Can you purchase a homepath home and current home has less than 30% equity?

Asked by Indiana J, Indianapolis, IN Sun Jul 1, 2012

We are relocating due to my job in Indiana. We put an offer on a homepath house with 10% down and got accepted. We got an offer on our current home 2 weeks later, we acepted it even though was a little low to avoid having a second mortgage. The problem is the broker says we can't close untill we close on our current home because we don't have 30% equity on it.

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Maria Cipoll…, Agent, Coral Springs, FL
Sun Sep 23, 2012
Thanks to the Housing crisis, it isn't as easy to get financing for this kind of transaction as it used to be. Now, Freddie Mac and Fannie Mae stipulates that you can buy a new home and leave your old one unsold, if you have minimum 30% equity in it and have the income to qualify or enough rental income to offset the payment, or enough income to qualify for both payments. Your mortgage broker is the one can give better advice because he is looking at your financing history, but you can certainly ask for a second opinion.

Best of Luck,

Maria E. Cipollone

Century 21 Tenace

http://www.Flahomespecialist.com
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