Refinance First Mortgage to get Second Mortgage

[Darius Johnson]

Hello Everybody,

Looking to refi 1st mortgage on a SFH out of town, to get money for a down payment get a 2nd mortgage on another SFH in a different town in Ga.

Anyone have experience doing this or any suggestions?

1. I what to keep 1st SFH but it is unoccupied looking for a renter. This is my former primary residence.

2. I want another SFH to live in as the new primary mortgage in different city in Ga.

What is the best way to accomplish this or is this a good idea? Interested in how to pull this off.

Thanks!

[Albert Bui]

Originally posted by @Darius Johnson:

Hello Everybody,

Looking to refi 1st mortgage on a SFH out of town, to get money for a down payment get a 2nd mortgage on another SFH in a different town in Ga.

Anyone have experience doing this or any suggestions?

1. I what to keep 1st SFH but it is unoccupied looking for a renter. This is my former primary residence.

2. I want another SFH to live in as the new primary mortgage in different city in Ga.

What is the best way to accomplish this or is this a good idea? Interested in how to pull this off.

Thanks!

 HI Darius,

As long as you have sufficient income to qualify for the home you are vacating on your own then you should be able to get the money out of your current home as a primary residence cash out. 

Keep in mind though, that to qualify for the second home you'll have to have enough income and cash reserves (2-6 months of monthly payments) to qualify.

To keep it simple you'll need about $2.22 dollars of gross monthly income/salary based on the mortgage payments for both properties and any other credit obligations you currently have.

Example:

Current 1st property cash out loan + tax + insurance = $1250

2nd property purchase mortgage + tax + insurance = $1750

car loan = $500

credit cards and other loans = $350

Total monthly obligations = $3850 X 2.222 = $8547.00 gross monthly income needed approximately to qualify.

There are situations where a bit less income could be needed but you'd have to have large cash reserves 12 months + or you get your cash out done first and then get your first home rented prior to purchasing a 2nd home so you can use the rental income to offset your current 1st mortgage obligation.