So you’ve found your ideal home. There’s just one problem: You haven’t sold your house yet. So what do you do? We hope that this article will assist you in determining how to relocate if your house in NC has not yet sold.
Moving can be difficult when you are simultaneously buying and selling a home. The FHA, Fanny Mae, and Freddie Mac all have restrictions on obtaining a second mortgage while still owning your home. A few hurdles must be overcome if you want to secure an additional mortgage.
How to Move if Your House Hasn’t Sold Yet in NC
First off, you must meet certain qualification to qualify for a second mortgage through the FHA.
You need a good reason to move right away instead of waiting until your current house sells. For example, you might move because your family needs more space, you’re getting divorced, or for work purposes.
Also, you cannot owe more than 75% of what the first home is worth. There are also other rules, so you should do your research before assuming that the FHA will give you another loan.
You could also ask your family, but make sure to put everything in writing.
Make a deal with them to pay them back in full when you sell your first home. When you borrow money from a family member, you want clear rules that everyone follows.
If you think money could hurt a family relationship, you might want to find another way to secure the financing you need.
A bridge loan or a “wrap” loan as it is sometimes called, can help “bridge the gap” while you try to make two house payments.
With these kinds of loans, the two mortgage payments are combined into one payment that covers only the interest. Most of the time, these are short-term loans that last between 6 months and a year.
Lenders have different rules, but in general, you need to have good credit and borrow less than 80% of the value of both houses.
You can discuss the possibility of taking a loan from your 401k with either your employer or the administrator of the plan, even though this might not be your first choice.
Make sure you understand how the tax penalties will work, and that you pay yourself back after your original home is sold. Although this is not necessarily a choice for everyone, but it is something to consider.
Try to offer the seller of the second home, the option of renting it back from you for a few months.
Depending on their situation, they may appreciate the ability to remain in their current home while looking for a new one. This is an excellent way to reduce the cost of carrying two mortgages.
Include a contingency in your offer that allows you to close on the new home, only after your home has sold.
If your home is new to the market and competitively priced, it should sell quickly. Along with your offer, you should present this information to the owners of the second home. Assure them that there will be no delays in closing and explain that you are willing to complete the transaction within a predetermined amount of time.