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I'm in the process of selling my home to buy a home in another state to be closer to family. I don't have a mortgage due on my current home till Jan 2023. Our current house has been listed for roughly 20 days now and we have no offers as of yet. We are debating,
1) Proceed to open a HELOC as a second mortgage to buy a house in the other state and move there while our current house sits to sell on the market. Pay off the 2nd mortgage once we close on our current home.
2) Rent the current home
3) Stay put, continue living in this home till we sell as it would be a seamless process within maybe leaseback on current home.
Hope some of you have taken this approach that can provide some guidance.
1) Most lenders will require that your home not be for sale for a HELOC. You need to do the HELOC as a strategy before your home goes up for sale.
2) How comfortable are you with being an out-of-state landlord?
3) Is it realistic to negotiate a rent back on your home in current market conditions for your area? The rent-back requirement may deter some buyers.
If you were going to use home equity for your downpayment on a new home, you need to chat with a lender to confirm you will qualify for the second loan with your home as a rental.
If no action in 20 days that suggests that the market is not hot where you live. I would not expect that a buyer, when you find one, will be receptive to a lease-back.
Possibly your price is too high for your market.
If you price it well and there is some action in your market then buying and moving is not the worst option. If you are willing to move in two stages you can leave some of the furniture for a spare decluttered look.
1) Most lenders will require that your home not be for sale for a HELOC. You need to do the HELOC as a strategy before your home goes up for sale.
2) How comfortable are you with being an out-of-state landlord?
3) Is it realistic to negotiate a rent back on your home in current market conditions for your area? The rent-back requirement may deter some buyers.
If you were going to use home equity for your downpayment on a new home, you need to chat with a lender to confirm you will qualify for the second loan with your home as a rental.
So what are my options if I want to move into a house first and let my current home sell. Can i take a second mortgage out at 5%?
So what are my options if I want to move into a house first and let my current home sell. Can i take a second mortgage out at 5%?
We need some numbers. What is your house worth? Amount of existing mortgage? What price house are you looking to buy in new location? How much CASH do you have available? Would you qualify for two mortgages at the same time? How is your credit rating?
It sounds like you are short on cash and equity and may have difficulty swinging a deal to own two houses at the same time.
I want to mentally be here or there. I feel unsettled and want to make the move. Also If i dont move now Ill be stuck for sometime not being able to sell the house as market is slowing down tremendously.
We need some numbers. What is your house worth? Amount of existing mortgage? What price house are you looking to buy in new location? How much CASH do you have available? Would you qualify for two mortgages at the same time? How is your credit rating?
It sounds like you are short on cash and equity and may have difficulty swinging a deal to own two houses at the same time.
House worth $800k on zillow with $180k left. Looking to buy a house within range of $650k. Have only about 40k cash total. Yes would qualify for second mortgage with 5% down according to lender and credit is 820+
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