Can I take out a second mortgage to finance down payment on new condo?

Is it possible to take out a second mortgage on a condo where I currently live and use the money as a down payment on a new condo I want to buy as a rental?Can I take out a second mortgage to finance down payment on new condo?
Its possible. Maybe even a HELOC.





And here's a piece of advice for you. And even if you don't take it on my word, take 15 minutes and call an attorney.





Found a company, an LLC or C-corp. Put the cash into the company and have that company buy the rental unit. This is a liability shield and will protect your personal assets from a lawsuit...or foreclosure on the rental. Because the liable party for the property is whoever is listed on the mortgage...and if its your name...you are responsible. Personally.





Please, call a lawyer and consult a CPA first about shielding yourself from liability.Can I take out a second mortgage to finance down payment on new condo?
if you qualify for it you might. Here's what I know. 1. heloc's are tougher to come by. you better have outstanding credit and income for the good rates. 2. While I do agree with the poster that said heloc's aren't a great option, do some research, there are heloc's that have either fix in or segment options. For example, say you get a 100k heloc and you take out 50k, you can call the lender and lock in the rate on the 50k, this is a great feature for a variable rate loan, this way your not worring about the rate rising. 3. DO NOT TELL THE LENDER IT'S FOR A DOWN DEPOSIT ON ANOTHER PROPERTY. The lender i used to work for frowned upon this greatly. Since lenders have tightened underwriting guidelines, tell them it's for a vacation, home improvements anything other than a down payment for a rental, this might get you declined in this market, hope this helps
if you have equity in your first condo, sure you can take out a second mortgage and use the money for a down payment on another condo, HOWEVER, you want to be sure that income wise you can not only qulaify for the money out, but also for financing the new one. And also the one you are buying since it will be a non owner occupied property you will need to put down at least 30% to have it make sense and like I said you would have to be able to qualify for both payments, You would need a rental agreement in order to show proof you have someone to rent the new condo if you are needing that income to qualify I would be sure you talk to a mortgage loan professional that shows you all the ways to do the financing, and educates you on the best way to go, also it makes a big difference where the condo is, and if y
Yes you can, as long as you can afford both loans. I would advise you take out a second mortgage with a fixed payment. do NOT get a HELOC. Heloc rates are not fixed and are very low right now, so it may seem that the payment is low. When the FED's start to raise the prime rate you might find yourself with a payment you can no longer afford. Get a fixed rate this way you will always know the payment.