Anonymous wrote:We are a middle income family and even we can carry two loans (uncomfortably). Most banks qualify people for wayyy more mortgage than they should be holding.

nice opinion

We are a middle income family and even we can carry two loans (uncomfortably). Most banks qualify people for wayyy more mortgage than they should be holding.

Anonymous wrote:

Anonymous wrote:One thing is the down payment -- heloc would be a solution. But another is whether the bank will allow having two mortgages. That would depend on your income, not on heloc/bridge loan. Right?

+1. The HELOC put my debt ratio too high. I was planning on buying, then selling and just couldn't make the numbers work. A bridge loan would have been great, but couldn't find a bank who would do it.

OP here. This is what I don't understand. Assuming that people like 12:32 are selling their current home in a hot area, they would probably be able to do it very quickly, with minor risk to the bank. Why are banks so reluctant?


I think that a bridge loan, despite the high interest, would be a better alternative than the "sell, then short term rent, then buy" strategy that many of us need to do, which entails moving twice, which is a real pain.

Could you do a 401(k) loan through work? Both DH and I did this went we bought before we sold - we each took the maximum loans allowed (maybe $50K each?) and then turned around and paid them of immediately after we sold. Maybe they were outstanding for a month from start to finish.

Anonymous wrote:One thing is the down payment -- heloc would be a solution. But another is whether the bank will allow having two mortgages. That would depend on your income, not on heloc/bridge loan. Right?

+1. The HELOC put my debt ratio too high. I was planning on buying, then selling and just couldn't make the numbers work. A bridge loan would have been great, but couldn't find a bank who would do it.

One thing is the down payment -- heloc would be a solution. But another is whether the bank will allow having two mortgages. That would depend on your income, not on heloc/bridge loan. Right?

You can get a bridge loan now. We plan to do just that and have already run traps with our broker.

couldn't you take a heloc as a downpayment and then pay it off after you sell your place?

I thought they did offer bridge loans?

OP I was in the same position as you. I desperately wanted to move on, but I had so much equity tied into my current home that I couldn't put down 20%. I was pretty much shut out of all options and had to back away from the house.

Will you accept a 25% bridge loan?

If someone is selling in a hot market and buying in a hot market, I don't see why banks would be so reluctant to issue bridge loans again...