You finally found a great house, just there is a problem. You still haven’t sold your current property. What are your options? In this blog, we’ll try to help you what to do if your house hasn’t sold yet in TX.
The moving process can become hectic when you are trying to buy and sell a home at the same time. Some lenders, such as FHA, Fanny Mae, and Freddie Mac have special rules about getting a second mortgage when you still own your home. If you want to get another mortgage, you will have to solve some issues first.
How to Move if Your House Hasn’t Sold Yet in TX
Check if you meet the criteria to qualify for a second mortgage through FHA.
You’ll need a good reason for having to move right away, and not after your current property gets sold. Examples include moving because your family needs a larger living space, you are getting divorced or you are relocating because you’ve got a new job in a different town or state.
In addition, you cannot owe more than 75% of the value of the first home. There are some other restrictions so you need to do your homework before assuming you will qualify for a second FHA loan.
Borrow from your family – just put everything in writing.
Agree to pay them back in full upon the sale of your first house. In case you borrow money from family, you should write down clear terms on when and how you will pay back.
In case you feel that family relationship could deteriorate because of money, you might want to look for a different source of funding.
Get a “bridge loan” ( “wrap” loan ) – it can help “bridge the gap” while you try to cover two house payments.
These types of loans will take both mortgage payments, and combine them into one interest-only payment. These are typically short-term loans, lasting 6 months to one year.
Lenders have different requirements, but you must typically have great credit and be financing less than 80% of the value of both properties.
Talk to your boss or plan administrator about borrowing from your 401k – may not be the best solution but can be an alternative
Make sure you understand how the tax penalties will work, and make sure you pay back into the 401K after you sell the house
Ask the seller of the second home, if he would like to rent it back from you for a few months.
Depending on their situation, they might love the idea of being able to stay in their home while they look for a new one. This may help you carrying two mortgage payments at once.
Add in a contingency in your offer- conditioning closing to the sale of your existing home.
If your home is new to the market and priced well, it should sell right away. Present this to the owners of the second home, along with your offer. Ensure them that the closing won’t be delayed and that you agree to close in a certain amount of time