Hi Jayme - provided your income is sufficient to qualify with leasing out your current home instead of selling it and depending on credit scores, credit history and assets you may be able to strucuture your new mortgage with minimum out of pocket. There are several things that have to be taken into consideration in this scenario and I would need more information to properly address your concerns. Your current home cannot be used as collateral or a down payment on a new mortgage unless you sell it or pull the equity out by doing a cash-out refinance. There are programs available that will allow for as little as 3% down payment and allow the seller to pay towards closing costs and prepaids. FHA financing will actually allow a seller to pay all closing costs/prepaids plus title policy plus contribute to a non-profit down payment assistance program to allow for the 3% down payment to be a gift at closing. If your current home is FHA then that would not work since you can only have 1 FHA loan at a time (unless the loan to value is 75% or less on the current home). If you wish to speak in more detail and provide me with the necessary information, I can probably get you pointed in the right direction and let you know what your options are so that you can keep your current home as a rental and get into a new home with minimum out of pocket. My contact info is below and I am more than happy to help.
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
Potentiall yes, but your loan officer will want more details. If you own the home outright, then potentially you could take a home equity line of credit and use that for your down payment and closing costs on the new home. It will just depend on your credit, income, debt, if you own the property outright or if you have a loan on it and how much you owe, vs what the house is worth.... more