House Purchase Financing Options Without Selling Current House

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Topic Author
brushwood
Posts: 34
Joined: Fri Mar 28, 2008 10:28 am

House Purchase Financing Options Without Selling Current House

Post by brushwood »

I am planning way ahead for a move from FL to CO in about seven months. I'd really like to purchase a house in CO before selling the one in FL. The market here in FL is super hot, so I expect the house to sell very quickly once I list it (assuming no major shift in the market in the next few months). The market in CO is similar, in that I don't want to try to coordinate a contingent sale while moving my family. So, here's what I have:

- House appraised for $450k 2 years ago. I expect the sale price to be $475k - $500k
- 1st position mortgage for $109k
- 2nd position HELOC with a $50k limit, current draw is $8k
- Salary is $147k base + $10-$20k bonus

I'd like to buy a house with a maximum selling price of $750k, probably more like $600k, but somehow need to figure out how to use my current home equity to finance the 20% down payment while still qualifying for a mortgage ... if that is even possible. I've googled and seen that people use bridge loans or a home equity loan to do what I am looking for. I talked to one lender so far but the only option with them was to do a cash-out refi of my current mortgage and HELOC. If you've done something like this, can you tell me what lender you worked with?

I know some of this may seem a stretch but houses in my neighborhood are selling within days above asking price, so I am pretty comfortable that it will sell quickly. Also, my wife has been working sporadically while our kids have been young but now that they are starting school, she'll be adding another $50k-$90k to our income depending on how many hours she works, but we don't have the work history the past two years to support that for mortgage qualification, so I'd prefer to just use my own income to qualify for the loan if possible.
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