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Old 03-11-2018, 08:30 PM
 
70 posts, read 131,835 times
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I have a home and have equity in it . Can any one provide information of end to end process of how to buy your second home using your equity from your first home.

Also whats the difference between investment home vs second home.
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Old 03-12-2018, 07:51 AM
 
Location: Houston/Brenham
3,568 posts, read 4,195,255 times
Reputation: 6191
Quote:
Originally Posted by DallasDream View Post
I have a home and have equity in it . Can any one provide information of end to end process of how to buy your second home using your equity from your first home.

Also whats the difference between investment home vs second home.
Talk to a mortgage banker. They'll help you strip the equity out of your current house, so you can shortsightedly put it into another house.

There is no hard and fast definition, but most people would say if you buy a 2nd house for personal use (weekends, summers, whatever), that's a second home. If you buy it primarily to attempt to make money on it (rentals, etc), that's an investment home.
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Old 03-12-2018, 08:48 AM
 
Location: USA
132 posts, read 42,975 times
Reputation: 227
There are NEW caps for 2018+ that may possibly ELIMINATE any tax deductions for 2nd home;
you REALLY have to look at numbers to determine how this would workout for your specific situation;

https://www.cnbc.com/2017/12/22/tax-...cond-home.html
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Old 03-12-2018, 09:23 AM
 
70 posts, read 131,835 times
Reputation: 17
Thanks astrohip for the information.

Does the loan process/property insurance works the same way for investment properties as they do for primary home.

Do we have to or we dont need to leave our primary residence and make investment property as our primary home.
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Old 03-12-2018, 01:42 PM
 
64,577 posts, read 66,100,109 times
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since 2008 making a 2nd home or investment property a primary has new rules as far as getting that 250k or 500k exclusion .

it is prorated now based on how long you owned it and it spent in un-qualified use vs how long your primary later and was qualified for the exclusion .
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Old 03-13-2018, 08:13 AM
 
27,456 posts, read 44,947,050 times
Reputation: 14041
If you are thinking this is the way to leverage your equity and start a real estate empire or start an income train like some people advertise on radio or Internet you really need hard information--about your own resources and risk profile
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