Funding options for move up house?

I see it like this you have two options here. 1. you obtain a heloc (usually no cost involved) which should yield you about 245,000 based on your value and 70%LTV. you will need to obviously supplement the 245,000 with another 135,000 of your own cash to make the full price. This structure will allow you to have the funds ready quickly for whenever the lender decides to close on the short sale.You also mention that you would like to take out a new mortgage on the new home to replenish some of your cash. Keep in mind you can certainly do this but you will need to own the new home for at least 6 months to be able to do a cash out refinance. as long as you are ok with waiting this 6 months I think this is your best option.2. Obtain a purchase money mortgage on the new home, this option will prevent you from needing to replenish your funds as with the new mortgage and the sale of your old home you should have the cash reserves aready in the bank that you are seeking. Should your old home not sell as fast as you are hoping this option could allow you to hold on to more of your own cash reserves which may keep you in a stronger financial position. The only negative part of this structure is you lose the ease of being a "cash" buyer.

My suggestion is to take a forward mortgage out on the exisitng property. You can cash out to 80% on conventional or 85% on FHA. If you are a veteran you can do 90% with a VA loan. Then Take out a small first mortgage on the new home and then once the exisiting house sells you can do a cash out after having the property for 6 months. A HELOC is too risky in this volatile market. The other problem is that HELOCS put strain on your credit score as they are treated like a large revolving tradeline. If you borrow the max line amount then it is just like maxing out a credit card. All these suggestions would need to be implemented with a full file including income, assets and credit check among other things.

HI, An all cash offer is best for lender to accept and speed up the process. But at the same time, you will have to go through all the processes of refinancing your current home, pull out the money and purchase your next home. You can start the process, get a pre-approval from a lender and use the proceeds from your sale to fund the new purchase. If you can get a new loan on the purchase, then you would have to refinance the home and pay down at closing to bring down the current balance. I think that if you put in an offer contingent upon the sale of your current home, that it would be the easiest way to have the lowest loan amount possible on the purchase loan.

Hello, I think this would be an excellent ideal to get HELOC you would be placing over twenty percent down on your new home and No mortgage insurance. And after you sell your home, that would take care of your note with the previous home. Let me know if there's anything I could do for you to make this possible.