My Situation, Want to buy bigger home

[Anonymous]

Greetings all! I am looking to sell my townhome in order to purchase a larger place. I currently owe $192k. Similar units in my development are going for $165k-$185k. I have not received an appraisal, but we have put significant money into upgrades. My buddy works for Wells Fargo and says my home is worth about $178k based on his valuation report.

My problem is trying to determine the best way to cover my negative equity. Worst case scenario I would need to come up with $20k-30k to make up the difference. My FICOs are 720+ and I have $0 CC debt. Total DTI is about 40% (student loans, car payments, and a $5k personal loan). Unfortunately, I don't have any extra cash to work with right now. I understand it is not possible to roll neg equity into a new house like one would for an automobile. It appears my only options are:

- 125% Mortgage
- LOC
- Personal Loan
- Short Share (doubt I would do this as my credit would be destroyed)

Opinions?

Thanks!

[Anonymous]

Have you talked to your lender? If they are upside down on the present house perhaps they can do a short sale, make the new loan and roll the shortage into the new loan, all without hurting your credit. It makes sense for them. I would contact the bank president's office and ask.

[Anonymous]

Why not just stay until you pay some things down.  You should call a Realtor to do a CMA.

[Anonymous]

You're honestly best off staying put until the market picks up.

Unless, you can rent out your current place for more than the mortgage payment, then you could concievably buy a new home and keep the other.  Risky, but doable.

A 125% mortgage is a refi-only product, you can't do it when you purchase a home to roll negative equity.