By this I mean, I have a property which should have a good amount of equity in it but I don't want to wait the seasoning period to pull it out since I just bought it. Is there a way to purchase another property and use the equity from the first property as my 'down payment'?
A seller my allow your current property to collateralize theirs in lieu of more money down. Depends on their situation. May also show them you are seasoned, having another property with equity. I doubt you will get friendly terms skirting seasoning requirements. What I mean is, some lenders may not need the seasoning, but their terms will be tough. Go find that creative seller @Sarah Miller ! They usually own apts and are looking to retire.
The only thing I think you can do is a cash-out refinance on the first property. You will take a bigger loan, pay off the existing loan, and keep the difference as cash to do with whatever you want.
@Sarah Miller Yes, you can use the equity from property A for the down payment on property B. The challenge is finding a lender. Without any variables, here's essentially what you're looking at... (1) getting the existing 1st mortgage holder to increase its mortgage to provide you the cash out or (2) finding a lender who's willing to hold a 2nd mortgage on property A or (3) finding a lender who will provide you with $X and secure it with a mortgage on both properties A and B.
Completely different option that doesn't involve property A would be to try getting seller financing on property B. The seller note could be shorter term, tied to your planned refi on property A when it's seasoned.
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