Can you buy a second house with home equity?

Alphonse
Can I refinance the current mortgage taking out as much as the home equity and use that money as a down payment for a second house?

Antionette
you can use any extra cash you get on any purchase you desire. You just need to get a new loan approved for the amount you want. Note however, that the IRS does have limits on the deductibility of mortgages that exceed the original purchase price of the home.

Jocelyn
Yes, but you have to be able to qualify for both loans. You would have to show you have the financial means to carry 2 mortgages. Also, an investment house will need a larger deposit.