Can I use the money from my home equity loan as a down payme

0.10 Dollars($)

Can I use the money from my home equity loan as a down payment on a new (2nd) residence?....I currently live in property A, which I own and have built up about $65,000 in. I am purchasing property B and will make this my primary residence and rent out property A. Can I take out a home equity loan on property A and use the money as a downpayment on property B?

Guest 0.10 Dollars($)

Yes you can.

Marty

[Deleted promotional text as per forum rules. Thanks.]

smckaybiz · Posted: Sat Sep 06, 2008 6:09 pm Post subject:

Marty, if you really want to help why don't you read the forum rules before posting that garbage! Laughing

Welcome to the forum guest.

My first bit of advice would be to stay clear of spammy, I mean Marty.

You can use the equity in your home to do whatever you'd like. Although I have to tell you that you might not be able to borrow the full $65K in equity that you have. A lot of lenders have tightened up on their Loan to Value ratio's because of the declining home values. I'm sure there are still lenders willing to loan the full value of your home on a 2nd mortgage but you will probably pay the price with a much higher interest rate.

Just make sure that you will be able to cover all of your mortgage payments from the rent your collecting.

Best of luck!

helping_user · Posted: Mon Sep 08, 2008 1:19 am Post subject:

Yeah Scott, it seems that marty is all over again. But I think the moderators have removed the promotional text. Otherwise I'd thought of sending a pm to one of the moderators in this forum.

Well, this is in response to guest's query:

You can use the second mortgage on your home as a down payment in order to buy another property. Just make sure that you're able to make payments on both the loans taken against both the houses.

Thanks.

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