Posted on: 15th Dec, 2010 09:17 pm
I was wondering if someone can guide on where I could find a sample LOC for a second home. The second home that we are interested in purchasing is about 2.6miles away. The current house size is about 1900sqft and the new house is much bigger, about 2400sqft. The reason why we are planning to buy this new home is because we have my niece, nephew, and other nephew with his wife who will be living with us and we need the bigger home. Both houses are in excellent location to my job. I have 3 renters that are interested in renting my current home(rent amount is about 95% of my current mortgage payment)
I appreciate your help!
Best,
MrFeb
I appreciate your help!
Best,
MrFeb
hi zekebashi!
welcome to forums!
if you already have a mortgage on one of your properties, then you won't be able to get another mortgage to buy a new property. however, if you plan to refinance your mortgage or take out a line of credit (loc) on your present property, then you should have equity in your property. you should contact the local lenders and apply for a mortgage refinance or loc.
feel free to ask if you've further queries.
sussane
welcome to forums!
if you already have a mortgage on one of your properties, then you won't be able to get another mortgage to buy a new property. however, if you plan to refinance your mortgage or take out a line of credit (loc) on your present property, then you should have equity in your property. you should contact the local lenders and apply for a mortgage refinance or loc.
feel free to ask if you've further queries.
sussane
You can purchase the other home as ong as you qualify for the mortgage.
To qualify you may be able to use rental income from the current home to offset any mortgage payments on that home. In order to use rental income, the mortgage on your current home must be less than 25% of the value of the house currently.
Getting a mortgage to purchase the other home is same as getting a mortgage for any other house. You need to have enough income to qualify carrying the mortgage on the old and the new house as well as any other monthly debts on the credit report.
To qualify you may be able to use rental income from the current home to offset any mortgage payments on that home. In order to use rental income, the mortgage on your current home must be less than 25% of the value of the house currently.
Getting a mortgage to purchase the other home is same as getting a mortgage for any other house. You need to have enough income to qualify carrying the mortgage on the old and the new house as well as any other monthly debts on the credit report.
You can get a Home Equity Line of Credit (HELOC) on your current home and use the money for anything you want, including paying cash for another home. I have a client that does that with the line of credit he got with his Reverse Mortgage. He uses his credit line to flip properties.
