Can I Use a Home Equity Loan to Buy Another House? Yes, but it may not be your best option.
If you have a significant amount of equity in your primary residence, you can tap into it through a home equity loan. You can then use that money for any purpose that you wish, including buying a second home or an investment property. Using a home equity loan to buy another house is not without risks, however, so it’s smart to understand the pros and cons before you proceed.