Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?

admin — Fri, 12 Dec 2008 20:42:58 +0000

Viper asked:

My brother and I need cash for a business venture and would like to take a loan out against an residential investment property that we co-own free and clear. Is our only option a Home Equity Loan? Ideally we would like to take advantage of the lower rates of a standard mortgage.

Herman

We are buying an investment property. With little to put down, what is the best way to finance the property?

admin — Sun, 30 Nov 2008 10:36:43 +0000

Michael K asked:

We have a large amount of equity in our current house.
We have no bills other than the mortgage on our current house.

Is a home equity loan to get to the 20% down payment and then a conventional loan on the investment property itself the best way to go?

Or is it best to finance the investment property itself rather than using the equity in the primary residence. We could finance 100% of the loan purchase price or do a secondary mortgage to come up with a 20% down payment.

Danielle

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Paid off investment home. Can I take a 1st mortgage on that property or must I go with a home equity loan?

We are buying an investment property. With little to put down, what is the best way to finance the property?