Posted on: 01st Feb, 2010 09:14 am
Currently have 2 homes, both have mortgages. One is at the beach with ~$130,000 left on the mortgage. The other is in the city with $550,000 mortgage. City house will list for ~$1M, but I have not yet put it up for sale. Want to move out of city. Found a place (~%30,000), but do not have cash for the down payment. Thinking of seeking HELOC for a $250,000 down payment and seeking mortgage loan for the balance while my city house is prepped and put on the market.
Clear as mud? Make sense? Do lenders do this?
Clear as mud? Make sense? Do lenders do this?
Hi,
"Thinking of seeking HELOC for a $250,000 down payment and seeking mortgage loan for the balance while my city house is prepped and put on the market."
You cannot take a HELOC and use the money to put down on a mortgage. The money you pay for the down payment has to come from your own funds. You cannot borrow money to put down on a loan. If someone gifts you the money you can definitely use it for the down payment.
"Thinking of seeking HELOC for a $250,000 down payment and seeking mortgage loan for the balance while my city house is prepped and put on the market."
You cannot take a HELOC and use the money to put down on a mortgage. The money you pay for the down payment has to come from your own funds. You cannot borrow money to put down on a loan. If someone gifts you the money you can definitely use it for the down payment.