8.5% one or three months later.

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My husband and i are 1st time homebuyers. we have been preapproved for a house loan, but are not having luck finding what we want. we have toyed with the idea of building our own. what are the differences between getting a preapproved loan and buying a already built house and going through getting a construction loan? do you have to put money up front for a construction loan? do you make mortgage payments while the house is being built, or do you wait until the house is completed? is there a time frame that the house must be built within? if we were preapproved for a certain amount with a homebuyers loan, would we likely be preapproved for the same amount for a construction loan? what other differences should i know about? since we are first time homebuyers we do not have much collateral (we do have some savings, but not a ton), would that affect our ability to get a construction loan?

Your pre-approaval only applies to the loan type you requested. If you change loan types you must be pre-approved again fot that specific loan type. The most favorable option for you is called a "Construction/Premanent" or "One Step" loan. This loan combines both the construction loan and the permanent loan in one package so that you are not paying two sets of loan fees. Not all lenders offer this option so you may have to shop for it. If you will let me know which state you are in I can help you find a lender who offers this program. Your minimum down payment will be 5% of the sales price of the land and proposed construction costs combined. In addition, the lender will require you have sufficient funds for closing costs and, some lenders may require you have a reserve fund sufficient to cover any overruns or upgrades. This reserve fun does not have to be liquid. It could be your 401K. Some lenders will allow you to finance the estimated 5% reserve requirement if you put down a 10% downpayment. The loan works like this: The appraisal is completed using plans and specs to determine completed value. Your builder supplies materials specifications and a construction/draw schedule. The draws against the loan are given to the builder based either on percentage of completion or on a line item basis. Most lenders make the draw checks jointly payable to you and the builder so that you may maintain some control. You pay interest only payments on the funds as they are disbursed to the builder at whatever rate the construction term is set for. At the end of construction the loan converts to a permanent loan. This process will vary a bit from lender to lender. Some convert you at the same rate as your construction loan, some offfer you a float down option, lots of vartiety here. The normal construction term will range from 6 months to a year or longer on a big project. Good luck.

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Is it possible that if i purchase a house from the owner by taking over his mortgage payments etc... that if he had used the home as collateral on a totally separate third party loan and later on defaults, after ownership of the mortgage had already been transfered to myself, will the third party go after that person. or can/will they go after the house? and i end up getting stuck with his bill?

If the house was indeed used for collateral, then the 3rd party probably has a lien on the title, which will not transfer with the individual. If you are serious, you should pay for a title search to see what's up, but it sounds like it's probably not a good deal unless you can pay off the liens on the title.

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Is it against the real estate law for an agent to give his client money for personal needs (to make the mortgage payment), and have the client name the agent as the beneficiary on the deed of trust to the house as collateral for the cash loan? i'm sorry, i forgot to mention that i already own my home, i refinanced it to make repairs and have an agent who has listed it for sale. the agent helped me get the loan for the re-fi. the hard money loan came afterwards when the mortgage payments became more than i could afford so the agent offered to loan me money for survival until the house sold.

If you have any doubts (which it sounds like you do) you should first, consult an attorney; second, call the Real Estate commission of your state and question them. They have strict guidelines that brokers and agents must adhere to or their license may be suspended/revoked. When I purchased my first home, my agent lent me money to pay off a bad debt so I could qualify for my mortgage. I signed a promissory note and made my monthly payments. I am real estate broker, these days, and would NEVER think of loaning any of my clients money when they are in over their heads, let alone asking them to put my name as the beneficiary of the deed of trust (he/she can foreclose on you without going to court). This sounds 'fishy' to me. Like I said, consult an attorney IMMEDIATELY.

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I would like to obtain a small business loan, but think that's impossible these days without putting up some collateral. i own a house but still pay a monthly mortgage in other words i do not own it free and clear yet. my question is will the bank accept this as collateral since someone already has a right to the house in case i default on payments?

Depends on how much equity you have in the house.

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About three years ago we bought a new home. we were assured by the real estate agent that our old home would sell right away. three real estate agents and almost three years later the house is still not sold. we quit making payments in october of last year because we could no longer afford two house payments and were falling behind on our current home. we wanted the bank to take it!! in march 08 they filed for foreclosure, in may they filed for a default judgment. two days ago i received a letter in the mail from the courts saying the plaintiff dismissed the case with prejudice. i called the mortgage company and they gave me the run around saying they could not find my mortgage. finally after holding ten times for a total of over an hour the woman said she found it. she became very nasty because the loan was so overdue. i asked her why the foreclosure was stopped first she said it was to save my credit....come on. then she said that they were not going to sell my house for me and that the area's property values were rapidly declining and they would not get enough money for the amount i owe. she then told me that i had better do something fast (such as a short sale or make payments) because they are going to start garnishing wages. my questions are: how can they garnish if they dismissed their own case with prejudice? doesn't that mean they cannot sue again? why on earth would they dismiss with prejudice unless they had lost the original loan documents or something? can they really garnish without taking the house, or is the house collateral that they have to use to cover some or all of the debt? please help!! i plan on seeing an attorney friday, but i cannot stop thinking about this mess. thank you for your response bull. we did rent the house from april '05 to feb '06, they damaged the house so badly we spent five months remodeling. we swore we would never do that again lol. i just spoke with an attorney over the phone and he said they can garnish and probably will. so l guess we will try a shortsale and if that does not work he wants to do a chapter 7 bankrupty. ugh if anyone reading this is planning on buying a new home....sell your current home first!!!!!! do not trust a real estate agent who says they will sell the property fast!!! that is just real estate lingo for, "i would rather have a sure buy than an iffy sale".

Whether or not they foreclosed on you, they can still take you to court for the money you owe. They probably can't take you to court for a mortgage shortfall, since they haven't sold the place to find out what the shortfall will be, but they can cedrtainly take you to court for the mortgage payments you didn't make. Still, saying they will do it and actually doing it are two very different things. Personally I think the lady is just trying to scare you and since they have not done anything for years its likely they will not do this either. Note that eventually they will do something to get rid of you and at that time they may come after old monies you owe them but you'll just have to see how things work out. So, they almost certainly can come after you at least for the missed mortgage payments but I think they are just trying to scare you and since they can't seem to sell your house they probably won't do this either. PS - Since you still own the house and who knows when they may foreclose on it, why not rent it out. Really couldn't hurt you to rent it out and its a shame just to let the place sit there vacant for many years.