I would like to buy an investment property using the equity in my present home,without having to sell my present house as it's in an up and coming area. Any advice would be much appreciated.
2007-08-20 05:25:02 · 11 answers · asked by seren 2 in Business & Finance ➔ Renting & Real Estate
Re-mortgage your own home to raise the deposit on a buy to let place. Mind you, beware of those tenants out there. You cant tarr them all with the same brush, but loads are con artists. Struggling with one at the moment!
2007-08-20 06:00:59 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes you can. If you live in a dower state, you would need him to sign over any dower rights to the property you have now...if you didn't already have a pre-nuptial. It actually would be better to get a "line of credit" rather than a 2nd mortgage. The line of credit is better because you can use only what you need and pay on that amount rather than a full blown 2nd. The only reason I wouldn't use the equity in your home would be if that equity didn't cover the purchase amount of the investment property. However, if you don't have money to put down, a line of credit on your current home could provide you with those funds if you plan on financing the investment property. You really should talk to a mortgage broker and do the deal several different ways. You can then sit down and look at them side-by-side and make the best decision for your situation.
2016-03-17 03:16:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The best way to do this is to get a Home Equity LIne of credit on yoru current house. You will likely not need the whole amount so a HELOC is the best option for you for a couple of reasons:
1. HELOC is far cheaper as far as closing costs go compared to a refinance
2. You only pay interest on the amount you borrow against the HELOC instead of the whole amount that you likely won't be using.
Contacting your local bank or a big chain such as washington mutual or wachovia is the best way to get a HELOC.
I work with investors all the time and this is one way I recommend they leverage the equity in teh primary to buy other properties.
2007-08-20 05:37:06 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Either Freddie Mae or Freddie Mac have an asset backed loan. Most mort. brokers do not know about it so you will have to ask directly . . . It's for high net worth individuals. Basically, the long and the short of the program is when my husband and I want to buy an investment property - we put up a cash (or the equivalent of cash) bond to secure the loan. You agree to not touch the bond until the loan is paid off. In the event that you default the bank does not repossess the investment property but takes the cash bond. I'm not sure if you qualify because I'm assuming there is a mort. on the property mentioned. If you don't have a mort. and are not planning on moving - it's a great plan.
2007-08-20 05:39:18 · answer #4 · answered by CHARITY G 7 · 0⤊ 0⤋
Taking the equity out is good, but you may also see if you can qualify first before going through the equity process.
Is there or will there be a positive cash flow. Have you ever been a landlord. Go to ebay and buy Carleton Sheets property management course. It has lots of great forms and advice. Also my web site www.freemoneyforahome.com can get you a free down payment you don't have to repay.
2007-08-20 05:42:56 · answer #5 · answered by martin r 1 · 0⤊ 0⤋
I think your best bet is to try and refinance your present home and take some of the equity out of it to purchase your investment home.
I would not recommend taking ALL the equity out of your present home, but enough to cover a down payment and closing cost and a couple of months of holding cost on your investment property.
2007-08-20 06:35:27 · answer #6 · answered by house-hunter 2 · 0⤊ 0⤋
Refinance your home to obtain a HELOC. Use the money as a down payment for the investment property. Make sure that you have your mortgage lined up for the investment property when you start the purchase process for the investment property.
Hope this helps...
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2007-08-20 09:19:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes you can leverage that equity as a down payment or or straight up purchase of a another property. There are several way to do this. Drop me a line some time. Mortgage professional.
2007-08-20 05:38:51 · answer #8 · answered by Patrick H 2 · 0⤊ 1⤋
You might be able to refinance your home and get some of the equity out. In the current mortgage market this has become somewhat difficult, so your timing is bad, but you can ask.
Good luck.
2007-08-20 05:31:54 · answer #9 · answered by Judy 7 · 0⤊ 0⤋
You can take out a home equity loan on the first property to help finance the second.
2007-08-20 05:37:36 · answer #10 · answered by Luv2Answer 7 · 0⤊ 0⤋