Im looking to buy a personal residence but have not sold my existing home yet. Bank wont approve me until old house is sold because I dont qualify for both mortgages together. I am putting 50% down on a $160K home.
Do I have any other options for a mortgage? I have enough cash to float both loans until the first one sells, I dont want to lose this new house I found.
@Dave Charron could you work out a lease with the second one with an option to purchase when yours sells? Or make an offer contingent on your existing home selling? Contingencies in my market are hard for sellers to accept because homes sell so fast, but maybe they are more acceptable in New York?
@Dave Charron , you can get a private lender to lend you the remaining 50% so you can buy your next personal residence. Then pay him or her off once you sell your home.
Can you make your offer on the new house contingent on the sale of your existing residence? Another option might be to rent the new house until you sell the existing house.
What your looking for is called a bridge loan. Its a short term loan, typically 6 months, to cover the time it takes to sell your existing loan. This was very typical during the construction boom. I was just offered a bridge loan on a rehab project so I know they are still available.
from the few hard money lender websites I went on, they wanted 5 points and 11-15%
even if I only borrowed $60K thats $3K in points and $660 month interest.
Is that what you guys are proposing?
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