Two Mortgages At The Same Time
Can you have two mortgages at the same time? The short answer is yes, it’s absolutely possible to have two mortgages at the same time. Depending on your circumstances (for instance, commuting regularly between two cities frequently enough to justify two properties), taking out two mortgages might be an advisable route. You might also want to take out a second mortgage on a property to use as a rental home as an additional revenue stream. However, there can be some challenges to taking this approach.
As is the case with securing a single mortgage, your credit and income levels will play a major role in determining your status for the second mortgage. One of your properties will need be designated as your “primary” residence. Whether you use one or two lenders, you are required to be transparent about the purpose of securing a second mortgage to avoid potential pitfalls such as fraud charges. Your secondary home will have more stringent lending terms and will likely have higher down payment and interest rate requirements. In many cases, you will also be required to have six months worth of payments before closing the mortgage on the second home.