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I own a small house in upstate NY and have no mortgage now.
Want to sell this and use money to purchase another house possibly in another state which will probably be more money but under $20,000 difference.
I'll need a mortgage for a difference in price between to the two homes.
I'm 57 and there won't be a job transfer so I'll have to find something where I move to.
What would be best way to proceed?
I have money in an inherited IRA but need to keep income below a certain level to be eligible for VA healthcare.
If I were doing it I would sell the house, put the money in the bank and rent someplace in the new state for six month while you find work and become familiar with the local real estate market.
You don't want to buy something long distance and then find out it's in a crappy part of town.
Lenders will want job and address stability but if all you need is a small loan to go with a large cash purchase, you shouldn't have too much trouble getting it.
If I were doing it I would sell the house, put the money in the bank and rent someplace in the new state for six month while you find work and become familiar with the local real estate market.
You don't want to buy something long distance and then find out it's in a crappy part of town.
Lenders will want job and address stability but if all you need is a small loan to go with a large cash purchase, you shouldn't have too much trouble getting it.
I agree, renting to start with allows you more time to get established and positioned in order to search for the perfect house that best suits your needs.
Renting also eliminates all of the stress and coordination involved when trying to sell and immediately buy a house.
It also makes you a more viable buyer since you will not have a contingency clause to sell a home prior to purchasing a new one. You will just need a mortgage approval commitment, which in your case, it should be fairly easy to obtain. This all helps in becoming a pre qualified buyer that should work to your advantage when making an offer on a house.
I own a small house in upstate NY and have no mortgage now.
Want to sell this and use money to purchase another house possibly in another state which will probably be more money but under $20,000 difference.
I'll need a mortgage for a difference in price between to the two homes.
I'm 57 and there won't be a job transfer so I'll have to find something where I move to.
What would be best way to proceed?
I have money in an inherited IRA but need to keep income below a certain level to be eligible for VA healthcare.
It's going to be hard to find a lender who would do a mortgage for $2OK. When I was looking a few years ago most places had limits of $50K. What you can do is say your home is worth $100K and you want to buy a home for $120K somewhere else, get a $15 year mortgage for the lowest they will lend to you, say $70K and put down $50K. Make sure there is no prepayment penalty. After you close pay $50K and you now have a $20K mortgage that you can pay in 15 years or less.
I don't think money pulled out of an IRA would be considered income, especially if you use it to buy a house. I would ask first at some VA forums, and then find info online at the VA about it and call and get the same answer in person, if you get a different answer call back and ask someone else who may know or can verify that previous answer.
I don't think money pulled out of an IRA would be considered income, especially if you use it to buy a house. I would ask first at some VA forums, and then find info online at the VA about it and call and get the same answer in person, if you get a different answer call back and ask someone else who may know or can verify that previous answer.[/quote]
It's going to be hard to find a lender who would do a mortgage for $2OK. When I was looking a few years ago most places had limits of $50K. What you can do is say your home is worth $100K and you want to buy a home for $120K somewhere else, get a $15 year mortgage for the lowest they will lend to you, say $70K and put down $50K. Make sure there is no prepayment penalty. After you close pay $50K and you now have a $20K mortgage that you can pay in 15 years or less.
The issue with this solution is that the OP will still have a mortgage payment due each month based on the initial mortgage amount. It won't reset to payment on a $20,000 loan simply by paying off a large part of it.
The issue with this solution is that the OP will still have a mortgage payment due each month based on the initial mortgage amount. It won't reset to payment on a $20,000 loan simply by paying off a large part of it.
Then he can do 30 year and for a smaller amount and pay down to only owe $20K. Even a $60K mortgage will only be about $300 a month plus insurance and taxes.
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