OfflineHi!
Im a CPT in the Army and need some advice.
I want to buy a house listed for 75,000 and appraisal value is 93,000. Since I am in military, I have a house in another state that I rent and make only about $50 per month. I bought the house for $170,000 and owe $131,000. But with the market drop, the house is only worth really about $150,000.
Im thinking of applying for a HELOC for the down payment on the new house (ie. the one for $75,000).
Can I get a HELOC on old house the same time I am applying for mortgage on new house?
Do I state with mortgage broker that the new house will be my primary residence?
Im excited, nervous and confused all at the same time!
Any help would be greatly appreciated.
v/r
Gary
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Gary,
A HELOC will fall short of your rental property Loan to Value by your estimate of FMV, $150K puts you at 87%. No owner Occupied properties are limited from 70%-80% of value to purchase and maybe 90% with 2 years of rental income documented.
Dave in PHX