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purchasing a house when 1 hasn't sold

hello I currently own my home that I would like to sell I found a home that is perfect and I love but im not sure what happens if I don't sell my first home I own it outright and the difference between the price of the home I wish to purchase and the home I own would be less than 40,000 any type of loan available that would help?
By kimd326740 from CA Oct 20th 2014
Reply

If you are relying on the funds from the sale of your current home in order to purchase a new home, then the sale would need to take place before you are able to purchase the second home.

Oct 20th 2014

There are a few options with this scenario. You can try to qualify with both payments. This is usually the prefered way. Another option is a Bridge Loan that will allow you roll the equity from one home to the other.Ben Holloway800.800.5378

Oct 20th 2014

You could also do a concurrent close where you close on the sale of your existing home and the purchase of your new home basically at or near the same time (probably one closes one day the other closes the next). Would be happy to discuss further. Jason Wood 760-217-0820

Oct 20th 2014

So long as your income can support the payment/expenses for both properties, you would not be required to sell that home prior to you purchasing a new home.. If you need the proceeds from selling your current home, then lenders will allow you to do simultaneous closings, so you could apply, but you could not close on the new home until you close on the existing home. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Oct 20th 2014

Great question and interesting scenario. The good news is $40K isn't that much to borrower in the overall grand scheme of things when looking at purchasing a house. The not-so-good-news is that most conventional wholesalers have a minimum amount that they will borrower on and your $40K is below that minimum for most but, maybe not all wholesalers. You're probably better served selling house #1 and using that as a downpayment on house #2. HOWEVER, you could take out a conventional loan on house #2 right away if it's a house you REALLY want. The fact that you own house #1 free and clear plays to your advantage when qualifying. - Conor

Oct 20th 2014

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