equity in home for new home down payment

michelle2_growOctober 26, 2009

We would like to sell our home but know that it would show better if we could move out ... we've found a home we are interesting in buying, the problem is we can't come up with the down payment. Is there such a thing as a loan on the equity of the home we now own, (paid for in full) to use on the down payment on the new home. After selling the home we're in the money would go to paying off the house we buy, in the meantime would we have two loan payments the equity loan and the balance on the home loan ?

Hope I made some sense ?? The new home is right around 200.000.00 same as what our old home is worth.

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ncrealestateguy

Take 10 minutes and speak to a lender. But, I believe a Bridge loan might work.

    Bookmark   October 26, 2009 at 7:09PM
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calliope

What he said. You sound like you could be in a 'good place'. Go talk to some lenders.

    Bookmark   October 26, 2009 at 7:14PM
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qdwag

If your current home is NOT on the market yet, get yourself a HELOC and use that as a down payment on a new home...Actually i told a loan officer,my house WAS going on the market,and they still gave me a HELOC on it,which i then used as a downpayment on the home we purchased

    Bookmark   October 26, 2009 at 7:39PM
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michelle2_grow

My husband's way of asking the question (below), it might make more sense then my previous question. Thanks for all the replys,I appreciate it.

Currently own home, mortgage free. Have been advised I can use the equity of current home toward purchase of dream house (listed at amazing price), with the intention of selling current property (with commercial value) at later date when more valuable. Is this a practical undertaking? What percentage of current property value would be offered as equity? Would I essentially be paying interest on a HELOC on currently owned property while paying off a mortgage on new home?

    Bookmark   October 27, 2009 at 7:56AM
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qdwag

very practical...Can't say what a lender would do, but being mortgage free,you should be able to draw a significant % of the equity in the home....This should be very easy for you...best of luck

    Bookmark   October 27, 2009 at 8:17AM
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