Know how to buy a second home with no money down from professional real estate experts.
Pittsfield, MA -- (SBWIRE) -- 08/21/2013 -- Buying a second home with no money down is possible. Real-estate-yogi.com is here to share its knowledge about this topic by offering some insight into it, such as:
- Places to Borrow From
- Home Equity Loan
- Renting the First Home
- Hard Money Loans
Borrow the Down Payment
If one cannot find a way to go about buying a second home without a down payment, there are ways to come up with money for it. One of them is to borrow it from an individual retirement account at work. If one has been employed with the same employer for many years, he should have a significant amount saved up in his IRA. He can borrow from it to provide the money down a seller needs. If that route doesn't provide enough funds, check into borrowing against a cash-valued life insurance policy.
Buying A Second Home With No Money Down, Get Approved Even With Bad Credit At Lowest Market Rates!!
Home Equity Loan
A home equity loan can also provide funds for use as a down payment when buying a second home. This type of loan is useful because it is given in one lump sum which can be used for any purpose. One can use the money to put a partial down payment on a second home, or to put the full deposit down. The loan is repaid over the next 20-30 years, just as one would pay their original mortgage.
Buy & Rent Simultaneously
One way for buying a second home with no money down is to rent out the first home. This will make it unnecessary for one to have to save for years to get a down payment. He can stay in a hotel until he has enough money for a deposit, which should only take a few months, rather than years.
“Hard Money” Loans
A “hard money” loan is one which is based on an asset, usually one’s home. These loans can be an answer for those who require a down payment when they want to buy a second home. They are usually generated from private investors or companies, and have higher interest rates attached to them than traditional loans do. Credit ratings and income may be taken into consideration for these loans; however, the lender may base the loan amount on the real estate being used for collateral. The most an individual can expect from a hard money loan is roughly 65% of the collateral’s value.
www.real-estate-yogi.com is a full service cost-free website whose mission is to give consumers intelligent, current responses to their property financing inquiries by accessing the thousands of experts in this field who power the site. For a free initial consultation, dial 1-800-987-1397.
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