Q: Can you borrow the down payment for a new property using cash from a property you currently own?
If so, is this different from home equity loans or cash-out refinancing?
A: Typically, when you borrow money and use your property as collateral, property, it’s either called a home equity loan, a home equity line of credit, or a cash-out refinance. In any of these cases, the money you have obtained from an existing property can be used as a down payment on a new property. The lender of the new property will look at all of your debt and income to determine whether to loan you the money for the new home. So, yes, you can borrow to buy a new property if the conditions are right.
In addition, if you have a bunch of rental properties, it may be possible to borrow against all of the properties as one entity. But, you’ll need to find a banker who is willing to look at the properties as a whole and work with you at another level.
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