Updated almost 4 years ago on . Most recent reply
Creative loan financing
Hello,
My wife and I have been looking to find a larger home since our family is growing. We are very interested in keeping our current residence for a rental/investment property in addition to buying a new home. We spoke with our mortgage lender who said we could look into qualifying for both homes, and do a cash out refi on our current residence... but we would have to wait 6 months to buy another property. We are not looking to use any cash of our own. Instead pull the equity we have for the down payment on the new house. We live in CA ( I am not sure if this would change anything). Love to hear any creative ides on what to do.
Most Popular Reply
Hi Haeden,
You can do a cashout refinance of your current residence and use that as a downpayment on a new primary residence. On rental properties, you can get about 75% loan-to-value. Just let the new lender know that you'll be using the proceeds from the refinance as a down payment for the new home.