Reply to Need to downsize but can't get mortgage.....should I look into a hard money loan?

Forum Index » Real Estate

Reply to "Need to downsize but can't get mortgage.....should I look into a hard money loan?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]OP, here is a summary of your options that I can think of:
1) Hard money loan.  It's an option but not a good one since there are origination fees and the interest rate is higher than what a bank would charge.
2) Bridge loan from a bank.  This is better than a hard money loan.  Less fees and lower interest rate. This is different than a mortgage which I think you were looking at. 
3) Sell your house first and rent back.  But since you do not know when you will find a house to buy, this is a risky strategy.  Maybe do a 6 month rent back.  
4) Put in offers with a "home sale contingency" which isn't great because a seller does not like to see contingencies.  
5)  Try to time the sale of your house and the purchase of your house on the same day.  This is very difficult to do but is possible
6)   Sell your place with a 60-90 day rent back and if you can't find a place to buy, do a long term AirBnb temporarily for a few months until you can find a house you like.  
7) Apply for a HELOC or Home Equity Loan and then use that money to buy a house.  You should be able to find a lender to get you 80% of the value of your house which it sounds like your budget is for your new house.

Hope this summary of options helps you![/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