No. It doesn't work that way. First, each home you purchase requires a down payment. Therefore, you would need 1 down payment for the first home and a 2nd down payment for the 2nd home. In addition, if the second home is not your primary home, you will need to have a much larger down payment since this is an investment property. Plus each home requires you to pay closing costs. So that's 2 closings = 2 different amounts for closing costs.
Next, each mortgage you take out requires you to pay fees (application fee, appraisal fee, inspection fee, etc.) and you will need to pay an attorney for each closing.
Finally, mortgage lenders don't give mortgages under $80,000. because it's not profitable. Understand for the time involved, reviewing documents, etc. lenders need to make a profit and there is no money to be made for mortgages under $100,000. Some will go down to $80,000. but very few in NY.
As you can see, you are better off buying 1 property for $150,000. and that's IF you are qualified. Are you pre approved yet? You cannot think about buying a home until you are pre approved by a lender.... more