Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

HELOC - Rental property

cmontminy

0
Registered
Joined
Sep 16, 2009
Messages
19
Is it possible to use the equity on a rental property to use as a down payment to purchase another property?



What are the regulations on this?
 

JBagorio

0
Registered
Joined
Dec 4, 2007
Messages
263
Yes if you have enough (full or just for down payment) you could certainly do so via a HELOC or refinance. Interms of regulation, the bank honors this and I have done it many times. Just make sure your number still works accounting the interest paid on it.



Regards

Jason
 

RobMacdonald

0
Registered
Joined
Oct 16, 2007
Messages
758
Yes you can.



Most lenders will allow you to use home equity from either your residence or rental property toward a purchase of another investment property. The new loan (or refinance) must be taken into the debt servicing calculation.



Some lenders allow you to access a HELOC at very good rates as a second mortgage. In most cases though, you may have to refinance the first mortgage.
 
Top Bottom