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By Jim Baldasare, Atlantic Bay Mortgage Group, NMLS #211256

Q: Can I borrow money from my "paid for home" to use as a down payment on a home I want to buy?buying a house

A: 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.

Additional questions?  Call Jim at 757-870-8387.

Are you looking to start the home buying process?  Email us at concierge@lizmoore.com, we'd love to help! Or, click below to download our free Home Buyer's Handbook.

 

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