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Can I use the equity in my home as a down payment if I "trade property"?

I am negotiating a "property trade" with a real estate agent. My payoff is estimated @ $68K, my appraisal is $80,500. The RE agent says the owner will "trade" for $5K difference to the seller of the property I am interested in.  I need to finance the new property - can I use the equity in my home as a down payment? Please email me @ adlewis90@yahoo.com if you have someone that can assist me with this question.
  • September 11 2013 - Bastian
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Answers (1)

You can do that.  Lenders will review the appraisals for the property more strictly as well as other documentation to make sure that nothing fishy is going on because that is a situation where fraud could occur.  I have closed a purchase like this and it just takes a little more coordination and documentation.  I'm not sure which state you are in.  I hope this helps
  • October 12 2013
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