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From: tbg@apollo.uucp (Tom Gross)
Newsgroups: net.invest
Subject: 2nd Mortgage as Downpayment
Message-ID: <2c6a37e7.2a75@apollo.uucp>
Date: Mon, 10-Mar-86 15:49:02 EST
Article-I.D.: apollo.2c6a37e7.2a75
Posted: Mon Mar 10 15:49:02 1986
Date-Received: Wed, 12-Mar-86 21:54:02 EST
Organization: Apollo Computer, Chelmsford, Mass.
Lines: 21



    Suppose I take out a 2nd mortgage on my home (or refinance
    my 1st mortgage for, say, $40k more than I need to pay off
    the mortgage).  Then suppose I take the extra $40K and use
    it as a down-payment on a Condo I intend to rent out.
    When I apply for a mortgage on the condo the bank will ask
    on the application "is any of the downpayment borrowed?"
    Can I say no, it's not borrowed, it's just an extra $40K
    I happen to have?  Will they object to this?  

    When my wife and I bought our house the mortgage company
    was very curious about where we got the money for our downpayment 
    (I just said, in writing, "hey it was in my checking account"), 
    so I am unsure that they would go for the arrangement I describe. 
    Anybody know about this?


    Tom Gross
    Apollo Computer, Inc.
    Chelmsford, MA