DILEMMA: You’ve found the perfect new home, but don’t yet have your current property on the market — and you need to sell in order to buy the upleg. Rather than losing out on the opportunity to act fast, there are three options that may enable you to qualify for a new mortgage loan before getting your property on the market or selling:
- Convert Your Primary Residence to a Rental Property – Some lenders will use 75% of the rental income to offset the mortgage payment, so you don’t have to sell your current residence to qualify for the new purchase loan. No need for lengthy lease agreement previously in place.
- Use the Equity in Your Residence for the Down Payment – If you have plenty of equity in your current residence, lenders will give you a loan secured by your current residence for the down payment on your new home.
- Cross collateralize – If you own several properties, there are lenders will use the equity in those properties for the down payment on your new home.
Besides being able to act on the right property fast, these scenarios help make your offer non-contingent on the sale of your current residence — an enormous benefit in strategically presenting the strongest, cleanest, most competitive offer possible. Think outside the box, and let me help you get the house!
FOR EXCEPTIONAL REAL ESTATE SERVICE, CONTACT:
Elaine Mallon, Broker Associate
Vista | Sotheby’s International Realty
REAL ESTATE AGENT & LOCAL EXPERT, serving Coastal Los Angeles County, including: Hollywood Riviera, Redondo Beach, Manhattan Beach, Hermosa Beach, Palos Verdes Peninsula, Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates and the San Pedro Peninsula.