when you sell a house, do you have to use all of the equity in your present house to put down on the new purchased house?

Asked by Imasoonerlover, Oklahoma City, OK Fri Jun 22, 2012

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Judi Rider, Agent, Oklahoma City, OK
Fri Jun 22, 2012
No, you do not have to reinvest your net proceeds from the sale of your present house into your next house purchase unless it is part of a 1031 Starker Exchange, which is usually done by investors exchanging properties. You can purchase your next home with as little down as a lender requires for you to qualify for the new mortgage. I'd be happy to assist you in your sale and new purchase if you do not already have a Realtor lined up. You may reach me at 405-470-6613 - Judi Rider, Broker (Over 30 years experience)
1 vote
I agree with Judi. A 1031 Exchange would be the only exception.
Flag Fri Jun 22, 2012
Wells Bridge…, Agent, OKC, OK
Fri Jun 22, 2012
No, FHA only requires 3.5% for the down payment. A Conventional loan can require anywhere from 5-20% down. I work with some great lenders if you're interested in talking to them.
Feel free to contact me if you'd like more information.

Best of luck!

Bridgett Wells
Keller Williams Realty
Web Reference:  http://www.bridgettwells.com
1 vote
Julie Barnett, Agent, Lebanon, IN
Wed Aug 29, 2012
That's a loaded question! It all depends on how much the new house is, how much money you already have to put down on the new house before you receive your equity from selling the old house, and whether the sales price on the new house is in line with its true value. It could also depend on the type of mortgage loan you are getting, the interest rate, the length of the loan and what your credit score is.

My suggestion: If you DON'T want to use all the equity from the sale of your old home, I would be particular about the new home I chose and how much it costs.
0 votes
Julie Gray-T…, Agent, Mustang, OK
Fri Jun 22, 2012
Simply answered No. A lot of good advice here, however as some have answered you need to speak with your lender. I too can refer you to several lending companies and would be happy to help you with this further.

Feel free to contact me anytime at 405•640•6621.
Boomer Sooner!
Julie Gray Thrash
OK City Properties, Inc.
0 votes
, ,
Fri Jun 22, 2012
Nope, it’s your money, you could take it to the casino and put it all on red if you want.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
0 votes
Rose Wilkins…, , Edmond, OK
Fri Jun 22, 2012

You need to ask your mortgage lender if the NEW loan you are qualified for is:

C) Conventional

FHA and VA loans usually require 3% down or less. You may also have to pay closing costs, depending on what you negotiate with the seller of the new house you are trying to buy.

Conventional loans range from 5% down all the way up to 20% down, plus closing costs in some cases.

These are usually the minimum standard requirements on these types of loans. But you can choose to put down more, if you wish. But it is not required.
0 votes
I think Bridgett is right... it is 3.5% down, not 3% for FHA or VA.
Flag Fri Jun 22, 2012
, ,
Fri Jun 22, 2012
Hello Sooner Lover,

The amount of equity you will be using for your new house depends on the type of loan and down payment requirement you will have on the new house.
You should first see how much is needed for the new house, a mortgage lender can help you determine this amount. You then will need to estimate the amount of equity you will receive on the sale of your house.
A Realtor can help also help you with both those number. Your Listing Realtor will provide you with a Net to Seller Estimate, this is the amount you receive from selling your house. The Realtor helping you with the purchase can help you with the Buyers Worksheet, this will give you an estimate of how much you need for the new purchase.
If you need any help don't hesitate to call us.


0 votes
Julie Riggs, Landlord, Edmond, OK
Fri Jun 22, 2012
After closing costs are paid, the remainder of your equity is yours to send as you wish. the family home is your greatest investment. Rolling that equity you have earned into the purchase of a new home maybe the wisest financial decision. If you would like a referral to a mortgage banker or help finding that new home and selling your current home, I would be happy to help you! Best wishes!
Web Reference:  http://www.okcjulie.com
0 votes
, ,
Fri Jun 22, 2012
No, unless it is required by your loan terms on your new mortgage. You can use it to pay off debts, increase your savings, or pay any other expenses.

I hope this helps,

0 votes
Ryan Hukill, Agent, Oklahoma City, OK
Fri Jun 22, 2012
No, you don't, as long as your equity is more than the minimum amount your new lender will require for qualification.
0 votes
Josh Barnett, Agent, Carney, OK
Fri Jun 22, 2012

No you do not. All you have to put down is what your loan requires.

Hope this helps,

Josh Barnett, Realtor
Metro First Realty
Web Reference:  http://www.1ListingFee.com
0 votes
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