I have searched any keywords I can think of. Here’s my situation.
1) I own my current property, owe 70k, worth about 270k.
2) I have found a property I’d like to buy, 385k list.
3) I try to maintain low cash reserves and high investments into Roth, 401k etc, so I don’t have the cash for a second downpayment. Let’s call it 40k in liquid and semiliquid assets, the rest is untouchable. I need ~80k to close.
How do I sell my home, use the proceeds from that sale to fund the downpayment on the new home? This has to be the simplest thing… Do I need to “rent back” from the buyer for a week?
Or do I need to move all my belongings to a storage unit, wait a week in a hotel, then close on the new home?
Other options I’ve seen mentioned are bridge loans and HELOC but I’m not sure how the timing of that might affect my eligibility for the new loan.
If it matters, I have a good enough DTI ratio that I can easily pay both mortgages simultaneously if necessary. Any and all advice is very welcome. I’m a nerd about finance and real estate valuations, but I hadn’t really ever looked into what exactly is involved in buying while selling.
My last home I wasn’t living in when I sold it and we had no belongings (Hurricane Harvey) so it wasn’t exactly very complicated, I just sold it as is to be rebuilt by the flipper who bought it.