Getting Loan Using Life Insurance Cash Value as Collateral??

[Isaac Lewis]

Hi all, 

So I am trying to finance the purchase of a residential real estate property and I am looking to use my life insurance cash value as collateral to fund the loan, purchase the property, and then refinance to pay back the cash value. Has anyone ever completed a transaction this way and any tips or things to look out for?

[Mike S.]

@David New

Also by using a third party lender and not the insurance company, you should be able to deduct the loan interest as investment expense.

What type of life insurance do you have and from which company? Do a search on cash value life insurance line of credit (CVLOC) and you should get already some lenders. Some will only loan on certain type of policy and from certain insurance company while others will be more diverse. Shop around for the best term and rate.