What are the qualification for LTV loans and where are they obtained?

Question

We are close to spending our mutual fund (20k) on a house (appraisal value is 56k). This will leave us completely broke, except a few hundred to pay utilities-we want to act fast on this house. We are wanting to take out an LTV loan, but we don't have a mortgage since we're buying it outright.. how would that work?

Also, neither of us have a "stable" work history since we're students. Is that a problem if we own the house and want to take out money against it?

The LTV loan would be for minor repairs to the house.

Answer 1

First, I think you have some terms confused. LTV means Loan-to-Value. Every loan has an LTV. I think you mean to ask about an equity loan.

If I understand you correctly, you are buying a house appraised for $56k for only $20k, which you will get by liquidating a mutual fund. So what you want to know is, can you qualify for a home equity loan to finance some repairs.

Qualifying for a home equity loan is like any other mortgage. You would qualify based on your income, credit history, employment history, equity, assets, and reserves. Assuming everything else is in order, you have good equity (100%) but your biggest problem will be inconsistent employment history.

Talk to a few lenders. It doesn't cost anything to have them qualify you (if they do try to charge an "application fee" hang up). I recommend Julie at http://www.primelendingonline.com

Good luck.

Answer 2

I am going to answer part of your questions. 1st LTV in an acroynom for Loan To Value. which is a precentage. Example house is worth 100,000 and you have a mortgage of 80,000 your LTV is 80%. 2nd question I think you are asking is will the bank loan you any money to fix it up? The Bank (or Lender) basis lending money on a couple things, ability to pay, do you have a job? and what part of your income are you already spending on other payments that show up on your credit report. Next do you pay back the money you have and had agreed to from the past. Again look at the credit report, and last the colladeral what is the value of the house,
You need to find your self a good Mortgage Banker and have them walk you through how to do what you want, and/or there are non-profit groups that your area may have. They may have some grant money available for your purpose. In my area the names would be Neighborhood Housing, Community Developement Counsel, your city may have an affrodable housing department and try this site http://www.fanniemaefoundation.org/. The first thing you need to do is get a little studing done before you make any commitments that could turn out to being costly. Good Luck

Answer 3

Check out this link and see if it helps:

http://en.wikipedia.org/wiki/Loan-to-value

Good luck!