Be careful of being tagged a "Bail and Buy" by the lenders. Our lenders who qualify our REO purchasers are very savvy to this ploy! You'll need to state you are NOT buying the move up property as a personal residence but as a rental. Check with your local lender to see how this works. We have many buyers in the early days of the REO surge who would state they are keeping their existing home as a rental, get a false lease for way too much rent to justify their high debt service on the old home, buy the new house and WALK away from the old home or buying the property and bailing on the old one!
However, I'd be very cautious about the "conseratively" in your homes value. We offer all of our clients "Market Snapshot" which shows all the REAL sales comparables vs. Zillow's computer generated valueations! You can also see what your competitoin is in your particular neighborhood. We feel our clients enjoy the ability to research their valuations before calling us in for a more formal, "Market Analysis". My radio show blog has the "widget" for "Market Snapshot" or you can go to http://www.MikeKelly.com
Also I have a free report I just posted on my blog as to WHY you should BUY during the Winter!

Your best bet is to get qualified. If you can afford both house payments including taxes and insurance then you could turn your current primary into a rental. The only way you can count rental income is if you have a signed lease and security deposit which can be tough to accomplish if you are still living there. Feel free to call and I can walk you through the numbers to figure it out.

Good Morning,

Keeping the home may be your first option since most of the homes currently on the market are Bank Owned and they do not accept contingent sales (selling your home to buy another). This would work as long as your lender accepts a rental agreement on your current home as additional income.
If we are selling your home to purchase something else, you would probably have more money to put down on another home which would give you more buying power and a stronger offer to present.

If you need further help, I would be honored to work for you!
Good luck out there!

Ken

Kenneth Schrier Real Estate Group
CPS Property Advocates
707-529-4819 http://www.kenschrier.com http://www.kenschrier@aol.com

As far as a blanket loan goes, you would need a mortgage professional to "run the numbers" and see if your income could sustain both mortgages. I do believe there are bridge loans available, but again, that's a great question for a mortgage pro. Let me know if you'd like a good referral for one!

Mike

Assuming that your figures are correct on what your home should sell for and your payoff amount, you should have a 15-20% to put down on the new home after paying all fees and commissions. As long as you qualify for the new loan, and your current home sells, you should be just fine.
Let me know if you need any further assistance, or if you would like a no-charge in-depth analysis of what your current home is worth. (providing you do not have an ongoing relationship with another Real Estate professional)

Best of Luck!

Mike