Using home as colateral instead of down payment for investment propertySo, here's a quick rundown of the situation:Economy tanked and messed with my credit some, but I've managed to pay off all of my accounts. This, though, has left me with no debt (and no credit) with 5 or so negative items (that were paid off).To help pay the bills, not quite 2 years ago I turned my house into a rooming house and have made money renting rooms from it.Now I have found a fair deal on a rental property which I would like finance, but I don't have a cash down payment.I considered taking a mortgage on my current home (which is payed off) and using that as the down payment, but would rather not have 2 seperate loans out. Is it a possibility to use my current home (which is worth about 30% of the asking price of the other rental) as collateral to be able to close a loan?Or what other possible options are there to be able to make this deal happen? There is enough room in the NOI to finance with hard money, but of course the terms are not very favorable.September 11 2013 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.