Syracuse Business Daily

Can I use a home equity line of credit to purchase another home?

I want to open a home equity line of credit. I have 100% equity in my house and an excellent credit rating. I am planning on moving, but would like to buy another house first, and then sell my current house (which would sell for a higher price than the one I would buy). If I use the equity line to buy a house, would the bank permit me to sell my current house and pay them off at the closing? Kind of a bridge loan without the fees.

Public Comments

1. Most existing home equity lines of credit have been reduced or cancelled. If you do not have one, you are in for a long hard slog. Furthermore, if you are thinking of selling the house, they don't want to know you. Of course, the entire amount would have to be paid in full at closing. Problem is, if you do not sell existing house (and pay off HELC) before you buy a new one, you have two houses, two mortgages plus the HELC to pay each month, and you have so dramatically changed your debt ratios that they can call the HELC and cancel it. And you will not have sold the 1st house to pay it off! You are creating a hydra-headed monster here. Forget the whole idea.
2. I agree with Ibu Guru, I think you are making a big mistake, do not use a loan to get another loan, payoff the first house and save to purchase another, remember that the people who are being foreclosed are those that have mortgages.
3. If you are wanting to buy another house,i will advice you to try out findingloansolution@gmail.com.They helped me out when i was in financial problem i believe they will have solution to your problem.Go check them out.