Is there any way to get a loan without having sold our house?

Asked by Colleen, Sellersburg, IN Thu Dec 11, 2008

We found a house we liked, made an offer which was accepted. We are approved for a loan and have cash for a down payment. We have not sold the house we are in now, though we plan to. But now our lender says we cannot close on the loan because the new house is less that 100 miles away from the one we want to buy- something about two primary residences. Is this common? We can afford 2 payments (at least for a while). And is there any way around this?

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Kevin, , Illinois
Sun Dec 14, 2008
My recommendation would be to consult an independent bank and request a bridge loan. The bank would still require that you qualify under standard underwriting guidelines. Another option is to get a home equity line on your existing home, as this will lower your monthly payments and intern your debt to income.
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Luke Allison, , Asheville, NC
Thu Dec 11, 2008

You have to consider how much the combined debt to income ratio is. Taking into account your new mortgage, current mortgage and other liabilities, most underwriters will not want you to exceed 55%, but the lender could require as low as 45%.

One of the easiest ways around it is to bring in a non-occupant co borrower to better help you qualify.

However, if your lender will not move forward with the deal because of other circumstances, then feel free to call me and I will help you qualify.

Luke Allison
Flagstar Bank
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Martin Walli…, , 46703
Thu Dec 11, 2008
Who knows what the lenders are willing to do these days... they change the rules just about every day now. Used to be you could get a bridge loan. Try working with another lender or a mortgage broker who can shop your loan around to more than one lender. Also consider what you can do to get YOUR house sold faster. Or consider renting it until it sells or doing a lease option deal. There are several creative ways that you should be able to work this out.
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Jim Cavoto, Agent, Denver, CO
Thu Dec 11, 2008
If you truly can afford it Yes- but you will have to hit the debt to income qualications for the new loan- you may think you can afford both, the the underwriter has to agree- you need to find out what your ratios are with the loan-
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