question for mtg lenders…i have a home for sale ( under agreement ) p and s signed, with closing date. I also have 2 other properties for sale right now ( listed not sold or under ) … the home i have under agreement is my residence, so i am applying for a mortgage for a new home…i plan to put approximately $100,000 down on the new home with the proceeds of the sale of the other home…taking into account i have 2 other homes for sale, and im kinda cash poor right now, until the sale of that home that’s under…will i be able to qualify for another home? …i can provide proof of the signed p and s, and the " listings " of the other 2 homes…also, i should ( after putting $100,000 on the new home still have about $80,000 leftover in cash…thanks for any input or help in approaching a lender with this situation, i plan on doing a " no income verification " loan… , my fico is 650 mid, no lates, just high debt cause of the rehab cost, wife’s is 715 mid…like i said cash poor right now… not much in the bank, but i have approx $75k in retirement and deferred accounts…thanks all…
I would suggest pulling getting a HELOC on one of the properties currently listed to use as a downpayment on your new home. More than likely the best structure would be 20% down “stated” income documentation.
Based on your situation, I would have to agree with Patrick. However, obtaining a HELOC may prove difficult if your house is already listed.
Are both of the other houses listed currently rented out?
no they are not rented out…one is a flipper…owe $319k on it…listed for $385k…did have it under agreement for $382k , but financing fell thru for the buyers ( it’s appraised at 399k ) …and the other is a vacant single family…on the market
On the flipper you may want to use appraised value and offer seller financed second to help the buyer whos financing fell through.
The rented property…does it have equity?
watch the capital gains tax.
i dont know if you knew this, but if you refi your primary for the difference of what you owe and what you want then you [shadow=red,left]may [/shadow] be bypassing the capital gains tax. i know you plan to put the proceeds into another primary, but if you have any proceeds uncle sam is watching.
Maybe I missed something, but you guys are telling him how to get his down payment funds. This doesn’t appear to be what he was asking for? His question was if he would still be able to qualify once his home sells and he uses the proceeds for the down payment.
You should be able to show your sales contract to the lender so they know where the down payment is coming from and can cancel out the expense of your existing home. It sounds like you may be able to qualify but there were some other factors that were never addressed.
I think the other responses
reflect a situation in which your home wouldn’t be closed in time and you would need to get DP funds. In that case I would have recommended a bridge loan, much better for that scenario.
This uses the equity in your primary for down payment of the new purchase.
If you are having a tough time moving these homes,
Have you ever tried running an add like this, and see how many phone calls you get !
Owner Financing/No Bank Qualifying with 10% Down
OR
100% Financing with Payments As Low As $1,280
Beautiful 4br/4bth contemporary home in gated community. 2355 sq/ft, enclosed in ground pool, sprinkler system, much more. $325k. Home will be contracted to 1st qualified buyer on Saturday July 29th 2006. NO EXCEPTIONS. Call for details 407-555-5555.
We contracted this home in 4 days after it had been on the market for 6 MONTHS !
At $20k over the appraised value,
Thought it might help with the situaton…
MTG,
That is killer. I have a rental property I have been considering unloading, but have been to consumed with work to get to it. Using your posting I can hopefully get rid of it quickly and not have to pay a realtor. Thank you.