Hi Kevin,

The product you're looking for is called a Bridge Loan. You'll most likely need a mortgage broker, or non-traditional lender to help you with the financing. Most traditional banks don't offer the product because of the increased risk. Bridge Loans can be quite pricey depending on how long it takes you to sell the original property, however, they can be a great tool if you need the new property immediately. Feel free to call me for more information 720.280.0441.

Take care,

Ben Edgson
Mortgage Broker
720.280.0441
ben@bythebrookemortgage.com

If the home is on the market the bank will not lend on the equity in the home (from my past experiances) the best answer for this requires very detailed and personal information that you probably want to discuss in private with a lender.
I can help you find both a Realtor and lender (we have our office in Littleton) just let me know.
Good Luck!!

Kevin,

We almost have enough data to know the answer, but not quite. You need to state your income, any other mortgage related monthly expenses, and any other revolving credit expenses. While you have a great equity situation on the existing home, any lender for the new home is going to factor in the carrying cost of the current home into their monthly debt analysis for you.

It does seem that your real question may be "how can I use the equity in my current home as a downpayment on another home". The answer is still the same though. A lender is going to look at your ability to make your PITI on both properties, based on your income, any other mortgage related debt, and your other revolving credit payments.

Don't worry about how to get the money out of your current home until you figure out whether or not you can qualify for the total debt you would incur by doing so. There are many avenues to get the money out, and a good lender will help you do just that, as long as your total ratios work out.

Good luck,

Jeffrey