Can you get a Home Equity loan or 2nd mortage on a house that you don’t occupy?

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I have a second home that I am trying to sell but if I can’t sell it I am going to have to turn it into a rent house. I have fixed this house up so I have lots of equity in the home. I was just wondering if anyone knows if you can get a Home equity loan or a 2nd mortgage on a unoccupied home.
and if you can is Lending Tree a good place to go and try to get that type of loan.

2 Comments
  1. Reply
    Jen
    April 30, 2011 at 1:10 am

    Yes,you can get the loan. However, you may not be able to get as much out of the house as if you were living there. My advice is to call a mortgage broker (not one specific bank) and talk to them about your options. They are able to find financing from more than one source and they may be able to help you get more out of it.

    Good Luck!!

  2. Reply
    Arf Bee
    April 30, 2011 at 2:04 am

    Of course you can, provided you can demonstrate your ability to repay the loan, i.e., make the loan payments above your existing obligations. You may be able to get up to the maximum debt-to-equity ratio allowed by the lender and also based on the updated appraisal value of your real property.

    It would be easier to get loan approval if you had it already rented on a long-term lease, which will be the source of your repayment for the Equity Loan.

    Another factor considered by the lender would be the purpose of the loan proceeds, depending on their prevailing policies. Be sure to deal with the more reputable commercial or mortgage banks and avoid going to “hard money” lenders.

    Good luck!

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