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Can I technically borrow on my mortgage free condo in California to purchase a second home in Georgia?

by robertbyrd827 from Irvine, California. Apr 14th 2014 Reply


Chris Gummerson (cgummerson11)
#392 ranked lender in California - 648 contributions

Yes, funds from cashout can be used at your direction. Look into if your income will support both mortgage payments, unless you are able to purchase the condo outright.

Apr 14th 2014
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#77 ranked lender in Florida - 2,240 contributions

Yes you can, the new payment however will need to be figured into your debt to income ratio.

Apr 14th 2014
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes. I would apply for either a cash out refinance or a 1st lien Home Equity Line of Credit.. with a HELOC, you apply one time and have unlimited use of the funds during the draw period without having to re apply each time.. with a cash out refinance, you apply and get a lump sum.. for qualifying purposes, you would have to have enough income to support both mortgage payments.. and if you have rental experience, you might be able to add the projected rent to your income, which would help with your debt to income ratios. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Apr 14th 2014
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Larry Gray (lgray_312_247)
#592 ranked lender in California - 1,139 contributions

William Acres brought up a popular way to purchase another home using equity in an existing home. That is in qualifying for a low or no cost HELOC or equity line of credit. You can draw from that towards your purchase of the Georgia home. There are reasons why people might refinance the home with a standard loan rather than getting a heloc. One obvious one is if rates are quite low and you want to lock into a rate long term on the primary property or even for 5 or 7 years. Explore the options with a Broker or Mortgage Planner/Consultant.

Apr 14th 2014
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Dale Dikes (addikes@aaabanking.com)
#57 ranked lender in Michigan - 5 contributions

Yes, not only can you draw on the equity from your California condo, but you will also enjoy some tax advantages from it. Be sure to consult a tax advisor for further explanation on the subject. HELOC's are a great way to borrow against your condo, but with rates on first mortgages as low as they are, a longer term/lower payment may make sense too.

Apr 14th 2014
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