Home Equity Loan

Found a home that has equity is there a lender that will do first mortgage and debt consolidation in one loan

I have debt that I want to consolidate into a home purchase, since I found a home that is priced well below appraised value. Since there is already equity is there a lender that will do a first mortgage and second at the same time? This would reduce my debt to income and put me into a better financial situation since I would only have one payment would be lower.

Public Comments

1. By getting a second mortgage you will be at a higher interest rate and introducing a 2nd payment, so it would be like having 2 mortgage payments. Albeit the 2nd one is probably much lower. You should just negotiate a lower down payment and get a larger 1st mortgage. I would consult a mortgage broker, it is much easier dealing with 1 broker then hunting for a lender. Let the broker do the neg'ing for you. They usually find a better rate anyway.
2. Home equity debt consolidation involves keeping the home as collateral. A home equity loan is a secured loan, as there is collateral provided against the loan. This is why the rate of interest offered for this kind of loan is quite low. A home equity loan for debt consolidation<!--also gives the lender the right to take possession of the house in case the borrower fails to keep up with the scheduled payments. It is advisable only for debtors who are certain of their capacity to make regular payments. http://mortgages-finance.awardspace.com/ Home equity debt consolidation in California is an option for borrowers who have incurred a large debt. Borrowers opt for a home equity consolidation loan to pay their other debts, and make one payment to one creditor.Before-->taking the loan for debt consolidation, debtors must calculate all the expenses, charges and extra costs that may be associated with the loan.
3. Not going to happen these days. It's next to impossible to find a lender who will grant a mortgage for more than the purchase price of the property.
4. It is going to be tough to get more than the purchase price of the home. There are a few lenders who might be willing to lend 125% but the interest rate will be on the higher side. You will not know for sure till you ask around and do your research. Use a site like Bills.com to get quotes from multiple lenders, that way you will know the chances of getting the kind of loan you are looking for. You can put your information at: https://www.bills.com/homeloan/purchase/