Home Equity Loans – second mortgage

Dan asked:


We have a mortgage in Canada but are permanent residence is now in the United States. The home has been a second home/vacation home but we are now wanting to purchase a new home in the US. My mom is going to take over our payments in Canada and live in the house. When we apply for a mortgage do we have to report the mortgage payment in Canada as we won’t have a monthly debt but we do have alot of equity that contributes to our net worth. We are worried we won’t get approved because it will hurt our debt ratio. I was told that because it won’t show on a US credit report and the debt is another country we don’t have to report it but our income tax returns shows the mortgage. Any advise greatly appreciated

ARCHIE

723 asked:


We are wanting to apply for a mortgage to purchase what will be our 2nd investment property. We currently own our home & have 1 rental property. However, we do not have the cash available for the required 10% down payment for an investment loan. Since the property is very nearby, my husband and I would be able to categorize it as a second home purchase for personal use. Our question is: If applied for as an investment property, are there 0 % down – type investment loans we could look at? (we are not wanting to use equity on the other properties…one has been used to that extent already for home improvements). If applied for as a 2nd home, what are the requirements for that type of loan?

COLBY