So you have been searching for your new dream home and you finally found it. However, you haven’t sold your current home yet, what do you do? In this article, we hope to help you figure out how to move if your house hasn’t sold yet in TX.
Moving can be tough when you are trying to buy and sell a home all at once. The last thing you need is to mortgage payments.
How to Move if Your House Hasn’t Sold Yet in TX
First off, to qualify for a second mortgage through the FHA, you must meet certain qualifications.
You need to have a good reason for needing to move right away, and not after your current house has sold. For example, moving because your family needs a larger space, you are separating from your spouse or for work purposes.
Also, you cannot owe more than 75% of the value of the first home. There are additional restrictions as well, do your homework before assuming you will qualify for an additional loan through the FHA.
Try renting your home.
Some home owners have no choice and renting their old home might be the best option. Even if the rent you are getting from the home doesn’t cover the cost, it beats thousands of dollars from having a vacant home.
Or worse having the home going into foreclosure.
Asking family can be another route, so long as you put everything in writing.
Agree to pay them back in full upon the sale of your first house. Whenever you borrow money from family, you want clear terms to be set and adhered to.
If you think a family relationship could be damaged because of money, you might want to look for a different way to secure the financing you need.
A bridge loan or as it’s sometimes called, a “wrap” loan can help “bridge the gap while you attempt to cover two house payments.
These types of loans will take both mortgage payments, and combine them into one interest-only payment. These are typically short-term loans, lasting 6 months to one year.
Lenders have different requirements, but you must typically have great credit and be financing less than 80% of the value of both houses.
While it may not be your first choice, you can talk to your boss or plan administrator about borrowing from your 401k.
Make sure you understand how the tax penalties will work, and pay yourself back after the sale of the original home. This may not be an option for everyone, but definitely, something to look into.
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Try to offer the seller of the second home, the option to rent it back from you for a few months.
Depending on their situation, they might love the idea of being able to stay in their home while they shop for a new one. If you are attempting to carry two mortgages, this is a great way to alleviate the cost.
Add in a contingency in your offer allowing you to close on the new home, only after your home has sold.
If your home is new to the market and priced well, it should sell right away. Present this to the owners of the second home, along with your offer. Ensure them that the closing won’t be delayed and that you agree to close in a certain amount of time
What is the quickest a house sale can go through?
There isn’t a definitive answer for this question, it varies per transaction. However, it typically takes 30-45 days to sell and buy a new home using the traditional method. If the buyer is using cash and not financing the purchase, it could be much quicker.
How long do you have to move out after selling you house?
Sellers generally are expected to stay in a sold home for 7-10 days. Sellers might want more time to move, but it’s at the discretion of the new homeowner.