So, you're wondering how you can afford your dream home when you're waiting for your current house to sell. It's a common concern for many home owners. The good news is, you don’t have to wait! Consider a few of the options below and stop letting your current house hold you back from the new home you deserve.
Rent Until You're Ready
Building a new home takes time, particularly if you want to build from scratch opposed to purchasing a spec home. This may mean your old home will sell before you can move into your new one. Why not move into an affordable rental in the interim? This keeps you in your desired area and takes the pressure off making a quick sale of your old home. Plus, you can take your time making decisions with your new home's specifications.
Rent to Someone Else
On the other hand, you can opt to keep your old home and make some added cash while you're at it. Consider renting it out for an added profit. This way, you can move into your new home right away while having someone else pay your old mortgage for you!
Porting Your Mortgage
Porting your mortgage means transferring your existing mortgage to your new home. This option can vary from lender to lender, but it is one of the most effective things you can do if you're looking to buy and sell at the same time. Not only will porting lock in your old interest rate, there are also little to no charges if you're downsizing to a smaller home (buying a larger home may come with a few additional costs). Be sure to speak to your lender to see if porting is the right option for you.
Home Equity Line of Credits
A HELOC, or Home Equity Line of Credit, is a loan that's influenced by the amount you have left over on your mortgage on your current home. This type of loan is somewhat comparable to a credit card, as it would typically be set up with an account including annual maintenance fees.
What sets a HELOC apart, is you can receive a loan based on up to 65% of your home's existing equity. This means you can put it towards a downpayment on your new home while you're waiting to sell your old one. You'll also have 20 years to pay off the loan, which is more than a reasonable amount of time to pay back your downpayment.
There are many ways to purchase a new home before you sell your old one, so don’t be afraid to weigh your options. Speak to your builder's preferred lender about what choices are available to you and start looking forward to your new home!
Our knowledgeable show home representatives can help you answer questions about finances and more. To get out to any of our showhomes, we've made it really easy for you. We've created a print-friendly show home map that you can download, print and take with you in the car when you go to tour show homes. Simply click the button below and download your FREE copy now!