Moving to a new house when we already own a house

[Anonymous]

I know this question has been asked a million times, but I wanted to put my situation out there in case there was any specific advise.

We own a 600k townhouse near the Ballston metro. We have about 250k in the house and a 350k loan. Th usually goes pretty fast in this area.

I want to move up to an 800k house that just came on the market. We have about 70k in cash.

[Anonymous]

What's the question? We did something similar when we were already happily living in one house, but found one accidentally that we just couldn't walk away from. We bought the second one and then put the first one on the market and just paid both mortgages until it sold. We would have kept it as a rental, but the numbers didn't work out.

[Anonymous]

Put the Ballston house on the market. Hard to believe it's inly $600k, but ok. It will sell fast. Use the $200k in equity you have for the $800k house. Close on townhouse first and do a rent back from new owners. Close on $800k house and move in a day later.

[Anonymous]

Anonymous wrote:Put the Ballston house on the market. Hard to believe it's inly $600k, but ok. It will sell fast. Use the $200k in equity you have for the $800k house. Close on townhouse first and do a rent back from new owners. Close on $800k house and move in a day later.

PP here...sorry, I get it now. You don't have enough cash on hand for the DP on the new house.

[Anonymous]

We needed the equity from our first home for a down payment on our new house. We lived in a popular area and were able to sell it quickly, ask for a long closing and a long rent back. We were under contract for 2 months and rented back for about 6 weeks after the sale. It took us two months to find our new home after we went under contract on the old one. We'd been looking for a while, though, and knew what we wanted. It worked out, but since we were looking in another hot market, we would have been willing to rent for a while. Fortunately, it wasn't necessary but it is an option in this type of situation. Good luck!

Also maybe a bridge loan, though I can't speak to that at all because we never considered it.

[Anonymous]

a lender that will do a bridge loan to you for the new house down payment would be easier so you don't miss out on house of dreams....and then you pay back the bridge loan with the equity when you sell the original house a short while later.

[Anonymous]

Anonymous wrote:a lender that will do a bridge loan to you for the new house down payment would be easier so you don't miss out on house of dreams....and then you pay back the bridge loan with the equity when you sell the original house a short while later.

Bridge loans are not common anymore, I also don't think 800k would consitute a house of dreams that range there is plently of stuff. Just put in an offer with a sales contingecy, the arlington market it softening and sellers are much more flexible.

[Anonymous]

Hi,
Thanks for the responses. I'm worried that an offer with contingencies would be laughed at but maybe not?

I don't have enough for the dp and get conflicting information on bridge loans. We have three children, so the idea of moving into a rental and then in another house is overwhelming. I'd have to be a lot more unhappy living in the th before I did that.

I'm also concerned that the bank wouldn't approve us for financing for the second note while we are holding the first note. Hhi of 150k. Current note is 350 with mortgage payments of 2200/month.

DH is optimistic that the will sell for more but I'm not so sure as it's smaller (1700 sq ft) and no garage.

Thank you!

[Anonymous]

I don't mean to be a Debbie downer but can you qualify for a $480k loan on a HHI of $150k? And would you want to? The $480k loan is assuming you add all of your cash to your $250k equity for a down payment.

[Anonymous]

Anonymous wrote:Hi,
Thanks for the responses. I'm worried that an offer with contingencies would be laughed at but maybe not?

I don't have enough for the dp and get conflicting information on bridge loans. We have three children, so the idea of moving into a rental and then in another house is overwhelming. I'd have to be a lot more unhappy living in the th before I did that.

I'm also concerned that the bank wouldn't approve us for financing for the second note while we are holding the first note. Hhi of 150k. Current note is 350 with mortgage payments of 2200/month.

DH is optimistic that the will sell for more but I'm not so sure as it's smaller (1700 sq ft) and no garage.

Thank you!

Unless you are in South Arlington or are in a two bedroom, 2 bath, I'd think that the townhouse must be worth closer to at least $700k.

[Anonymous]

Anonymous wrote:I don't mean to be a Debbie downer but can you qualify for a $480k loan on a HHI of $150k? And would you want to? The $480k loan is assuming you add all of your cash to your $250k equity for a down payment.

So our mortgage payments would be about 3k a month but we take home close to 6k a month after benefits, tax and retirement contributions. We have no car payments or other debt. We also have no daycare costs (I sahm). So it gives us 3k a month to live on which I feel like we can do. We have excellent credit. So we won't be buying bmws, but we will be ok.

That said I don't know if we would qualify. When we bought 4 years ago, we qualified for 750k and had a HHI of 125k. So I feell like we might?

Amything our th sells for over 600 would reduce our note on the future property...so maybe the note would be smaller.

[Anonymous]

I'm kinda with Debbie Downer on this one. With these numbers your ratio of take home to PITI is double what I would be comfortable with. Maybe you are privy to some information that changes the equation down the line, but I'd be careful about the whole house poor thing. It's no fun sitting in your mansion eating ramen noodles sitting on the papasan chair from your dorm room in undergrad. Also, you'd need to build up a large emergency savings account really quickly since you are a bit extended on the house with only one income and a family of 5.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't mean to be a Debbie downer but can you qualify for a $480k loan on a HHI of $150k? And would you want to? The $480k loan is assuming you add all of your cash to your $250k equity for a down payment.

So our mortgage payments would be about 3k a month but we take home close to 6k a month after benefits, tax and retirement contributions. We have no car payments or other debt. We also have no daycare costs (I sahm). So it gives us 3k a month to live on which I feel like we can do. We have excellent credit. So we won't be buying bmws, but we will be ok.

That said I don't know if we would qualify. When we bought 4 years ago, we qualified for 750k and had a HHI of 125k. So I feell like we might?

Amything our th sells for over 600 would reduce our note on the future property...so maybe the note would be smaller.

You seem pretty insistent on doing what you want to do and not taking any of the advice you've received. Why did you post?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't mean to be a Debbie downer but can you qualify for a $480k loan on a HHI of $150k? And would you want to? The $480k loan is assuming you add all of your cash to your $250k equity for a down payment.

So our mortgage payments would be about 3k a month but we take home close to 6k a month after benefits, tax and retirement contributions. We have no car payments or other debt. We also have no daycare costs (I sahm). So it gives us 3k a month to live on which I feel like we can do. We have excellent credit. So we won't be buying bmws, but we will be ok.

That said I don't know if we would qualify. When we bought 4 years ago, we qualified for 750k and had a HHI of 125k. So I feell like we might?

Amything our th sells for over 600 would reduce our note on the future property...so maybe the note would be smaller.

They make you stick to 1/3 of your income. I'm not sure you'd qualify.

[Anonymous]

Anonymous wrote:

Anonymous wrote:a lender that will do a bridge loan to you for the new house down payment would be easier so you don't miss out on house of dreams....and then you pay back the bridge loan with the equity when you sell the original house a short while later.

Bridge loans are not common anymore, I also don't think 800k would consitute a house of dreams that range there is plently of stuff. Just put in an offer with a sales contingecy, the arlington market it softening and sellers are much more flexible.

Yes. They are. Quite common in community banks.