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How to Buy a Second Home with No Money Down?

Back to questions list October 18, 2019

If you decide to buy a second home, it means that you already have your first home. You might have already covered the mortgage you took for the first house, or you are still repaying it. However, you can use a property of your first house to get a home equity loan for the second one.

This option is good for people who don’t have enough money to cover a down payment of 20 percent. Using your first home’s equity requires you to have already enough money paid for the first mortgage. The money you really own is calculated as the percent that you have already covered. So, you are free to use this equity to invest in your new dwelling.

You should also keep in mind that you will pay more for a home equity loan than for a conventional loan you can get, so you should take only the amount of equity you really need.