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How to get a second loan with $0 down

I have a rental properly that I rent out for the past 7 years. My monthly mortgage is $1,300 and rent out is 1,300. My Mortgage pay itself out. My house is appraise for $200,000 and I have left is $90,000. I have more than 50% of equity paid so far. My salary is $50,000 a year and have over 700 credit. Can I get another house loan for $250,000 with 0 down if I still have this house on my name? by psithirajvongsa59 from Freeport, Illinois. Jan 14th 2016 Reply


Dan Paladin (dpaladin)
#1 ranked lender in California - 416 contributions

Not enough info here..though regarding zero down..there are only two programs that allow that....USDA or VA...so you would need to be a Vet or property must be in a rural area....regarding qualifying more info is needed. Contact your local mortgage banker and they should be able to provide more specifics for you.

Jan 14th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,789 contributions

If you have VA benefits available to you, and this will be your "Primary" residence, then yes.. you can go zero down.. Also, if you find a home in a designated USDA area, you can do zero down as well so long as you meet all other eligibility requirements.. Aside from these two examples, you're going to need a minimum of 3.5% to 5% down depending on the lending program you go with. Conforming guidelines allow you to have multiple properties in your name.. even if there is a loan against them.. However, lenders will require that you have sufficient cash reserves equal to 6 months payments stashed away in addition to any down payment requirements for a new home. And, even though you are renting the home for your mortgage payment, lenders will look at your tax returns and deduct your expenses associated with the rental. So it's very likely you have a loss associated with the rental, and the lenders underwriter will take that into consideration when determining your qualifying income. If you really want to know for sure where you stand, you should contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, including the info on your rental as well as your tax returns, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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 NMLS# 226347

Jan 14th 2016
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