buying and selling at same time

[blackstang932005]

I have a mortgage with my name on it only(wife is not). I owe $47.0000 house is worth roughly 100,000-120,000. Im looking at buying a house that is selling for $228,000. I need to use my equity for down payment on the new house. What are my best options? Banker mentioned a bridge loan. He said they charge $1000 fee for this. i dont have enough in 401k currently. Any other options?

[ShanetheMortgageMan]

Not a ton of options, the most popular and cheapest will either be a bridge loan or a home equity loan/line of credit.  Bridge loans are the more expensive of those options.

You can also make your offer contingent upon the sale of your current home, then you complete both transactions simultaneously and the funds are wired from the title company handling the sale of your home to the title company handling the purchase of your new home.

[markbeiser]

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@ShanetheMortgageMan wrote:

You can also make your offer contingent upon the sale of your current home, then you complete both transactions simultaneously and the funds are wired from the title company handling the sale of your home to the title company handling the purchase of your new home.

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That would have saved me a few thousand dollars in 2007.
In the 4 days between the closing on my new house and the closing on my old house, an F0 tornado damaged the roofs on both houses, even though they are about 3 miles apart, so I was stuck with paying the insurance deductable for new roofs on both houses!🤣

[VAMortgageGuy]

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@blackstang932005 wrote:

I have a mortgage with my name on it only(wife is not). I owe $47.0000 house is worth roughly 100,000-120,000. Im looking at buying a house that is selling for $228,000. I need to use my equity for down payment on the new house. What are my best options? Banker mentioned a bridge loan. He said they charge $1000 fee for this. i dont have enough in 401k currently. Any other options?

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There are a couple of options.
1) You do a back to back closing where you sell your current home and close on the new one right after. As a lender, we know the source of your down payment will be from the sale so you don't have to worry about being able to "show" you have money for the down payment. The down side with this option is you may have a harder time getting your offer accepted on a new house because it will be contingent on selling your current home. 
2) As mentioned, a bridge loan could be a good option. That eliminates the contingency issue & $1,000 is not bad in terms of fees for a bridge loan. The down side is the lender may want you to qualify for the new home whith your current mortgage payment included.
3) Loan type. You can buy your new home with as little as 5% down on a conventional loan or 3.5% on an FHA loan. 
How much do you plan on putting down?

[NC_Mtg_Loaner]

My bank has a buy now sell later program that works great.   It gives you an equity stake to use for your down payment on your new loan and allows you (and your agent) to maximize the return on the sale of your current home when it sells.

[blackstang932005]

20%

[ShanetheMortgageMan]

Do you have $11,400 for a down payment + closing costs?  If so, then you can just buy it with 5% down and after your home sells you can pay down the balance to 80% or however much you wanted to.  You'll have to pay PMI for at least a couple years but if your credit scores are excellent it should be pretty minimal, and if later on rates are low enough to make sense you might be able to refinance and remove PMI sooner.