How To Finance A New Home

I'm buying a new home @700k. Existing house is paid off with a market value of $400k. New house will close by October, however, don't think I can sell the old by then.

The plan is to put down 20% cash, close on the new.Once the existing is sold in a few months, the proceeds will go to pay off the mortgage. However, since it's not enough the pay off, I may still be stuck with a huge pmt.

What will be a better way to do the financing?

1) Primary + 2nd mortgage: but most lenders stop offering the 2nd mortgage already
2) Interest only loan
3) Take out a line of credit on the existing then pay it off once house is sold.

Can some one give me some insight on this? Thanks.

Do the reasonable thing and don't buy the second home until you are closer to selling your first. What you are comtemplating is a recipe for disaster that you may regret for a long time.

2007-08-10 14:13:50 by Tiana

Watch as a real-estate professional explains how to finance a new home in this free online video for novice homebuyers. Expert: John Jackson Bio ...

I want to build my new home on my current property.

You will need to refinance the mortgage to re-secure the loan against the land and other assets you already own which will complicate deducting the interest from your taxes in the following tax year. Then you will need to secure a construction loan to begin building anew. This is on the rare side, but not impossible and I highly suggest you shop around for the right mortgage broker experienced in such a transaction. Once the new house is built you can consolidate both loans back into a conventional mortgage.

2010-03-04 08:41:28 by James

Price: $19.95

I am a single mom that suffered the loss of a home due to divorce. I want my own home again instead of renting. How do I find a lender that will give me a home loan, even though, my credit isn't very good? How do I find a lender, who is willing to give me a chance to prove myself, again?

There are government backed loans that do not take credit score into consideration. Talk to a mortgage lender in your area that will know about local programs you might qualify for.

Chin up and good luck!

2007-11-23 12:54:44 by wendy b

Price: $59.95 $45.98

Plus, includes a download of one TurboTax State product
Includes Audit Risk Meter which helps you reduce your chance of an audit
Includes Free Federal E-File and one download of a TurboTax State product

I signed to purchase a home for $700,000. House will not be done until April 2007. Between now and then, if the prices of the homes drop, will I be obligated to pay what I signed up for or do I only finance what the house is worth at the time?
FYI - contract was signed with a builder. You can not qualify for an amount more than the appraised value, shouldn't this be reason for them to take the price down? Also, since it is quickly becoming a buyers market, shouldn't I be able to leverage that and negotiate with the builder? Any suggestions on how I can do that?

if the appraised value will be less,then you agree to pay for this house- you have 2 options: renegotiate the price with the builder or walk out from the contract, because lender will not lend you more money then the house is worth. you have check your contract, because i don't know how this work in your state, but those are general rules .

2006-10-30 09:52:35 by Georgina

I need to know how to go about financing a home that i want to build I own a lot free and clear in city limits and have a home plan that i would like Now i need to start preparing my finance and i don't know where to start Please help

Talk to lenders about construction loans. They are specifically designed for your needs.

2008-05-19 15:13:09 by builder