Using equity to purchase second house?

You will need to do a cash out refinance on the current property but as long as you qualify for the debts. Yes you should be able to take that cash and use of a down payment.

Yes.. you would need to pull the equity out either by doing a HELOC or a 2nd mortgage against the same property, and so long as you have enough income to satisfy all the new mortgage debt, you should be ok.. 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. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

The best way is to do a conventional cash out loan to get the cash to buy the 2nd home, plus you secure the lowest rate on your primary house with the most benefit financially. I would be happy to assist you as I am a Calif based lender with over 23 years in the industry. Any questions or to start up let me know I can be reached at 408-892-3523 http://lighthousemortgageco.com

Happy to help - and there are several viable solutions to your scenario...many of which have been posted here. I live and work in Des Moines, IA and would be happy to discuss with you if you wish to work with a local mortgage professional.