If you paid for the property [land] and its 100% Can you give a mortgage without a job?

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Do you have a friend who owns 20 acres and the land is paid. He wants to rent a house to buy a 60k investment. He has no job, he can get the property as collateral for a loan?
She wants to buy, but not obtain a loan. You do not want a contract of countries. But as I have a mortgage to a land contract, I would not pay my mortgage and him? Is not the tenant of the owner if the land contract is done? That said, I would pay the mortgage and it is for them to have a clean title?

13 Comments
  1. Reply
    Greg S
    January 28, 2011 at 8:11 am

    You need to have collateral of some kind, the deed for the land may be considered that, but then there is the risk if things don’t work out he could lose the land as well.

  2. Reply
    Peter J
    January 28, 2011 at 9:07 am

    yes

  3. Reply
    33thirtythree33
    January 28, 2011 at 9:27 am

    You mean an equity loan.

    I would required that the property to be certified surveyed that the encumbered lot is not land locked.

  4. Reply
    xtina
    January 28, 2011 at 9:39 am

    yes, you might have to hunt down a lender. it prob. won’t be one of the big conservative banks.

  5. Reply
    Stephen T
    January 28, 2011 at 10:01 am

    If the land is paid for but doesn’t bring in income then he can’t use it. Loans need to be repaid so banks look at income, not assets when approving them.

    your best bet is to call the bank and speak with them directly.

  6. Reply
    chatsplas
    January 28, 2011 at 10:46 am

    Possibly, but not probably.
    Tricky.
    Needs good credit rating.
    Without visible means of support, it will be VERY difficult even with the collateral.

  7. Reply
    curse08
    January 28, 2011 at 10:58 am

    Things are a lot different than they used to be. You can’t get a loan on a home w/o a job. Guidelines are so strict right now that there is no way someone will give a loan w/o showing the ability to repay that loan. He will have to pay cash for the 60K home if he wants it. Maybe if you have 60K in reserves and an 800 credit score someone may take a risk but I would doubt it. My suggestion would be to get a small job to show income for the purpose of the loan.

  8. Reply
    Janet P
    January 28, 2011 at 11:29 am

    No, of course not, he has no way to repay the loan. They will not give him money knowing that he has no chance to make even a single payment.

  9. Reply
    Tina Marie in North Mexico
    January 28, 2011 at 12:08 pm

    Yes he can put the land up as collateral and secure a new loan. But if the note becomes delinquent then he will lose it all. Once the bank or loan co. gives him the money there will be a lien on his property.

  10. Reply
    fishlakeguy
    January 28, 2011 at 1:04 pm

    No. Even an Equity loan requires a method to make the payments [a job]. If he submits a profitable business plan for “renting out” the property, and the bank accepts it, he may get it, but employment is still usually required in case it becomes vacant. Banks want to loan money, but don’t want to run a business.
    If he has “liquid assets” [savings], and enough of it, they might also consider it if he secures the mortgage with them, possibly in a CD at their bank.

  11. Reply
    bob k
    January 28, 2011 at 1:11 pm

    Call your bank. They will give you an answer that’s better than asking here.

  12. Reply
    MadMan
    January 28, 2011 at 2:10 pm

    No you cannot unless you pay back the mortgage and the HE. If you try to, you will not be able to deliver the title to the house because the mortgage etc. will be outstanding.

  13. Reply
    Freeport77541
    January 28, 2011 at 2:44 pm

    if someone you never met before approached you and asked you to buy them a new plasma tv on your credit card and they promised to give you $ 20 a week would you trust them ?

    same deal

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