Can you get an Equity Loan and use it as down payment?

[Jane Kai]

Can I get an equity loan for my current home and use the money as a down payment when purchasing a new home?

How high are interest rates on equity loans?

[Devin Peterson]

I would reccomend that you do some number crunching first. Make sure that wherever you are placing the funds makes you more than it would cost you to pay for the fully drawn amount. I.e, if you intend to use for purchase of a new primary home, youd have to make sure your lender doesn't have any seasoning requirements with heloc funds and your primary is not a cash flowing operation, its just more debt. Furthermore, a lot of inv banks are shying away from HELOCs as fund to use for a purchase unless they have been drawn and placed into a checking account for at least 90 days. I would vet this scenario out further with the lender you intend on using for directly for the purchase. GL.