I just purchased a $100,000 FHA home (%3.5 down) and would like to buy a second home as an investment property in 6-12 months. I put in about $5,000 in upgrades (new paint, moulding, french doors, fixtures, kitchen cabinets, sinks, tiles, etc) to increase the home’s value and have about $10,000 saved up. My plan is to take out an equity line of $10,000 – $20,000, so that I can go with a conventional loan and put %20 down on another home priced around $100,000. The problem is, I only make $16 an hour or roughly $30,000 a year. Will I still be able to qualify for a second home in my desired price range? If not, what can I do to qualify?
Posts Tagged ‘$100000’
If I use a new home equity loan to payoff 1st mortgage, will the tax deduction be limited by $100,000 ceiling?
10
Mar
If I borrow more than $100,000 and pay off my 1st mortgage, that basically I turn the home equity loan into my 1st mortgage, but I am not sure if I can deduct all interest up to the whole equity amount I borrow. Generally home equity loan can only deduct tax for the interest for the loan amount up to $100,000.
I am able to find a home equity loan with zero cost with lower loan rate which is better than any mortgage program I can find in the market.
My financial advisor wants me to get a $100,000 home equity loan and he will invest it. Good idea?
07
Mar
I would use part of the interest earned to pay the loan. I have $500,000 equity. My mortgage balance is $350,000.
Is A Home Equity Line Of Credit Or Home Equity Loan Used To Buy A Second Home Tax Deductible Beyond $100,000?
25
Sep
Would a Home Equity Line of Credit or loan used to buy a home be considered a Home Aquisition Debt instead of a Home Equity Debt?