How can I get a temporary loan for house of similar price to the condo I own?

I own a condo and have a 30-year mortgage which is about 25% paid off; It is my primary residence.
I have found homes within $10,000 of the appraisal value of my condo I like and have well over $20,000 in savings.
—————–
So, in theory, if I managed to sell my condo and get a deal on one of those houses I could use the proceeds from the sale to pay for the new home in cash.
————————-
However, of course, the chance of that happening is VERY unlikely and I would likely have to move into an apartment temporarily and/or take out a second mortgage temporarily (OUCH!)

Is there any smarter way to get some sort of backup money or allowance handy while I switch between the two properties?

All loans are temporary, you’re 30 year loan is a long temporary loan.

What you’re looking for is a "bridge" loan. It’s a loan to get you over the bridge. You’ll pay higher points and interest. I’ve never seen one that was worth it. Just get a regular mortgage with out a prepayment penalty and pay off your current owner occupied when you sell it.

Just make sure you can afford both payments.

This entry was posted on Sunday, March 28th, 2010 at 6:13 am and is filed under apartments condos for sale. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “How can I get a temporary loan for house of similar price to the condo I own?”

mortgage underwriter on March 28th, 2010 at 11:36 am

All loans are temporary, you’re 30 year loan is a long temporary loan.

What you’re looking for is a "bridge" loan. It’s a loan to get you over the bridge. You’ll pay higher points and interest. I’ve never seen one that was worth it. Just get a regular mortgage with out a prepayment penalty and pay off your current owner occupied when you sell it.

Just make sure you can afford both payments.
References :
lucidiousnichols on March 28th, 2010 at 12:06 pm

Since your selling the home you make the rules. When you go to sell your home do it on the condition that escrow must be 60 days. Once someone puts in an acceptable bid on your home and is qualified by the bank, start the process of the purchase of the new home. Once escrow closes on the condo take the money and close the escrow on the home. This will give you time to move and close. You might think about offering the buyers a little money for a 2 week delay after the home closes. Be up front and honest and everything should work out. Just make sure to get it in writing.

Tyler ~ Certified Residential Appraiser ~ California
http://www.Want2Appraise.com They specialize in PARTNERING mentors with trainees.
References :

Real Estate