Ok, here's the thing. I have 1 acre of property. There are 2 homes on this one acre of property. Both houses had insurance on it but I let the insurance go on the other house. The house I live in however, still has insurance. So lets say I'm gonna refinance my existing 1st and 2nd mortgage. Could I add the other house into the refinancing deal or do I absolutely have to have insurance on it before I can do anything with it?
2007-05-18 07:56:31 · 4 answers · asked by wildstorm_films 1 in Business & Finance ➔ Renting & Real Estate
They will not mortgage a property without insurance. Period. You will have to present proof of insurance for both residences by closing.
2007-05-18 08:00:44 · answer #1 · answered by wizjp 7 · 1⤊ 0⤋
If the second house is considered as an improvement to the property and included in the appraisal, and it would be unless it was a mobile home, the lender would require you have the it insured too.
2007-05-18 08:04:23 · answer #2 · answered by linkus86 7 · 0⤊ 0⤋
Whether or not you have insurance on a property is not relevant to its value in a refinancing situation. However, once you get involved in having a lien (mortgage) on that property, you can expect that a lender will require insurance coverage on it in order to protect their collateral.
2007-05-18 08:00:26 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
well it depends on the company you are refinancing with.
they might offer a certain program for the one house that is insured.. so ask your mortgage officer..
2007-05-18 10:01:23 · answer #4 · answered by BettyBoopGirl 5 · 0⤊ 0⤋