Profile picture for alexj81996

What are our options in selling our current home and upgrading to a larger home

We just purchased a home last year with an FHA loan and have already outgrown it.  We would like to sell our current home and upgrade to a larger home. We've been current on all our bills and mortgage.  What are our options?  We live in Los Angeles County...Would love good sound counsel 
  • August 01 2011 - Pico Rivera
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Answers (5)

The other agents provided great information.  Given you don't qualify for an FHA loan  the financing is your main issue.  You will have to dip into your saving for a larger down payment for a conventional loan.  Additionally you may look into moving into a rural area for a rural housing loan.  Lastly you may have to rent out your home and rent to own a larger home that you purchase in a few years.

    If you can find a solution to the financing piece contact an agent.  A builder may do buy-back programs to purchase your current home and sell you a larger new home. 
  • August 04 2011
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Difficult but not impossible. In order to give you good sound counsel a realtor would need more details about your situation. You should talk to someone in person. What's the worse that could happen?

Best regards!
  • August 04 2011
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Profile picture for Trinidad.Gaeta
Good Afternoon, 

Here are a couple scenarios:

1. Sell your current home. If you owe more than you the property is worth, you'll have to bring cash to the table to make it work. If you opt for this option, you will be able to purchase with FHA financing once again. 

2. You can rent out your current home and purchase a larger home however, you'll have to secure conventional financing. If you opt for this option, you will need to qualify with the first mortgage counting against your monthly expenses( part of which can be offset with rents received).

3. There are other alternative loan programs but not very favorable. 

Based on the information provided, these are some of your options. Hope that helps.

 
  • August 02 2011
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Profile picture for wetdawgs
Is there something standing in the way of the traditional approach?  Put it on the market, sell it, purchase something new?

Changes are extremely high you've got no equity in the property.  If you are lucky, you will not have to bring money to the table to close.

How are your savings for a down payment on a new purchase?
  • August 01 2011
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Hi Alex,
It looks like that since you just purchased your home last year, it will be impossible for you to sell at this time.  Your best option is to rent it out and buy a new home.  Your lender must understand what you will be doing so they can consider a rental income from your current home.  Just a note, you will not qualify for an FHA loan anymore since you just purchase a home in the last 3 years and currently owns a home.
  • August 01 2011
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