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Can we use equity in a house in Georgia to buy a house here in SC?

Three years ago we moved to S.C. from Georgia. We were not able to sell our house in Ga. so we are renting it out through a property management company in Ga.. We have seven years left to pay on the house in Ga.
We have been renting here in S.C. for the three years we have lived here. My question is can we somehow use the house in Georgia to allow us to purchase a house here in South Carolina?

  • December 28 2010 - Lexington
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Answers (4)

You will need to find a lender who will do a cash-out transaction on an investment property. Fannie/Freddie Guidelines will allow cash-out up to 75% LTV.  Has the property been listed for sale this past year?

As long as the numbers work and you can qualify with the payments on all your debt it can be done. I can do loans in both SC and GA. You can contact me through the contact information in my profile.

  • January 03 2011
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Profile picture for Steven G. Hinton
Unless you want to continue owning the Georgia house you may want to investigate an exchange.
  • December 28 2010
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What is the estimated value, loan balance, and rent amount ( after management fee) on the Georgia property? What is the price range on the proposed purchase in SC?













  • December 28 2010
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Yes! You can use what equity(what you have already paid down on principle, and maybe if your property has increased in value the last few years) you have in it to leverage against the purchase of your home in SC. You will have to talk to your lender on what they will allow. The way the lender will see it as you putting up the equity in your home as collateral for your new home(ie if you foreclose on the new place they get both homes). The banks usually look at equity leverage as risk reduction for them. They less risky the loan the more likely they are to give you a better rate and lower payments. Understand that you need to ensure you can make the payments on your new place and can cover the rental home incase it is vacant for a few months otherwise you could get your selves in trouble in a hurry. It sounds like your in a good position if you have been renting your place out and have a possitive cashflow for 2+years. Make sure to stash some of your money away to clean up/repair carpets/new paint when you are ready to sell it too. Best of luck to you guys
  • December 28 2010
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