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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We're actually kind of in a similar situation and wanted to post asking about it.

When you say that banks won't bat an eye for option 2, the home equity loan, does that include when you're shopping for mortgages for the new home?

One of my concerns is taking a loan out on the old house shortly before shopping for one for the new home.  ie the hit on your credit, debt to loan ratio, etc.
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The HELOC is on the new home, not the old one.[/quote]

I am not sure how you get a HELOC on a house you do not own yet.  It sounds like OP needs the equity for the entire downpayment, not just 10%.  A different poster made a HELOC part of the financing package (the 80-10-10) but I am not so sure how common that is, in any event that poster had 10% liquid at the time of purchase.[/quote]

Previous poster from 14:51 again.  Oooh okay.  I did that before but for some reason thought that the rules were more strict now and this option wasn't available anymore.

Good to know.  I was originally thinking about looking into loans that would have a recast option and recast the loan after selling the other house.

But this option might work better.  Thanks for the tip!

To the poster from 22:53, process wise everything is like a mortgage.  Where when we did it before, our mortgage lender was the one that found the HELOC for us and we signed all the paperwork for both loans at closing.  At the time it was one of the ways to get around PMI if you were putting less then 20% down.  I thought after the housing meltdown they weren't allowing this anymore but maybe they are.  Will have to look into it.  I think you might be right I'm not sure if they'd let you end up taking a HELOC that results in the home being 100% financed.  But never really looked into that before.[/quote]

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