Financing in 47220>Question Details

Wab, Home Owner in 47220

We own a home outright & would like to move. Is there a way to get equity out to finance a new home before the current one sells or is even?

Asked by Wab, 47220 Mon Apr 18, 2011

listed? Details: We must move out before we even market the home due to a child's health issues. However we need the equity for a down payment.

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A bridge loan might work, or if you are building a home with special needs in mind, a construction perm loan would be probably be the best product for your situation. Both of these products are not main stream loans and you may need to shop around to even find a bank in your area who offers this type of product. I am a builder/agent in the Kansas City market and we only have capital federal and first federal saving that offers both these products in our market of about 1000000 people.
0 votes Thank Flag Link Tue Apr 19, 2011
Discuss an equity line with your local lender or a refinance. You should easily be ale to pull out 20-50% of your homes current value. I would not consider Seller financing. Qualified buyers should be able to get a loan on thier own.

Good Luck.
0 votes Thank Flag Link Tue Apr 19, 2011
You might also consider selling your property with seller financing. Yet, if you'd like to keep your current property, and acquire another one, then you could use part of the equity in your current one as cross-collateral for the next purchase.
0 votes Thank Flag Link Tue Apr 19, 2011
Those are good suggestions and definitely the best place to start. Another option - or backup plan - is to locate a rental property to move into for a short term. If the average time on the market for homes comparable to yours is 90 days, consider a 6 month lease. Once you are moved into the leased home, your agent can market and sell your home, and then with the funds from that, you can go shopping and you will be 'cash buyers' for your new purchase, or at least buyers who don't have a home to sell.
0 votes Thank Flag Link Mon Apr 18, 2011
Wab,
Yes, there are several options for you. You should meet with a lender to discuss which one may be the right one for you.
Some examples would be to do a Home Equity Line of Credit on your current home for enough cash to cover 20% or more down on your new home. You can also talk to a lender about doing a Bridge Loan which would potentially encumber both homes until the current home is sold.
You should find out which program is best for you well in advance of listing your current home for sale as some home loans are not available if you are on the market.
0 votes Thank Flag Link Mon Apr 18, 2011
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