Buying a 2nd home with the equity of the first? (contingent, disclosure)

[2beamissourian]

We presently own a home that is for sale in Illinois .. well its a home on 40 acres w/ pond.
We are looking to buy down in Missouri.

Is there a way to buy a home in Missouri with the equity of our home / ground farm ??

We have atleast 125 K in equity (I am thinking closer to 200k)

I need advice please!

I hope this is the right forum!

[walidm]

Originally Posted by 2beamissourian

We presently own a home that is for sale in Illinois .. well its a home on 40 acres w/ pond.
We are looking to buy down in Missouri.

Is there a way to buy a home in Missouri with the equity of our home / ground farm ??

We have atleast 125 K in equity (I am thinking closer to 200k)

I need advice please!

I hope this is the right forum!

Are you working with an Agent?

Do you have a buyers agent on the Missouri end?

Have you talked to an appraiser to see how much equity you have?

The easy answer is yes, you can buy a new home with the equity, as soon as you sell the home. Your equity, is now your cash, is now your down payment.

[ch123]

Originally Posted by 2beamissourian

We presently own a home that is for sale in Illinois .. well its a home on 40 acres w/ pond.
We are looking to buy down in Missouri.

Is there a way to buy a home in Missouri with the equity of our home / ground farm ??

We have atleast 125 K in equity (I am thinking closer to 200k)

I need advice please!

I hope this is the right forum!

Go to a lender and first find out out if you can refinance your current home with a "cash out" of your equity. Then you can use that "cash out" to refinance your 2nd home. Of course all this depends on your income and credit score and the value of your current house.

[walidm]

If you wish to make an offer on your new home - discuss with your agent a contingent offer. In a nutshell, you are submitting a contract contingent on the fact that I will purchase your home when my home sells.

Your Realtor should be able to provide all of the info you need for a contingent offer.

[walidm]

Originally Posted by ch123

Go to a lender and first find out out if you can refinance your current home with a "cash out" of your equity. Then you can use that "cash out" to refinance your 2nd home. Of course all this depends on your income and credit score and the value of your current house.(As well as your ability to carry two mortgages & pay a higher interest rate on the money borrowed from your home)

You will want to discuss this as well.

[ch123]

Originally Posted by ch123

Go to a lender and first find out out if you can refinance your current home with a "cash out" of your equity. Then you can use that "cash out" to refinance your 2nd home. Of course all this depends on your income and credit score and the value of your current house.

Forget the above. I just saw on another post that you are looking to list or have your house already for sale. If your house is listed you cannot get a refinance to "cash out" your equity.

Your only solution is what WalidM suggested above- a contingent offer.

[olecapt]

Originally Posted by ch123

Forget the above. I just saw on another post that you are looking to list or have your house already for sale. If your house is listed you cannot get a refinance to "cash out" your equity.

Your only solution is what WalidM suggested above- a contingent offer.

Not so. A HELOC could easily be used for the purpose. You may have to withdraw the listing for a while or such to get a HELOC but you can do them perfectly well on a home that is on the market.

There are likely restrictions on how much of the equity you can tap into this way...sometimes restricted to 80% max.

All the other variables come into play...income, credit scores etc. The wisdom of such a move also needs to be thought about carefully.

[ch123]

Originally Posted by olecapt

Not so. A HELOC could easily be used for the purpose. You may have to withdraw the listing for a while or such to get a HELOC but you can do them perfectly well on a home that is on the market.

There are likely restrictions on how much of the equity you can tap into this way...sometimes restricted to 80% max.

All the other variables come into play...income, credit scores etc. The wisdom of such a move also needs to be thought about carefully.

What is not so.
You cannot get a "cash out" if your property is listed. You say the same thing in your post about HELOC. I am really confused now! It's way over my head!

[olecapt]

Originally Posted by ch123

What is not so.
You cannot get a "cash out" if your property is listed. You say the same thing in your post about HELOC. I am really confused now! It's way over my head!

You can get a HELOC on a listed place. I have heard of a bank requiring that it be withdrawn for the closing...then immediately reinstated. Most banks will do a HELOC without that.

[walidm]

Hmm...you're suggesting taking the home off of the market to do a HELOC and then re-listing it?


~pulls out disclosure hat~