how to leverage equity of paid off home

[JJ Flores]

Hello, novice here looking for some advice from this great community, I'll try and keep it brief!

I fully own my townhome here in Las Vegas (valued at $400k+), wife and I would like to buy a larger home (around $600k). I have VA disability/Federal Deferred retirement/self employed1099 income, but isn't enough to qualify for a new loan on it's own. (also, no debts at all and credit scores over 800).

Really want to avoid selling current home and renting it back for a while from the buyer until I find another home, get a loan for the difference. Realtor friend suggested a bridge loan or Heloc but neither seem viable from my research.

I would think there would be a way to leverage the equity in my current home in this situation? Any advice is appreciated, thanks!

[JJ Flores]

Quote from @Don Konipol:

Quote from @JJ Flores:

Hello, novice here looking for some advice from this great community, I'll try and keep it brief!

I fully own my townhome here in Las Vegas (valued at $400k+), wife and I would like to buy a larger home (around $600k). I have VA disability/Federal Deferred retirement/self employed1099 income, but isn't enough to qualify for a new loan on it's own. (also, no debts at all and credit scores over 800).

Really want to avoid selling current home and renting it back for a while from the buyer until I find another home, get a loan for the difference. Realtor friend suggested a bridge loan or Heloc but neither seem viable from my research.

I would think there would be a way to leverage the equity in my current home in this situation? Any advice is appreciated, thanks!

Find a house for sale where the owner owes no money (nationally, about 40% of homes are owned free and clear).  Offer the seller a first lien on your town house of say $300k, and a short term first lien on his house of $300k.  One you own the new property get a tenant in, obtain a rental property loan to payoff the seller financed loan, and wait the minimum about of time (usually one year) to convert the property from rental to o/o.  Then move and rent out the townhouse.  Very simple LOL 

 wow thanks so much for the reply but that doesn't sound simple to me as a real estate novice! I think I just need to find someone to lend me $400k that my home is worth and I'll pay them back that plus a high amount of interest in 3-6months once I sell it and move to a new place, maybe need to find a LV loan shark :) Just trying to avoid having to sell this place while living in it and having to rent it back.