Posted on: 15th Jun, 2011 09:41 am
i own a condo that has equity. i want to buy a new house, but need a down payment. i want to keep my condo and rent it out. should i refinance my condo to a 7-year arm w/ lower % rate and use equity for a down or just take a straight equity line of credit out?? not sure which way to go here. any advice would be appreciated!!!
You would need to have 30% equity in the condo, after you had pulled out money for down payment. If you do not have the 30% equity, then the lender will not count your rental income and would require you to cover both of the mortgage payments. Do you have enough equity?
Yes, definitely have the 30% equity in the condo. I bought my condo 10 years ago and have never touched any equity. :-)
If you would like, you can email me or contact me off this page, and I can take a look at your scenario to see if you would be able to get a loan, and what type of program would be best.