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can the house be borrowed against? I’m wanting to buy a low cost property, I have one now and I took out a personal loan and had to put up collateral for the loan. To buy that house. That wasn’t but 3 months ago..Since there is no “mortgage” refinancing isn’t an option. Can’t refinance a personal loan. Does the personal loan have to be paid off before I can get another loan against the house even if 1 of the intended uses for the 2nd loan is to pay off personal loan.Both house needs work and didn’t cost much. I need to finance w/o a personal loan so borrowing against the other house is something I need to have. I’ve have just recently grew up so my credit isn’t as good as it will be.Should I try and get a reg mortgage,or try to borrow against the house I already own. The total amount of what I want to borrow is 24k that pays the personal loan, the rest for the 2nd house.Any ideas?
Thank you for the responses. The combining of the 2 loans and repairs on the houses are ideally what I would like to get in a loan.I just need to find it. Both houses are worth the money as they are now. And I have a gut feeling about them. A strong pull to the new one I want to buy. It’s a diamond in the rough.

2 Thoughts on When a person buys a foreclosed home and gets a personal loan to pay for it,?
  1. Reply
    Scuba Kip
    February 12, 2014 at 9:36 am

    You should be able to get a home equity loan for these homes – depends on your credit history. Since you have this personal loan – the bank may require to pay off this loan – so what you have to look at is get enough loan to pay off this personal loan plus what ever you need to refurbish the homes. Try to get all of the money you need for both homes if possible using one homes. THis way when the second one is refurbished you will have it free and clear. The loan will be based the LTV – and the bank you use, and your credit worthiness will play a big part. Since there are two homes, both of them can’t be owner occupied. You may want to choose one home as owner occupied if it works for you. If a home is not owner occupied – which means it is an investment property, the bank will scrutinize more regarding this situation. These are some hits. Good Luck.

  2. Reply
    realtor.sailor
    February 12, 2014 at 9:41 am

    You’re going to find that banks won’t loan that small amount for a home purchase. Most have a minimum of $ 50,000

    realtor.sailor

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