Help Lending Source - Bridge, mortgages, equity? I am 67 yr old widow wants to sell my house and buy new condos. How can I make the best way?
Scenario:
Copy Ranch Home - Very desirable one acre lot
Home has no mortgage
Markets and selling prices are down (which is allowed, it is still feasible)
My cash is about half the cost of condo
Condo is new and the manufacturer will have an emergency (is this a good idea for me or does it increase the cost that I could have got?)
I've never bought or sold a house (we built) and I'm here with the best in what direction is for me. I want to go ahead and market my house and buy the condo.
My goal is to sell the house - buy the condo and have no mortgage when the dust settles. Here are the options I see open to me for less than half the money needed to buy the condo.
1. Withdrawing money 401k (I have not yet untapped)
2. Get a Home Equity Loan and pay when I sell my house
3. Take a mortgage (is there a right to repay at once?)
4. Check into a bridge loan? (I can pay it back?)
5. Forget the condo and just move to an apartment.
If it matters, I live in Wisconsin
I wish there was a class to take to the downsizing of the elderly. The biggest problem for me, in the current market is simply afraid to do it alone and evil. Yes, I'll take a lawyer and yes I will hire a broker RE, but I did neither one yet.
Thank you in advance for any help.
The priority is to sell your home before anything else. Sales vary from 3 to 18 months. When you receive a deposit and signed contract then and only then start looking for a place to live.
To relieve the stress of taking an apartment. Once the dust settled now seek your condo, use the money from the sale of the house as your deposit. Take a mortgage for the remaining 15 years.
Draw from your 401k in the month to meet mortgage payments. This way, you do not get hit with a heavy tax burden by withdrawing a lump sum of 401k. Bridge loans and equity loans are expensive and poorly financially if you do not find a buyer for your home.
Most community colleges offer evening classes on the subject.
Attention here ... The key here is to sell your house first before you commit to the condominium. Bridge loans and HELOC are not an option, the banks do give them, if they know you want to sell your home. You can withdraw your 401k but you pay tax on withdrawals, so it costs 20% to 30% more than the payment at this luxury condo. If you do not mortgage the condo, there should be no charge for prepayment of the mortgage (most lenders to remove only just now). Buy the condo, but selling the first house ... Trust me on this condo market is still there .... Good luck
Posted on February 6, 2010.