The simple answer would be no, with one possibility. If you can borrow enough money on the new property to pay off the second loan on the first property entirely, then it would work. You can always fully pay a loan and if you get enough to pay it off entirely, the bank will be happy to take your money. The problem is you will not get excess funds out of your purchase of the new home, so you would have to have sufficient cash to make it work. If you have that kind of cash, you could sell the first home, bring cash to closing to cover the full payoff of the loans and buy the new home. If you do not have that kind of cash, you can do a short sale of the first home (see http://www.CreateAShortSale.com
) and try to buy the second home before the short sale of the first home affects your credit. Like I said, the most likely answer is no. Good luck.