Reply to Buying a new house before selling

Forum Index » Money and Finances

Reply to "Buying a new house before selling - money options"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]My husband and I are planning to buy a bigger home. We already own a home and have quite a bit of equity in it (around 160k). We were initially going to sell our home first and then buy, but we would really like to find a house that suits our needs (child has a disability - need a house that will have certain features), and when we do, we need to act. Problem is that we need our equity for the downpayment on the next house. Our current home should sell relatively quickly (it's in a relatively desirable neighborhood. houses don't tend to stay on the market very long).

The way we see it, we have three options, but each have their downsides.

1. Borrow from our TSPs. Husband and I can borrow 50k each. We could borrow, put a no contingent offer down when we find out the house we want, and then try to sell our house immediately, and then repay the loan immediately. We know the whole pretax, post tax dollar issue, but it's an option.

2. Get a home equity loan from a bank. Not terribly desirable since we would have to pay interest on it, and it will count towards our debt to income ratio, but banks won't bat an eye twice.

3. Get a home equity loan from a relative. We have the means to do this. It is very desirable since we wouldn't have to pay interest. The problem is how banks will treat it based on debt to income ratio, or if they will give us a hard time about it.

Anyone have any insight? We want to make this as seamless as possible, completely recognizing that this will be hard! [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics