Question Details

Diana Scott, Both Buyer and Seller in 46147

Can I get a loan of some type on my home if it is up for sale?

Asked by Diana Scott, 46147 Sat Nov 3, 2007

What kind of loan can I get on my home if it is up for sale? My home is mortgage free and I have another one I want to buy . Yes, I do have to sell my house.

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Yes, you can get a loan on your house that is for sale. The Loan to value percent that you can draw out will be lower because the home is for sale and you are going to have a higher rate. Do not try to hide the fact that it was for sale. The bank will find out anyway.
0 votes Thank Flag Link Sat Nov 3, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
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Pam's solution does not work. Appraisers pull MLS activity for the previous 12 months to determine if it has been listed at any time within the past year. Merely taking it off the market immediately before applying for a loan will do you no good. The bank will still know that it WAS for sale, and underwrite or decline the loan accordingly.
0 votes Thank Flag Link Sat Nov 3, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
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If you home is on the market is would be very difficult to obtain a loan. You best bet is to take it off the market to get a loan. Make sure the loan you are getting does not have a prepayment penalty.
0 votes Thank Flag Link Sat Nov 3, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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The majority of lenders will not lend on a home that is for sale, for obvious reason. And if they did, the fees you would incur in a short period of time qould be quite high.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Nov 3, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
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