Creating Lending for Eventual Primary Residence

[Lance Dacy]

I have an opportunity that would eventually become our primary residence. The home appraised last year for 2.1m, currently on the market for 1.98. I am offering 1.5m (as it needs about $200k in updates for our tastes). My 4 year equity in the home minus mortgage is at $1m, so it's a good deal IMO. I wanted to place no contingencies in the offer, but we need to sell our primary home to get the funds to close. I could explore a remodel / bridge loan of some sort, but not sure what my options are. I could also take the money from another source, but wouldn't be able to carry the 2 mortgages on personal loan I don't think. I was thinking of DSCR as well as it would have no problem with LTV or DSC Ratios on appraised rent vs. expenses. Any creative options I am likely overlooking?

[Jay Hurst]

Quote from @Lance Dacy:

I have an opportunity that would eventually become our primary residence. The home appraised last year for 2.1m, currently on the market for 1.98. I am offering 1.5m (as it needs about $200k in updates for our tastes). My 4 year equity in the home minus mortgage is at $1m, so it's a good deal IMO. I wanted to place no contingencies in the offer, but we need to sell our primary home to get the funds to close. I could explore a remodel / bridge loan of some sort, but not sure what my options are. I could also take the money from another source, but wouldn't be able to carry the 2 mortgages on personal loan I don't think. I was thinking of DSCR as well as it would have no problem with LTV or DSC Ratios on appraised rent vs. expenses. Any creative options I am likely overlooking?

We make buy before you sell loans. More or less, we give you a bridge loan to buy the house even if your debt to income ratio is to high with both mortgages on your ledger. Your DTI would just need to be able to qualify once you have sold your current property. Good assets and good credit are also of course required.