How to Move Home if Your Florida House Hasn’t Sold Yet

Have you found your dream home? Awesome! But, what happens if you haven’t managed to sell your Florida house yet? Moving home can be tough, especially if your move depends on you selling your previous home.

Moving Home Can Be A Challenge!

It’s no surprise that the FHA, Fannie Mae, and Freddie Mac all have rules about getting a second mortgage while you still own your home. Luckily, in this article, we will explain how to tackle these hurdles and secure an additional mortgage.

First off, to qualify for a second mortgage through the FHA, you must meet certain qualifications.

You need to have a valid and justifiable reason for needing (wanting) to move before your current house has sold. For instance:

You’re moving because your family has outgrown your current home.

You’re moving because you’re separating from you spouse.

You’re moving for financial reasons perhaps a company transfer or new job.

Also, to meet FHA requirements, you cannot have a remaining balance of more than 75% on your first home. If this is the case, there will be additional restrictions on top. Make sure you find out exactly what the FHA requirements are before assuming you’ll qualify for an additional loan.

Asking family can be another route.

Just make sure you put everything in writing. You want clear terms to be set and adhered to. Agree to pay them back in full when your first house sells. But, remember borrowing money from family can cause tension between relatives and not always be a suitable option.

If you think borrowing such a large amount of money will potentially damage your relationship with your family, you might want to look for an alternate way to secure the financing you need.

A bridge loan is another option.

Bridge loans also known as “wrap”…

…interim financing, gap financing, or swing loans bridge the gap during times when financing is needed but not yet available. 

These types of loans will take both mortgage payments and combine them into one interest-only payment. They are typically short-term loans, lasting between 6 months to a year. Depending on the lender, the requirements will differ. But typically, you must have great credit and be financing less than 80% of the value of both properties put together.

Borrow from your 401k. 

While it may not be an option for everyone, you could talk to your boss or plan administrator about borrowing from your 401k. If you consider this option, make sure you understand how the tax penalties work. Plus, you must pay yourself back after the sale of the original home.

This may not be a viable route for everyone, but it’s definitely something worth looking into.

Rent the second home for a few months.

You could offer the seller (homeowner) of the second home the option to rent it back for the first few months. Depending on their current situation, they might love the idea and benefit greatly from being able to remain in their home while they look for a new one.

This is a great way to alleviate the cost of two mortgages at once.

Just make sure it’s blatantly clear that you will need them to leave once your first home sells. Adding a contingency to your offer that allows you to close on the new home when your home has sold is a smart idea.

If your home is new to the market, priced well, and market-ready, securing a deal shouldn’t take too long. Let the owners of the second home know this when you present your offer of renting it back to them for a few months.

Reassure them that the closing won’t be delayed. It might be worth agreeing to a specific amount of time upfront as long as you’re confident your previous home will sell soon.

Whether you are looking to buy or sell, we can help you with all of your Real Estate needs! Check out our website >>> We Buy Florida Houses Fast!
Call our office at (305) 916-3328. A member of our team would love to speak with you. Or, click here to fill out our short form.

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David Veras

David Veras was born in Hialeah, Florida and has been involved in Real Estate since February 2019.

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