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Revelate
Posts: 9,029
Registered: ‎12-30-2011
Re: High Loan to Value Companies

sccredit wrote:

I don't see how you can refinance the car without paying the principal down.  Why would a bank want to be undercollateralized from the very start when they don't need to be?


I'm not sure either from a straight financial perspective (though relationship building is certainly a factor); however, anecdotally some lenders (DCU, Penfed from the advertisements I've gotten) will do this, mainly to work with customers who are underwater on a current loan I suspect.

 

As an example from the DCU page

 

Qualified borrowers can finance up to 120% of retail book value or 120% of the purchase price, whichever is less

 

That said, with the BK on the books, it's hard to say if this meets "qualified" or not, but it's worth asking.

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