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Today we have some advice for you about how to finance another home while selling your own. To help me explain this, I have Todd Gydesen with Guild Mortgage.
So, how do you finance a home while selling your own? You need to get creative with a down payment because usually the funds from the sale of your home would be used for this. You can borrow against a 401K or perhaps you could liquidate some other assets.
Your debt-to-income ratio will be affected because you need to qualify to pay off both of your monthly mortgages. This can get tricky and it will put people out of their comfort zone, but that doesn’t mean that it’s impossible.
So, how do you finance a home while selling your own? You need to get creative with a down payment because usually the funds from the sale of your home would be used for this. You can borrow against a 401K or perhaps you could liquidate some other assets.
Your debt-to-income ratio will be affected because you need to qualify to pay off both of your monthly mortgages. This can get tricky and it will put people out of their comfort zone, but that doesn’t mean that it’s impossible.
Recasting the loan is something else we need to explain. This is where you buy a home without selling your first home, and then you sell it and have all this equity that you did not use to purchase the second home. We can take that money and apply it to the principal of your second home, and this will also lower your monthly payments! You need to check if your lender will allow this, but it’s totally feasible.
If you have more questions about this, please don’t hesitate to contact me!
If you have more questions about this, please don’t hesitate to contact me!
Great information Joe and Todd.
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