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Anyone with Financial/loan knowlege?
#1
bigcountry23
bigcountry23
So here is what I want to do. I just found out that there is a beautiful 300k+ House for sale in an area of town that I want to live in for 215k. There is just one problem, I still have the condo that I'm living in and don't have the nice down payment I think it would take to secure this property.
Here is where I need help to find out if something would be possible. What I would like to do is get a new loan on my current place for 125k (similar condo's in the area are going for 130) at a lower interest rate than I'm currently paying, pay off my current loan, use the 20K left over to put a down payment on the property I'm looking at, and then when I sell the Condo pay off the new loan.
What I don't want to do is just get an equity loan (as that would result in paying on two loans, the mortgage and the equity loan, which would blow my budget). A refi would be ok, except that would just lower my monthly payments and I still wouldn't have the cash I need for the down.
It's a short sale (looks to be a foreclosure since it has been listed at 365k for the last 8 months) so a conditional offer on the house would not fly.
Anyone have any ideas?
Here is where I need help to find out if something would be possible. What I would like to do is get a new loan on my current place for 125k (similar condo's in the area are going for 130) at a lower interest rate than I'm currently paying, pay off my current loan, use the 20K left over to put a down payment on the property I'm looking at, and then when I sell the Condo pay off the new loan.
What I don't want to do is just get an equity loan (as that would result in paying on two loans, the mortgage and the equity loan, which would blow my budget). A refi would be ok, except that would just lower my monthly payments and I still wouldn't have the cash I need for the down.
It's a short sale (looks to be a foreclosure since it has been listed at 365k for the last 8 months) so a conditional offer on the house would not fly.
Anyone have any ideas?
#2
Covar
Covar
Talk to someone at a Bank. They should be able to help you as it means more business for them.
#3
Chibibar
Chibibar
I can only give refinance advice only because I'm doing a refinance on my home which I bought with 80/20 loan (basically 2 loan but the 20% is higher interest rate of 9% and have to paid off in 5 years) I bought my house at 108 and currently worth 135 (even after the market fall. It was a foreclosure home) now my mom is the broker so she is helping me to do the loan (she is good with real estate working for about 20+ years) It is easier to qualify if you are refinancing 80% of the value of the home which in my case is 108k.
Due to recession, it is harder (not impossible) to get 100% refinance, but I wouldn't recommend it (more likely 2 mortgage payment) so you can get 80% value of your condo (hopefully you have equity already in it so easily can qualify) but if you want to pull all your equity out and do a new loan..... that is a different story. I think the reason my mom recommend this way cause it would be "almost" like I put down 20% and get a loan for 80% of my home (full value) and still come out ahead and pay off my old loans (and still have money left over) cause I have been doing house payment for 3 years now and have a little equity build up.
I hope that makes sense. It took me a while to understand that luckily I have a family member who is a whiz at this stuff.
I suggest you shop around for a loan officer (banks) they can give you a better picture and different scenarios. I am only giving you mine, cause that is what I'm doing in about a month or two.
Due to recession, it is harder (not impossible) to get 100% refinance, but I wouldn't recommend it (more likely 2 mortgage payment) so you can get 80% value of your condo (hopefully you have equity already in it so easily can qualify) but if you want to pull all your equity out and do a new loan..... that is a different story. I think the reason my mom recommend this way cause it would be "almost" like I put down 20% and get a loan for 80% of my home (full value) and still come out ahead and pay off my old loans (and still have money left over) cause I have been doing house payment for 3 years now and have a little equity build up.
I hope that makes sense. It took me a while to understand that luckily I have a family member who is a whiz at this stuff.
I suggest you shop around for a loan officer (banks) they can give you a better picture and different scenarios. I am only giving you mine, cause that is what I'm doing in about a month or two.
#4
Jake
Jake
You will have to have the income and credit to support both mortgages at once. A bank will not accept "It's cool, the condo will sell soon and then I'll pay off this loan".
#5
bigcountry23
Was just seeing if anyone had something creative. I guess I'll go talk to some banks.
bigcountry23
I have the income and credit (I could afford to pay a mortgage on my current place and my new place at the same time) I just don't have anything "liquid" right now to put as a down payment on the new place.Jake said:You will have to have the income and credit to support both mortgages at once. A bank will not accept "It's cool, the condo will sell soon and then I'll pay off this loan".
Was just seeing if anyone had something creative. I guess I'll go talk to some banks.
#6
Chibibar
Chibibar
Yea.. Banks are the best place. They can get pretty creative (well maybe more like options) since the recent economic turn, most banks are playing it safe so you probably not going to be put on those "high risk" plans.bigcountry23 said:I have the income and credit (I could afford to pay a mortgage on my current place and my new place at the same time) I just don't have anything "liquid" right now to put as a down payment on the new place.Jake said:You will have to have the income and credit to support both mortgages at once. A bank will not accept "It's cool, the condo will sell soon and then I'll pay off this loan".
Was just seeing if anyone had something creative. I guess I'll go talk to some banks.