You’ve finally located the house of your dreams. There is only one issue here, and that is the fact that you have not been successful in selling your house as of yet. So what do you do? If your house in Georgia hasn’t sold yet, we hope that this article will shed some light on how you can proceed with your relocation plans.
When you are trying to buy and sell a home at the same time, moving can be a very difficult process. Getting a second mortgage while you still own your home is subject to regulations set forth by the Federal Housing Administration (FHA), Fanny Mae, and Freddie Mac. There are a few obstacles that need to be overcome before you can qualify for an additional mortgage loan.
What You Should Do If Your House in Georgia Hasn’t Sold Yet and You Need to Move
To begin, you have to fulfill a number of requirements before the Federal Housing Administration (FHA) will consider you for a second mortgage.
You need to have a compelling reason for moving out of your current home right away, rather than waiting until after it has been sold. For instance, relocating because your family requires more space, because you and your spouse are divorcing, or because you need to for work-related reasons.
In addition to that, the amount that you owe on the first home cannot be more than 75% of its value. Before assuming that you will be eligible for an additional loan through the FHA, you should do your research because there are additional restrictions that must be followed.
There is also the option of asking members of one’s own family, provided that everything is documented in writing.
Make a pact with them to repay the loan in full once you have sold your first home. When you borrow money from a member of your family, you want to make sure that the terms are laid out clearly and that they are followed.
If you have reason to believe that a relationship with a family member could be harmed due to financial strain, you should probably look for an alternative method to obtain the necessary financing.
When you are trying to make two mortgage payments at the same time, getting a bridge loan, which is also sometimes referred to as a “wrap” loan, can help “bridge the gap.”
These are the loans that will take both of your mortgage payments and combine them into a single payment that is for the interest only on the loan. These are typically considered to be short-term loans, with terms ranging from six months to a year.
Different lenders have different requirements, but in general, you will need to have excellent credit and finance no more than 80 percent of the combined value of the two properties.
You can discuss the possibility of taking a loan from your 401(k) with either your employer or the administrator of the plan, even though this might not be your first choice.
Make sure that you have a good understanding of the way the tax penalties will work, and then make sure that you reimburse yourself after the sale of the first home. Although this is not necessarily a choice for everyone, it is unquestionably something that should be investigated.
Make every effort to present the seller of the second home with the possibility of renting the property back from you for a period of a few months.
Depending on their circumstances, they may be thrilled at the prospect of being able to continue living in their current residence while they look for a new one. If you are trying to carry two mortgages at the same time, this is an excellent way to reduce the cost of those mortgages.
Include a clause in your offer that states you will only be able to close on the purchase of a new home after the sale of your current residence.
If your house is competitively priced, it should sell quickly if it is brand-new to the real estate market. 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 the closing, and state that you are willing to complete the transaction within a predetermined amount of time.
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