My house is worth 300000, I still have 180000 mortgage, How much home equity can I get to buy second home in sacramento, ca?

Asked by Brian1102, Redwood City, CA Thu Jun 16, 2011

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David Tapper, Agent, Burlingame, CA
Tue Jun 28, 2011
Hi Brian,

I wouldn't go FHA to refi your home because then you would have PMI and if you are investing, that is another added cost. Just go conventional financing and hopefully you get get a loan for close to $240K and that would leave you with $60K to invest.

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Deborah Garv…, Mortgage Broker Or Lender, San Diego, CA
Thu Jun 16, 2011
As already stated there are many variables involved, but generally speaking you can take cash out of your primary home up to 75-80 percent of the value. Some programs may allow more but you would need to have mortgage insurance and getting an approval can be tough. I would recommend that your get an approval for both the cash out refinance and the purchase of the new second home at the same time and with the same lender to ensure that evrything will come together as you desire. Doing the refi separate from the purchase risks that you may not be able to buy the new home after all.

As with most lenders, there are no application fees and no obligation. If you want further information, please contact me.
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Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Thu Jun 16, 2011

You should consider speaking with a lender and completing a pre-approval. This is the only way to get an accurate answer on what you can borrow. If you'd like to start that process with RPM, there is no cost or obligation and I'm happy to help you sort out your options.

Rob Spinosa
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J Mario Preza, Agent, Burlingame, CA
Thu Jun 16, 2011
There are many variables to getting equity from a house. Just to clarify what these may be may require you to call your local lender(s) to review your credit (that being one of those things they evaluate); the other item on the to do list, do you have enough income to support both houses? Or are you planning to buy all cash with the money from the equity line? And on, and on. It is advisable to get pre-approved by a lender for either or both loans, and then make plans to go see/buy an investment property. The financing options have changed, and unless you're familiar with these -- the guidelines, etc., you may be in for a surprise. Good luck.
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Elva Wormley, Mortgage Broker Or Lender, San Jose, CA
Thu Jun 16, 2011
Hi Brian,

Yes, with FHA you can go up to 85% loan-to-value, however, that will be a new first mortgage, with mortgage insurance.

The other option would be a home equity loan at 80% combined loan-to-value.

Best regards,

Elva Wormley
Cobalt Financial Corporation
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Brian1102, , Redwood City, CA
Thu Jun 16, 2011
My monthly salary is around $2200 and my wife is 500 after the tax deduction.
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Frank Sandov…, Mortgage Broker Or Lender, San Francisco, CA
Thu Jun 16, 2011

There are equity line options available up to a 85% cumulative loan to value ratio for owner occupied properties. Based on the information you provided you'd be eligible for a $75,000 line subject to your ability to qualify for this additional indebtedness. It would be necessary to evaluate your income, credit and liabilities in order to confirm your ability to qualify. I hope that helps.
(415) 475-9309
California Dept. of Real Estate #: 01371776
NMLS #: 271709
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Gregory Garv…, , San Francisco, CA
Thu Jun 16, 2011
Whats your income? That is important.
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