Is it advisable to use a home equity loan for a down payment?
I'm thinking about purchasing a larger home and was considering using this loan to fund the down payment. Thoughts? by JPJone_168_335 from Madison, Wisconsin. Oct 4th 2012
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,852 contributions
Using equity on one home for a down payment on another is a common practice... There is nothing wrong with it... It is still a loan, and we will factor it into your debt ratio.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Cash is King!! the more you can borrow, the better position you will be in and the higher your effective return on investment will be... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions
Yes, you can use a home equity loan for a down payment. You didn't mention what you intend to do with the home associated with the home equity line. Keep it? Rent it? Sell it? All are potentially acceptable scenarios. I am also a Wisconsin lender, so please feel free to contact me if you would like more info. barb.lanis@1amllc.com go pack
Michelle Curtis Loan Originator NMLS 401173 (MichelleCurtisLO)
#77 ranked lender in Florida - 2,245 contributions
That is completely up to you and if you can handle all the payments.
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