Thinking about making a move but don’t want to go through the headache of selling your home before you buy the next one? We get it, a lot of our buyers have that same concern and ideally they’d be able to buy the next home before they sell the current one.
That can be tricky to do though. For many buyers they understandably can’t qualify for a mortgage on the next home until they’ve sold the current one. That’s because with most loan programs the buyer has to have enough income to qualify to carry both mortgages at once, which is tough! Well we have good news!
One of our neighborhood go-to lenders, Matt Tenney with SWBC Mortgage, has a loan program that can help. With his loan program, the underwriter takes into account that you’re going to sell your current home after you buy the new one and doesn’t count that home’s debt in the debt to income ratio. That’s great news, because it allows many more homeowners to qualify for their new home loan.
Below is a quick summary of the loan program from Matt and you can see us discuss it more in the Facebook Live we shot below.
“Just a quick summary of this loan program to help buyer’s put a non-contingent offer in. They need to intend to list their home within 90 days after closing. With a couple parameters I’ll list below, the lender can effectively not have to count their current mortgage payment in their debt to income calculations. A few things to note:
– They must put at least 20% down on the new home, those funds can be cash assets, equity from the current home via “HELOC” (home equity line of credit) perhaps, or a gift from family.
– They must have 20% equity in their current home documented with an exterior-only appraisal.
– They must have 6-12 months of mortgage payments for their current home & new home in savings. This can be satisfied with cash, investment accounts, and/or retirement accounts. The funds don’t need to be liquidated as long as they have the ability to liquidate them.
If you think you may be a good fit for the loan program described above I’d love to chat. You can reach me, Matt Tenney, at (303) 709-7501 or firstname.lastname@example.org.” (NMLS ID: 943242)