Dear Ka,
You might be able to get an "interest only loan" for the house. It is just what it sounds like,. It would cost you a lot less monthly than a conventional loan would for the next six months. Call your lender and see what programs they offer right now that you will qualify for. Good Luck!
Betina Foreman, Realtor
Austin Texas

Lending answer:

It sounds like you are asking about "PITI Abatement" financing in which a home builder sets aside 6 months' worth of your mortgage principal, interest, taxes, and insurance at closing. A few lenders used to offer these programs, but I believe these programs may have been withdrawn. Flagstar Bank http://(www.flagstar.com) was a major player with these loans. If the program is still available, you'd still have to qualify to carry both notes and find a builder who is enrolled with Flagstar.

It may be possible to obtain a bridge loan to help with the purchase of the new property, but again you'd have to qualify for both notes, and there would be no 6 month waiting period.

Another alternative might be an equity line on your old home to pay for the remodeling costs.. but again no waiting period and you have to qualify for both notes.

Not that I've heard of, but the rumors I've heard all say this will get harder not easier. Too many people got financing on a new place and let the old one go into forclosure. Fannie and Freddie's problems today probably won't help either.