We own a home on a lake in our area that is 40+ years old. We did nice rehab on main level, but no way to raise the low ceilings. This is my dream location but my husband and 2 teen daughters are not happy.
There is a beautiful new build street with the open concept modern home design, 3 car garage, in our school district we can get in soon.
I can't see doing HELOC to pull out cash since we have an amazing rate on our current home. We qualify just enough to keep current home and take on a new home. We need more space and once kids graduate can move back into the lake house.

ISSUE is getting 20% down. I cannot let my dream lake house go, and we could NEVER afford another lake house in our community as Hollywood and inflation has drastically changed our housing prices.
We can easily rent our lake home (long term) as we are in top rated school district and the lake location is desirable.
The new home is about $825,000. We have very healthy savings in our 401k and our emergency savings fund. We have no debt outside of our home and maybe $5000 left on my car.
My income does not qualify for our DTI as I clean houses some, but don't have 2 years of 1099s yet.
Refinancing our home will put our DTI over lendable limit.
We plan on taking out loans on our 401k to make our down payment, but with a $50k max on each 401k still leaves us $65,000 short to reach 20% to avoid paying PMI. And we will pay back the 401k loans in 4 years once both kids have graduated.
I was already denied a ‘gift’ option from family because they are on a fixed income.
Does anyone know of a way to get funding from a private investor that knows our Peachtree City area? Thinking we could get the down payment with deal to pay back the investor with small monthly payments and balloon payment with interest once we sell?
Would a better strategy be to sign a note that after we sell in 4-5 years the investor gets 1/2 any profits from the rapid appreciation we see?
We are being physically squeezed by our older home, but I cannot let my dream go of the lake life. I want to find a solution in effort to maximize family harmony!
And finding a home with more space in our area is extremely difficult when you don’t have a budget of $1.0 M.
Any suggestions are appreciated!