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Want to purchase a rental home when we already have a mortgage on our residence?

Our home is about 50% paid off, and we are looking to pull equity out, and buy a rental property worth $120-130,000. What is the best way to go about doing this? by gennywithag440 from Coeur D Alene, Idaho. Aug 17th 2015 Reply


Linda Miller (Linda Miller)
#2 ranked lender in Utah - 562 contributions

There are two ways to pull equity out of your home. You can do a cash out refinance on a 15 or 30 year loan. You will use the cash out for the rental property. OR you can get a home equity loan and do the same thing. Keep in mind that you will have to qualify for the investment property with the payment on your current home and with the investment. You are also required to have some reserves (usually at least two months payments on each property - sometimes more). This is not money you need to have in a separate account. You just need to show you have it. Give me a call at 801.550.1222 and I can go over this and give you some info on payment, rate and fees. Linda Miller... linda@smartloanlady.com

Aug 17th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

You do a "cash out" refinance on your primary, trying to keep your loan to value at or below 80%, and with the proceeds, you put 20% to 25% down on your investment property.. You can also apply for a Home Equity Line of Credit (HELOC) on your primary and with this type of loan, the closing costs are very low, typically under $500. With a HELOC, you apply once, but have unlimited access to the funds without having to reapply each time.. Plus with HELOC's the rate is most always a variable rate which is very low right now and should stay low for sever years to come.. 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

Aug 18th 2015
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