How do I buy a new home before I sell my home?

Question

I currently own my home (no mortgage) and have found a bank owned foreclosure in great shape that I want to buy to live in. To purchase the property I would have to sell mine. I want to put a large down payment with the sale of my house and have reasonable payments in the new one ( there is not a great difference in the value of the two). How does this work? Anyone know anything about bridge loans? Should I take out an equity loan to pay for the new one until I sell? Help!?!?

Answer 1

Also consider Bridge loan as an option. Certain programs are made for your exact situation. An experienced Loan Officer will be very familiar with your situation and will have some good scenarios to present you.

Answer 2

On a foreclosure, you can't have a contingency offer, meaning you can't wait to sell your existing house. Since you don't have a mortgage payment, why not buy the house out right, then sell your house. Once you have sold your house, you can either refinance to reduce payments, or pay off the loan. The only down fall to refinancing is that you will have to pay closing cost again. I would not suggest an equity loan just for the simple fact that I would not want to loose a house that's already paid for in the event I couldn't make the payments on the new house. I think I am a chronic worrier though, but I would not want to take the risk. what if you found out tomorrow that you would be loosing your job- then you would loose both houses. Anyway, that's my advice to you!!

Answer 3

If the property is in foreclosure than make sure that the bank has approved the sale for the amount you requested. Short Sales can be considered foreclosure but in fact the bank has not yet agreed upon the selling price. Make sure all you ducks are in a row. If you have great credit than go 100%. If you want a Heloc than go to a Credit Union. Better rates and you possibly get a teaser rate for a couple of months until your other house goes into escrow. Teaser rates can start in the mid 3's sometimes. This way you wont have to pay too much of what you had borrowed. Good luck.

Answer 4

You answered you own question. Just tell the lender on your new home that you need a bridge loan. They'll sort it all out for you.

Bridge loans typically don't have any payments for the first 6 months, and are interest only for the next 6 months. That's usually plenty of time to sell your home.

Answer 5

in case you've already got a private loan on your cutting-edge residing house and that's not an pastime basically personal loan, you may't basically swap over and initiate paying basically pastime. And getting an pastime-basically personal loan in this new residing house, fantastically because you've already got the different personal loan, isn't actual in all probability until eventually you've a very severe income and little or no different debt. If a economic company is prepared to finance some thing like this, make very confident that you're waiting to carry both funds for a protracted era of time. like you reported, the housing market is undesirable - you do not favor to finally end up dropping both between the houses because you get your self into some thing you may't pay for. there'll be yet another "proper residing house" later in case you do not finally end up with this one.

Answer 6

If you currently own your home free and clear, I don't see why you couldn't do either.

If it's a short term thing, then go ahead and borrow against the old home and use that as downpayment on the home.

The only thing you might have to consider is this. Will you be able to afford the payments on the new home and the home equity until the old home is sold.

Answer 7

bridge loan.

Answer 8

either go contingent or get a Heloc

Answer 9

http://calihomes.blogspot.com