Expert: Denise Monaco - 6/6/2008

Question
I currently own a home that has been on the market for almost one year. It was my first home, but we've outgrown it drastically. My realtor suggested that I can take out a second mortgage and she would put a renter in my first home. My question is this. Can I receive downpayment assistance on a second mortgage? I do not have any savings, but my family really needs a bigger home and a better school system. Thank you for your answers.

Answer
Hi Helena

That is a very risky situation to be in especially in this market.  You need to make sure the renter is solid because I'm sure that you will need the rent payments to pay the mortgage on that property.  As for the other mortgage on a new home, I'm not sure what state you are in and what the guidelines are for that state, they are usually for 1st time homebuyers depending on the grant that you get.  I would have your realtor check on the guidelines for the grant programs that are available.

Good Luck

Denise