Can I borrow from my paid for home, a down payment for a home I want to buy?
Yes, you can borrow from a "paid for home" and use the funds as a down payment on the purchase of another home subject to the lending guidelines in place for the type of loan you are requesting. More than likely, you would be applying for a conventional loan whether it is for a primary residence that you will occupy or an investment property that you will rent out. Required documentation would be the HUD-1 settlement statement from the refinance when you pull the cash out of the "paid for home". Then you would need a bank statement showing the deposit and new balance of the account you put the money into. You would also have to qualify for the new mortgage carrying both mortgage loan payments. Please call me at 757-870-8387 with additional questions.
Jim Baldasare
Atlantic Bay Mortgage Group
NMLS #211256

Posted By: Jim Baldasare - Atlantic Bay Mortgage Group on Monday, August 12, 2013