Your question has clearly been answered, and yes your father can sell his home and purchase another. If your father will need to obtain to cover any of the price on the new property he would of course need to qualify for the new mortgage. Additioanally, depending on his individual circumstances, he will want to consult with an accountant regarding any realized profits from the sale of the home and how that may impact him on a tax obligation. Good luck with your dad's home sale and should you have any questions, please feel free to contact me.
RE/MAX Advance Realty
To answer that question, you got to find out how much the house will sell for, then subtract how much is owed on the house (which will be a little higher than the mortgage statement shows - because the interest for the previous month will be added), subtract a couple of thousands for seller closing costs,
then add home insurance premium refund (if your dad paid for the year already), subtract 6% broker commissions (off the purchase price amount) - if what is left positive, and it's enough to put at least 3.5% on FHA program downpayment - then the answer is yes, your father can buy a new home.
If the result is negative, you got to meet with a person specializing in distressed properties - which means foreclosures and short sales. Your father will still most likely be able to sell the house,
but he may not be able to buy for another 2 years then...
For more info please feel free to call me,
Irina Karan, CDPE (Certified Distressed Property Expert)
Beachfront Realty, Inc.
There are many different options your father may have. It would be my pleasure to speak to you and your father and answer any questions you may have.
Mortgage Loan Originator
9700 S. Dixie Highway, Ste 550
Miami, Florida 33156
General Fax: 786-310-7533
When a seller sells his home, the proceeds of the sale go to him minus closing costs, any liens, special assessments, mortgage payoff, etc. If he only has one year left, the payoff will obviously be very small so the bulk of the money shoudld go to him. He will certainly have enough money to buu another house.
If you need help or a better explanation, I'll be happy to put you in touch with one of our affiliates, Coldwell Banker Home Loans, who will be happy to explain. They can also provide financing for his new home. CB Home Loans is considered a major lender in the industry.