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Moving Up Without Selling My Current Home

CROFTON MD REAL ESTATE Q & A

Q.  How can I take advantage of today’s low prices and interest rates to buy a home, when I can’t even sell my current home?

A.  Most of us think in terms of selling our current home so we can use the equity to purchase our next one.  There are other options for some Crofton area residents, however.  

Postcard - 12th holeIf you’re eligible for a VA or FHA loan, you may be able to purchase that new home without tapping into the equity of your current home.  Good news, in a buyer’s market. 

The FHA down payment is still just 3.5% of the purchase price, and sellers may pay part of the buyer’s closing costs.  There’s talk of increasing this down payment requirement, so it’s important to take advantage of this sooner, rather than later.  Additionally, legislation which sets a loan limit of $560,000 in Anne Arundel County is due to expire in fall.  If that occurs, the loan amount could drop about 25%. 

Veterans can still buy a home with no money down, and sellers may pay all or part of their closing costs.  Many veterans are eligible for a VA home loan, even if they used one in the past.  That’s because homes sold with a VA assumption are likely to have been sold, refinanced, or even paid off by now, freeing up that VA eligibility. 

Many of the same Crofton area residents who qualify for a VA or FHA loan on another home have enough equity to rent their current one with a positive cash flow. 

If you don’t need the equity from your current home to buy now, what are you waiting for? 

P.S. Are you sure you can’t sell your current home?  Have you tried?  31 homes sold in Crofton MD last month, up almost 15% from the same month last year.  35 homes sold in Odenton and 9 homes sold in Gambrills during May 2011.

Copyright Margaret Wioda.  All rights reserved.

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