I know the housing market is bad. Houses in my area aren't selling. Prices are going lower. I've found my perfect home and I want to buy it. I think I should be able to just pay interest only on both homes for a while till the market gets better or if I'm lucky my old house sells. Any better way to do this? I want the new house sooner than later etc. I'll also have to pay pmi unless I can pull lots of money out of thin air.
2007-09-10 06:00:56 · 12 answers · asked by KidBao 3 in Business & Finance ➔ Renting & Real Estate
I plan on waiting as long as possible and of course try darn hard to sell my current property. I've been looking for houses for a year now and this is the first one I've found that I like, house and location, schools etc. it's perfect, I gave up looking a month ago cause I hadn't found anything even remotely close.
2007-09-10 07:49:34 · update #1
DO NOT BUY THE OTHER HOME W/OUT SELLING YOUR OLD HOME FIRST. There are many borrowers who are foreclosing on the 1st home..and ruining their credit.
THERE WILL BE OTHER HOMES THAT YOU WILL LIKE.
It's not worth sacrificing good credit...your familie's future because of a 'home'. This is called vanity.
Do not put yourself in a predicament that nobody will be able to save you! Sell your house first......there are a lot of ppl pulling out at the closing table!
make all your future purchases on contingency of selling your 1st home.
2007-09-10 06:13:58 · answer #1 · answered by Anonymous · 2⤊ 0⤋
If you already have a mortgage on your current home and it's not an interest only mortgage, you can't just switch over and start paying only interest. And getting an interest-only mortgage on this new home, especially since you already have the other mortgage, isn't real likely unless you have a very high income and very little other debt.
If a bank is willing to finance something like this, make very sure that you are able to carry both payments for an extended period of time. Like you said, the housing market is bad - you don't want to end up losing BOTH of the houses because you get yourself into something you can't pay for. There will be another "perfect house" later if you don't end up with this one.
2007-09-10 07:34:54 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
My parents waited until they sold their house to start seriously looking at a new one. This meant that they had to find a house w/in 30 days! Needless to say, they ended up in a rental b/c they didn't find a house in time. Renting out your existing home may be an option--tell the person who's renting that that's the case b/c you may need to give them 30 days notice right away. Also, you probably want to add a contingency clause to any home you buy before you sell--that way if you don't sell, you aren't obligated to buy the new house. You will lose any money you've put into the new house, though.
2016-05-21 04:00:26 · answer #3 · answered by ? 3 · 0⤊ 0⤋
you need what is called a swing loan. Typically the lender for your second house will need to believe you are going to be able to sell your first house in a reasonable period of time for the amount you specify. Since houses in your area aren't selling, they will understandably be cautious about your proposal. If you have a realistic selling price for your house and are planning to use a realtor, the bank might be a little more comfortable with it.
2007-09-10 06:12:51 · answer #4 · answered by John M 7 · 0⤊ 0⤋
I doubt if you will be able to get an interest only loan on the new home. From what I read, those loans were in the past. I would be very careful for your old home may not sell for a very long time.
2007-09-10 06:08:06 · answer #5 · answered by Anonymous · 1⤊ 0⤋
They have loans that help people out - bridge loans or something like that.
You could always write it in the contract that your offer is contingent on the sale of your house. They may want a time frame though.
2007-09-10 08:05:16 · answer #6 · answered by Roland'sMommy 6 · 0⤊ 0⤋
Make the buying of the new home contingent on the selling of your home. That way you do not end up paying two mortgages at the same time.
2007-09-10 06:08:09 · answer #7 · answered by cellardoor214 1 · 0⤊ 0⤋
sell your home first..... the only way you can bridge them is if yours sells before the other one closes.
If you really want this other home.... ask for a long closing date, or buy on the condition that you sell your present home.
There is an escape clause that you can use.... if somebody else comes in with a cash offer.... then you will have 72 hours to waive your sale of property condition.
2007-09-10 07:50:53 · answer #8 · answered by Jim M 2 · 0⤊ 0⤋
Well have to talk with any lenders to see if they will go along with your scheme? I asked that nicely because I don't know what your financial situation is, but are you crazy? !!! This whole loan crisis is due to interest only loans and adjustable loans where the borrower couldn't qualify.
You were just pulling our legs weren't you?
2007-09-10 06:17:09 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Consider putting a tenant in your current home and purchasing the other for your primary residence.
2007-09-10 15:35:43 · answer #10 · answered by divepassion 2 · 0⤊ 0⤋