Help with a mortgage.

Asked by Jayme, Texas Mon Apr 14, 2008

We have no money down, but currently owe a home, but would like to keep it for rental property. Can a mortgage be done using the other house for collectoral instead of having a down payment?

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Katie Sparkman’s answer
Katie Sparkm…, Agent, Dallas, TX
Tue Apr 22, 2008
Hi Jayme - provided your income is sufficient to qualify with leasing out your current home instead of selling it and depending on credit scores, credit history and assets you may be able to strucuture your new mortgage with minimum out of pocket. There are several things that have to be taken into consideration in this scenario and I would need more information to properly address your concerns. Your current home cannot be used as collateral or a down payment on a new mortgage unless you sell it or pull the equity out by doing a cash-out refinance. There are programs available that will allow for as little as 3% down payment and allow the seller to pay towards closing costs and prepaids. FHA financing will actually allow a seller to pay all closing costs/prepaids plus title policy plus contribute to a non-profit down payment assistance program to allow for the 3% down payment to be a gift at closing. If your current home is FHA then that would not work since you can only have 1 FHA loan at a time (unless the loan to value is 75% or less on the current home). If you wish to speak in more detail and provide me with the necessary information, I can probably get you pointed in the right direction and let you know what your options are so that you can keep your current home as a rental and get into a new home with minimum out of pocket. My contact info is below and I am more than happy to help.


Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
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Becky Watson, Agent, Conroe, TX
Thu Apr 17, 2008
You need to contact CEBI Capital, they also have a buyers-assistance program that could help. Her number is 936-494-2324
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RE/MAX Empire…, , Texas
Tue Apr 15, 2008
It depends upon your equity and other factors. I would love to help so contact me if you need advice.
0 votes
T.E. & Naima…, Agent, Dallas, TX
Mon Apr 14, 2008
If you own the house free and clear, yes it can be done. Feel free to contact me if you need help securing a mortgage.

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