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How can qualify for a loan using my Free&clear home as colateral for a $110,000.

I Have my home listed with my real estate agent for $239,000.
My intention is , use the proceeds to pay off the house I buy for $110,000. Thank you.
Eddie W. Gilbreath
  • November 06 2010 - Neihart
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Answers (4)

Best Answer

I agree with Jim that you will have trouble getting a loan on your present home to purchase another if your home is on the market.  However, a good alternative would be to get an equity line on the new home that you can pay off when your home sells.  (Reason:  Closing costs are extremely low on an equity loan.)  You would still need to come up with a down payment to cover the difference between the maximum equity loan you can get and the purchase price.  Hope this helps.  Good luck.
  • November 06 2010
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Your bank may give you a short term "bridge loan" to secure the new property if all qualifying criteria are met.  You could pay the bridge off when the old home sell.
  • December 31 2010
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Even a better idea Lola.
  • November 06 2010
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If your income, expenses, credit score, assets and liabilities allow you to qualify, you could get a loan against your exiting home assuming it appraises, with one exception.  Since you home is for sale, you will have difficulty getting a loan on it no matter what your intention is to do with the proceeds.

If meet the qualifications above, you could get a loan on the new home you are buying and pay it off when your existing home sells.

I hope that answers your question. 
  • November 06 2010
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