No Down Payment while old house on market - what to do! (loan, heloc)
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We are selling a house in a slower market in TX. We are trying to buy a home in Florida. Worst case scenario we rent a house in Florida but we are considering buying right away to avoid moving twice with our 3 kids. We own our house in TX (no mortgage payment) worth $400k and would like to buy a $600k house in FL. We don't have a down payment for the FL house; all money is tied up in equity in our TX house. What are our options? HELOC? "Equity builder"?
Va and rural development loans go to 100%, if you qualify.
A HELOC can be used to access your equity for a down payment on the next home. You would have to qualify with that loan as well as your new mortgage, but those are solutions.
I would rent for a year, then you will know what neighborhood you really want to live in. I also wouldn’t have 2 mortgages at one time. Where is your house in Texas located? Can you afford both mortgages for awhile easily. Just my opinion
This might sound snarky, but if you don't have a mortgage payment, what have you been doing with all your income? As soon as you knew you were going to be moving, you should have started pretending you had a mortgage payment and putting money aside.
We are selling a house in a slower market in TX. We are trying to buy a home in Florida. Worst case scenario we rent a house in Florida but we are considering buying right away to avoid moving twice with our 3 kids. We own our house in TX (no mortgage payment) worth $400k and would like to buy a $600k house in FL. We don't have a down payment for the FL house; all money is tied up in equity in our TX house. What are our options? HELOC? "Equity builder"?
Can you carry both houses if you have a HELOC to pull a down payment?
I like the HELOC, but be certain to clarify with the bank that you will be going on the market.
Talk to lenders in Florida to get a game plan, but it seems to me you should be able to make this happen fairly painlessly.
This might sound snarky, but if you don't have a mortgage payment, what have you been doing with all your income? As soon as you knew you were going to be moving, you should have started pretending you had a mortgage payment and putting money aside.
You don't pay off a house to go buy another. The payoff had to have been months, if not years ago. That leaves a lot of time to rebuild savings.
Who says? You don't know the OP's reason for the timing of the move. Perhaps the mortgage was just recently paid off, and circumstances arose that necessitated a move before there was time to save a down payment.
I would agree with other answers to rent first. Unless you're moving to a very small town, you'll want to get an idea of which neighborhoods you like best before you buy in an an unfamiliar location.
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