Can you borrow more money than the house costs on your mortgage loan to pay off a car loan?

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I am paying on a car loan and was wondering when applying for a mortgage loan can I borrow extra than what the home costs to pay off the car loan?

  1. Reply
    February 14, 2011 at 2:32 pm

    No, mortgage investors loan on real property, not personal property. Your loan will be limited to the amount required to finance the property only.

  2. Reply
    February 14, 2011 at 3:25 pm

    Usually the answer is no but it is a function of your loan-to-value ration. If the house is worth much more than your loan amount, you can borrow against the equity. As a extension to this, you may be able to borrow against your down payment. If you say, put down 20% and you find an home equity loan that will go to a 90% LTV, then you can borrow half of your down payment. This may sound tricky but many loan brokers do this for people with less than the typical 20% down payment.

    Be weary of loans offering 100% or higher LTV. They are very dangerous.

    You have the right idea-Good Luck!

  3. Reply
    February 14, 2011 at 4:07 pm

    No, you can’t. Lenders will only qualify the mortgage based on the purchase price. You can’t finance more than what is stated in the contract of sale. Good Luck.

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