Is it possible to carry two mortgages

The purpose of the property can dictate whether you qualify for a second mortgage. If the property is used as a second or vacation home, the same terms and conditions as a first mortgage apply.

However, if the property is a rental, the bank will be more stringent. The repayment is predicated upon successful collection of rent. The lender will want to see a lease agreement and possibly look at the financial capacity of the tenant.

Also, because an investment property poses a higher risk, the lender will have a lower loan-to-value limit, usually 70 to 75 percent. Carl Carabelli has been writing in various capacities for more than 15 years. He has utilized his creative writing skills to enhance his other ventures such as financial analysis, copywriting and contributing various articles and opinion pieces. If you lock into a year-long lease, Brown warned, that handicaps your negotiating position with a buyer and the market for homes in your area could worsen during that period.

Plus, tenants may damage the property; you may have to get more liability insurance; and while you'll get a tax write-off for depreciation on the house, when it finally sells you may have to subtract that depreciation from your tax-free gain. Often, the real reason a house won't sell is not disinterested buyers, but a seller who falls prey to "need-based pricing," Brown said.

As in, "I need to get X-amount because that's what I paid for it. If you're having trouble stomaching a 10 percent price drop, calculate how much you'll be spending every month to keep the house on the market and figure out at what point the delay in sale will eat up that extra 10 percent. For more tips on selling a home, click here. Here's what to do. Straddling the hump For starters, if you've got enough in cash savings, you can tap those reserves to make a big enough down payment on the second home so that you can secure financing for it in spite of your other mortgage.

Rent for a little cash relief Whatever financing route you choose, there's no easy way to make your problem disappear. Get serious about selling The best solution, of course, is to sell your old home. Click to compare top local real estate agents. Stuck with two mortgages.

Your old house hasn't sold and you're about to commit to another. When your house won't sell. To renovate or move? Timing is everything when it comes to buying and selling homes at the same time.

Or maybe your home inspections reveal some flaws that threaten to kill an existing deal. Any of these four strategies — listed in order of preference — can help you with buying a house while selling your current home.

You may be able to earn money to cover your soon-to-be mortgage payment by offering the existing occupants extra time to stay while you sell your property. They work well for sellers who either want or need to take their time moving.

To complete this form, you'll need to provide your Social Security number, full name and address. You'll need, too, to provide information about your employment, salary, monthly debts and gross monthly income. You'll have to state that you have not gone through a bankruptcy or foreclosure in the last seven years. Send your loan application and the copies of your financial documents to your lender.

Your lender will then begin the process of determining whether you can afford two monthly mortgage payments. Give your lender permission to run your credit. This is an important part of the loan process, and will give lenders your three-digit credit score.