14 Feb 2022

Can You Use a House as Collateral to Purchase a Second Home?

Use House as Collateral for Second Home Purchase

A homeowner who seeks to purchase a second home can use the house as collateral. Among other items homeowners can offer as collateral include paid-off vehicles, bank savings deposits, and investment accounts. 

During the application process, the homeowner must make it clear how they intend to pay the deposit. If they plan to use collateral, the lender must approve it. When a home doubles as collateral, it can’t have too much outstanding debt. Each lender sets its standards. Thus, the homeowner must meet the thresholds.

Mortgage House aims to help homeowners achieve their financial goals. Purchasing a second home offers many benefits. For example, sometimes it’s easier for parents to purchase a second home and give it to their children. Although home loan rates for second homes remain higher than for primary residences, parents with established repayment history can still obtain competitive loan terms. 

We offer mortgages specifically for homeowners who intend to purchase another home. Plus, we provide financing to investors who seek to build a real estate portfolio. In addition, several ways to maneuver the financing for the second property exist. As a non-bank lender, our loan specialists can provide innovative solutions and competitive mortgage packages. 

Our team is ready to help you purchase your second home.

Use House as Collateral for Second Home Purchase Conclusion

Homeowners can use a house as collateral to purchase a second home. The process requires a few steps. Mortgage House loan specialists can walk homeowners through them and the application. Contact our team today.

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