using equity in current home for down payment on 2nd home

Question

I currently own my home free and clear. I have an excellent credit rating. I am looking to purchase a second home. My son will be renting my current home. I am short 10-15 K for a 20% down payment to avoid PMI. I would only need it for 1-2 years. Is there a way I can do it without encumbering my current home and without paying higher interest rate?

Answer 1

You can purchase your second home with a 80/10/10 piggyback second. Put 10% down payment, get a first for your first and get a second for the balance. You can also do a cash-out refinance loan on your first and get proceeds from there. Or get a HELOC on your first. Many options for you. Need a 700 credit scores for most HELOC. Home Equity Lines Of Credit

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