Two Homes in Two Different States - Need loan for both

I suspect one of the reasons you are paying high interest is because traditional lenders do not take multiple properties as collateral for one loan. Private or Hard Money lenders will, but they charge more. Since the interest rate is usually lower on your primary residence. If you have sufficient equity in it to pay off the balance, do that and you will own the rental free and Clear. If not, then you best course of action is to take out as much cash as you can (up to 80% to avoid mortgage Insurance) using you primary residence as collateral. You will then need to take out the difference using a loan on the rental property. Today, you would be looking at a note rate in the low 3s on your primary residence. ~ Bert Carpenter, CMC ~ The LoansA2z team of NOVA Home Loans ~ Licensed in California and Arizona ~ NMLS 40586 ~ www.LoansA2z.com ~ 888-889-9950

You may re-consider doing a loan crossing both properties in as collateral. Usually only private money lenders will do this type of loan and that comes generally with a much higher interest rates. If was you I would consider doing two loans. What this will do is help the interest on both loans on a conventional basis and since you have an excellent credit score use it to your advantage. I can walk you through several more options if you would like and get you in touch with a lending professional that can help you in both North Carolina and Kentucky. Merry Christmas! Kevin Prince SVP Liberty One 858-926-8904

Wrapping both loans into one is not possible in the traditional loan market (FHA, VA, Fannie Mae, Freddie Mac), but may be possible with some small banks or private lenders. Generally speaking, it isn't a wise thing to do.... as any financial trouble in the future puts both homes in jeopardy with no financial gain for having both homes on one loan.

Good comments above, what you want to do is pretty unusual - especially with the properties in 2 different states. Another option not mentioned is a possible home equity loan on you primary residence. The fees would likely be minimal but the rate is likely to either be high or not fixed and would likely increase, possibly signficantly, before you could pay it off. I also recommend you consider 1 or two mortgages, using mainly the home where you are living as the primary source of financing. I mainly work in South Carolina but also regularly handle loans in other states as needed and can help you with both properties. Whether or not you use me, I recommend you work with a mortgage professional who can handle both transactions - it will be much less complicated for you.