Zillow Advice: Buying Process - Can equity in a condo be used as a down payment on another property? http://www.zillow.com/advice-thread/Can-equity-in-a-condo-be-used-as-a-down-payment-on-another-property/452320/ Zillow Advice | Zillow Real Estate That's a tricky question ... http://www.zillow.com/advice-thread/Can-equity-in-a-condo-be-used-as-a-down-payment-on-another-property/452320/ That's a tricky question given the ultra-conservative lending world we're currently living in.&nbsp; The best answer is, "It depends."&nbsp; Do you own the condo free and clear or do you have enough equity to scrape up a down payment?<br/><br/>If you own it outright, a&nbsp;local bank will most likely be your best bet.&nbsp; They'll place a lien on the condo and your purchase property and make sure that the loan amount is within their Loan To Value guidelines for lending.<br/><br/>If you don't, then there is a whole new set of rules for renting out the property.&nbsp; For instance, you'd have to have at least six months payments reserves in a bank account to cover months that you may not have it rented.<br/><br/>Your best bet is to speak with a local bank -- they are more open to non-cookie cutter type loans. Tue, 24 Jul 2012 02:20:00 GMT http://www.zillow.com/advice-thread/Can-equity-in-a-condo-be-used-as-a-down-payment-on-another-property/452320/ 2012-07-24T02:20:00Z