Client needs access to equity to relocate

[Brent Pearson]

I have a client who lives in King County whose current house has no mortgage and should clear one million when it sells. They're wanting to sell it and move south to put some of that equity in the bank. They don't want to take out a mortgage on the new house, which they would be required to keep for 6 months, but was told by their bank that they could only get a HELOC of $190,000, which is well short of of what they'd need to make a cash offer down here in Olympia, and contingent offers aren't going to get a second look in this market. Does anyone have ideas / suggestions on how we can use the equity they're sitting on to get this done? Thanks in advance for any assistance / input you can provide!

[Bill B.]

How bad is their credit or income if the heloc is only good for 20% LTV? Try another lender, 70%+ is common

Do a cash out refi on their current property for up to 80%. Rent until property sells. Sell with a 30 day lease back. Buy with seller financing with 6-12 month ballon. I don’t BELIEVE there are any laws stopping them from paying off the loan 1 month after they move in. If thee is, then pay off all but $5,000 when they move in. At today’s interest rates that would be $150/mo in interest, probably less than the cable tv bill and a total under $1,000 for 6 months. Lots and lots of options.