Down Payment Options with little cash available

[Elizabeth Bower]

We'd like to buy our next flip house before selling our current and would prefer not to take out an equity loan for down payment but we don't have any liquid assets right now to be able to do a down payment payment more than a couple thousand. What are our options? We'll have equity in the flip house pretty quickly to be able to refinance so I'm not too worried about PMI.

[Denise Supplee]

You could look into a bridge loan or a “delayed financing” option, which lets you buy the new property using short-term funds and then refinance once your current home sells. Another option is a hard money loan for the purchase, though rates are higher. You might also negotiate a seller credit or delayed closing to free up equity from your current sale.