How To Use Your Equity To Buy Another Property Apr 2026

Most lenders cap your Combined Loan-to-Value (CLTV) ratio at 80% to 85%.

There are three primary ways to pull this cash out, each with distinct features. Can You Use Home Equity to Buy a Second House? | Chase how to use your equity to buy another property

$400,000 - $300,000 = (This is your "tappable" equity). Step 2: Choose Your Access Method Most lenders cap your Combined Loan-to-Value (CLTV) ratio

Equity is the difference between your home's current market value and your outstanding mortgage balance. However, lenders won't let you borrow 100% of it. | Chase $400,000 - $300,000 = (This is

Using your home's equity to purchase another property is a strategy often called . It allows you to use the "unlocked" value of your current residence as a down payment or even the full purchase price for a new investment or vacation home without depleting your personal savings. Step 1: Calculate Your "Tappable" Equity

If your home is worth $500,000 and you owe $300,000, and your lender caps CLTV at 80%: $500,000 × 0.80 = $400,000 (Maximum total debt allowed)