company will refinance my current home and give me an equity pullout line of credit to cover the down payment on my "new" house is this an okay solution to buying a new home without having to move and rent a home until my new one is finished being built.
My new house will not be done until next year.
2006-07-05 09:01:26 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It is if you are not required to sign an Occupancy Statement at closing specifying that the home upon which you taking out the equity loan will continue to be your primary residence. Even then it may be okay if you will be occupying the residence for at least 6 months. It will depend on your investor's requirements.
First Horizon Home Loans has a loan called a Departure Line of Credit that was designed specifically for this purpose.
2006-07-05 09:15:14 · answer #1 · answered by Anonymous · 0⤊ 0⤋
AS A PROFESSIONAL IN THIS INDUSTRY, BE VERY, VERY CAREFUL ON THE ROAD THAT YOU ARE ABOUT TO EMBARK ON.
Departure lines of credit are a good thing, but what if your home does not sell for the amount that you refinanced at??? What if your home sits on the market for 6 moths and you cannot find a buyer that would be willing to give you what you want for the home.
I have been party to situations like this one, and the stress that it has caused is overwhelming on ALL parties involved in the transaction.
Furthermore, I know First Horizon's sales tactics, and they are just not a company that you want to involve yourself with. The mortgages that they write have undeniably been inflated. I would hate to see you go through this.
Your best bet is to be patient. If a builder cannot pre-approve you on your current status, then go to another. Also, there are plenty of loans out there that will give you 100% financing on the new home, along with giving you time while the new home is being built.
If you would like some more advice on this, feel free to contact me at timothy.kazee@americanhm .com and I would be more than happy to assist you in any way possible.
Watch out and be on guard. This is NOT a situation that you would want to get into. Haste will be your best friend today.
Good Luck!!!
2006-07-05 22:45:46 · answer #2 · answered by Kaz 3 · 0⤊ 0⤋
If you're in Illinois....I can do your loan!
2006-07-05 16:03:22 · answer #3 · answered by jkhosho 2 · 0⤊ 0⤋