Updated over 2 years ago on . Most recent reply
HELOC with HO8 insurance
I am trying to pull equity out of my primary residence to use toward the purchase of an off market property. I've run into a pretty sizable hiccup in that the bank doesn't want to loan the money due to the insurance on my current home being HO8 as opposed to HO3. My current home is a completely modernized home but was originally built in the 1930s. Because of the age of the home there is only one insurance company in the state of Florida that will write a HO3 policy on the home but they are asking for $10K/ annually for premiums and even that is if the home has all wind storm discounts which mines will not get and it will take a prohibitive amount of time to get them. Is there anyway around this insurance thing for getting a HELOC? Is this something that all lenders ask? I trying to find out if I have better options than loose the deal or pay so much in insurance that the deal no longer pencils.