Loan on uninsured investment property

[Orlando Glez-Jorge]

Is it possible to get a loans on a paid off investment property that does not have  homeowners insurance?

If it is, please name the lender that does it?

thank you in advance for your answer

[Earl White]

I highly doubt any institutional lender, big or small, will provide a loan without insurance. It is a written requirement in every mortgage I've ever seen. Also - you probably wouldn't want to close on the property without insurance as you would also lack protection.

What is the reason you can't secure insurance? The better question is to figure out how to get insurance and resolving the reason that is preventing it.

[Patrick Roberts]

It's highly unlikely that you'll find something like this, and if you do, the max loan is likely to be no more than the value of the land minus any demo costs. A lender would have to be a fool to lend on collateral that wasn't protected - if the house is lost in a fire or whatever, the loan is unsecured at that point and is basically credit card debt. 

Also, if you currently own a property that is not protected by insurance, I strongly recommend that you reconsider this strategy. Trying to save money by foregoing insurance is playing russian roulette. Most of the time you'll be fine, but when something bad eventually happens (with enough exposure over time, you are virtually guaranteed to have something bad happen), the outcome is likely to be catastrophic. 

[Derek Brickley]

Hey Orlando,

Long story short - no.  We do not, and I've never heard anyone who does.  However, you can secure an insurance policy during the process of refinancing if there is not currently a policy.

[Luka Milicevic]

Would you lend money on a property that doesn't have insurance? 

My terms would be 100% interest paid up front before the loan is issued....

[Jay Hurst]

Quote from @Orlando Glez-Jorge:

Is it possible to get a loans on a paid off investment property that does not have  homeowners insurance?

If it is, please name the lender that does it?

thank you in advance for your answer

 @Orlando Glez-Jorge   Is the property not insurable?  And I am sure you know, but just in case I will explain why you cannot get a loan without insurance. if the house was to burn down and there was no insurance the lender would have no way to get paid back. That is why the mortgage company is listed as the mortgagee on a home owners policy so they have a claim to insurance funds being paid out.  

[Julia Lyrberg]

It’s very unlikely you’ll find a lender willing to provide a loan on a property without homeowners insurance—it’s a standard requirement for good reasons. Insurance protects both you and the lender from potential losses due to damage or liability issues. I’d recommend looking into insurance options, as it adds valuable protection for your investment.

[Brandon Croucier]

Are you trolling BP? 0 Chance.

Cmon, pay for insurance or just don't own real estate.

Trying to gain an extra 2-3% ROI and risk your entire principal is just stupid.

Don't be cheap, get insurance.

[Chris Seveney]

@Orlando Glez-Jorge

Plenty of lenders will lend on this - if you go to Facebook and search for lenders with 100% financing with financing spelled incorrectly, they say they lend at 3% and loan amounts from $5,000 - $50,000,000

These lenders will approve you all day long, then have you send them $5,000 upfront. Then you find out they are a scam. Maybe one actually lends to a property without insurance.

An actual lender - of course not.

[Jacob Sherman]

what is the reason it can't be insured ? 

[Mohammed Rahman]

Most lenders will require homeowner's insurance, even hard money lenders. 

Why would anyone give a loan against an asset when there's no insurance policy in place?

That's like throwing your money into a can of gasoline and hoping it survives a possible spark.