A friend of mine, bought a house in southern cali less than two years ago. She bought another property and she said that the bank who financed her new property will not request any down payment on that new one.
What they will do is take the profits from the first property and use that for the down payment on the new property.
Not sure if that make sense but is it possible for banks to do that?
???
Sure. It is called a 2nd mortgage, HELOC, or any number of other methods that could be used to pull equity from a property and use it to purchase another. The bank doesn’t care what secures the money provided they have a security that is sufficient to cover it.
And besides, it seems that the money flows from the bank to real estate these days faster than it does from a crack whore to the pusher.
Thankyou.
caliresident,
You say the bank will take the “Profits” from the first house and apply that to the downpayment for the second house.
Then you ask if this can be done. The answer is yes, whe the first house is sold, the seller can use the sale profits any way that makes sense.
Oh wait, I meant if the first house is not sold yet but is in plan of selling.
Therefore the lenders are giving a loan on a house that is not sold yet or the equity I guess…
OK, that is a little different. Now the new loan is simply the common, garden variety “bridge loan”. It is done all the time.