I'm looking to purchase an excellent property in my area that just came up as my primary residence. I've met with the seller and will do a by owner transaction. My question is how to structure a loan on the new purchase while trying to sell my current primary residence.
I've heard of the old school bridge loans; what is the trend today? Currently I have one primary residence loan and two investment property loans. I have 800+ credit but the debt to income ratios will be over with the new purchase of around 400k.
@Will Spruill What exactly are you trying to do? Is the seller willing to do short term owner financing until you can refinance him out? Is your intention to buy this new residence, sell the old one, and refinance the new one?
My intent is to buy the new home and sell my current primary residence in a 3-4 month period. The seller is not willing to do financing.
I just need a transition period from my current home to the new one.
I would go talk to a mortgage broker. If you have landlording experience they will usually use the income from your rentals so you would only have to support the old and new house. If that's not possible, you might want to look at renting your current house. Some broker companies will count your house is you have a lease on it. Than you sell it when the lease is up, and if its within the capital gain laws you can still capture your tax benefit on your house.
Your best bet for all this strategy is going to be a knowledgeable broker. I have had my best luck at getting qualified at a small brokerage than at a bank.
@Will Spruill you can always make the sale contingent to the sale if your current home.
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