Is there a way to get a mortgage for a second house while first house is on market to sell?

Question

I have asked a few questions here before and got some really good advise from people....so here is the situation. I am in the army and just came down on orders to move across the country. I have very little equity and $20k in debt, my credit is 700 give or take 5, and I might be able to put $2000 for a downpayment. I want to purchase a property around Fort Benning, GA and move into it and then sell my current house in Fort Lewis, WA once the pros come through and fully clean it up. Is there a way to do this? If yes can you elaborate a little please. Thanks

Answer 1

Hi Sir Govt Mule, thank you for protecting our country. You've got a few choices to choose from. I'm a loan officer for a national bank by the way so I'd be happy to help you out if you wished. Being in the military you can use your VA benefit for a no money down purchase for your new home in GA. You could also get a 2nd mortgage/equity line for your down payment against your home in WA (which has not been hurt much value wise as other parts of the country) which would get paid off once it sells. Another even better product most banks/credit unions offer is a "bridge" loan (also against your current home). This would give you 6 months w/no payments (allowing you to sell your home in WA ) so you can buy and live in your GA home in the meantime. If you feel you may be stationed back in WA later you might consider keeping it as a rental as the WA market still continues to appreciate, but that's quite a distance if something should go wrong. You've got a good credit score despite some debt so it is doable as long as your new house payment is in line with your income, and in this housing market you should have your choice of sellers in GA as that should be a more affordable market than WA in general. Good Luck to you Sir!

Answer 2

Yes, as long as your debt to income ratio is okay and you would qualify for the combined mortgages. You can also try a bridge loan. However, just be really careful. It might be cheaper to rent something short term until the last house sells. Houses are selling really slow right now. Mine has been on the market for several months in a market that only a year and a half ago was selling houses within 3 days. My house sold to us in 7 days. Now we can't find a buyer. Things change in the market all the time and it is best not to have any regrets or lose a house due to foreclosure because you can't make both payments.

Answer 3

Hi there

Look I am from Australia and what we do here is called a 'Bridging Loan'

This means a loan for the sum you will receive after your first property has sold and after the loan over the first property is discharged.

A bridging loan will alow you to place a good deposit down on your new property just as if you had already sold the first property.

Brisging loans are a lot easier to obtain if you have a signed Contract of Sale of the first property witha settlement date booked.

Hope this helps!

Answer 4

I doubt highly that you will be able to do what you propose. You can only qualify for two mortgages if you have the income to support both payments. If you can handle double payments until the first house sells, you may be able to pull it off, and your income level will be what determines this.

Do remember that the first house may not sell rapidly, and you could be facing double payments for quite some time.

Answer 5

you can qualify to buy a second home based on the distance
from the first home, and your credit scores, debt, etc.

The only variable is your income.

An option is to lease it out on a lease purchase, especially since you have so little equity, and then use that additional income
to offset the mortgage payment, to help you qualify for the new
mortgage.

Scott C.

www.HomeCommandos.,Net

Answer 6

get a bridge loan