Posted by JD on September 09, 2003 at 12:16:59:
What percentage of the equity in a property will a lender use for an Equity line of credit? Say my house is worth 60k and I owe 40k. Will they ELOC me the entire 20% of my home’s value?
Equity exchange for new loan - Posted by JD
Posted by JD on September 08, 2003 at 23:57:07:
Will a conventional lender take an existing properties equity as a 20% down on a new purchase?
If so is it easy to talk the lender into accepting this form of money down?
Can this be repeated several times just moving the equity from purchase to purchase?
Re: Equity exchange for new loan - Posted by jeff
Posted by jeff on September 09, 2003 at 10:26:38:
A nonconventional loan may work, but then both properties would be tied togather if you ever went into defalt. You could equity line of credit the property you own and use it for a down payment of 20% on the new property then they are independent of each other. There are a lot of good loans on the market right now. As low as 5% or 10% down with no PMI on investment property. The rates are higher, but if you can create cash flow it may be worth it. You may be able to pick up 2 rentals instead of just 1. Happy Hunting.