Two Family Primary Equity to buy Primary Residence
Hello,
I currently have a mortgage on a two family house which I live in one unit and rent out the other unit. I purchased the home 4 years ago as my primary residence and have had tenants with steady income on three tax returns from the rental unit. When I purchased the home a few years ago, I put down 20% and have seen an increase in equity since it was purchased. I have also saved money to put down on another house and would like to do so this fall. My family is outgrowing the unit we currently live in and we would like a single family home while holding onto the two family. This was the plan when we purchased the home a few years ago.
My question is around purchasing the next home and moving into it as my primary residence. This means I am moving from primary residence home-A to primary residence home-B and my old primary residence home-A will then be an investment property. My plan is to use both equity from my current primary home-A and cash to make the purchase of primary home-B. To do so, I would apply for an equity loan, cash-out refi, or HELOC first and then apply for a loan to purchase the second home. However, I am concerned about restrictions around using an equity option and then moving out of a primary residence to another. Therefore turning the old primary that the equity line is on into an investment property. This seemed like an easy process at first, but now I am concerned about the best way to go about this without violating my current loan, a future equity option, and potentially putting this plan in jeopardy.
I would like some advice on the best way to strategically go about this process.
Any insight will be greatly appreciated.
JP