What are my mortgage options to buy a 2nd home before selling the current home?

[StillLearning]

I've been reading a lot here, but I am not very familiar with FHA vs Fannie Mae, etc. loans.  

I have an existing mortgage (just a regular 15 year mortgage, not FHA or anything like that) on my first home but I want to buy a second home and move into it before selling the first.  Assuming credit scores and DTI are ok, what are some options in this situation?  I would like to keep my down payment to 3.5 or 5% because I won't have the equity from the first home until it sells.  Any ideas?

[JVille]

Is your current home listed? If it has NOT been on the market in the last 2 yrs and depending on how much equity you have in that home why don’t you get a HELOC (Home Equity Line of Credit) . Use those proceeds for the new house. There are rules and conditions so speak with someone knowledgeable.

I just closed on a HELOC from Key Bank that is interest only on the amount in use. We are not selling our home but are buying a vacation/ 2nd home. The funds are NOT being used to purchase the new home but will be used for Landscaping, Furnishings and incidentals to that new life.

[StillLearning]

I will check into that.  Thanks!

[NC_Mtg_Loaner]

Check with your preferred lender, but you can also originate a "recast" mortgage that allows you to recast your loan after your original closing that allows you to deploy your additional cash that you've received from the sale of home 1 that's listed to sell.

FNMA and FHLMC both allow this for a nominal fee and under certain conditions.