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Can you use a home equity loan on a current property originally taken out for remodeling for a down payment on a new property?

Answer

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Wiki User
02/28/2007

You should ask your banker or mortgage lender if you can do that. If your debt to income ratio is to high you will be declined for a loan. I know with our money we were better off paying our car loans that got us a better interest rate then putting down a down payment and having debt we would have had a bigger interest rate. Now, if your other house is paid down enough where you will still come out ahead after paying back the home equity then it probably wouldn't matter.