Question: can i use home equity loan for down payment?
Answer: You can take out a home equity loan (HEL) or home equity line of credit (HELOC) to make the down payment on your second home. Your first home serves as collateral. Advantages of HELs and HELOCs as a down payment include the following: ... You may be able to deduct the interest paid on home equity debt, up to $100,000.