Key takeaways You can use home equity to help fund the down payment, closing costs or even the full purchase price of a second home, typically through a home equity loan or a HELOC. To qualify for one of these products, you’ll generally need quite a bit of equity, enough to maintain the 15% to 20% cushion most lenders require after your homebuying expenses. You’ll also need strong credit — often 680 or higher — stable income, manageable debt and enough cash reserves to support two properties. Buying a home with your equity can make you a more competitive buyer, but your primary residence will be at risk if you can’t afford the payments. Tapping into your home equity can be a financially savvy shortcut to buying a second home without having to save another down payment from scratch or draining your savings. However, it also raises the stakes for your personal finances.…