Need to sell before you buy? Maybe not.
"I need to sell before I can buy." It's a sentence that we hear daily and unless your one of the fortunate few with a mountain of cash reserves, it's something that most homeowners in the Roseville area are up against when it comes time to move. Particularly for those looking to upgrade.
We have had great success in maneuvering through the "contingent offer" scenarios. In fact, we have completed over a dozen of multiple-contingent sales. The scenario goes something like this: buyer is buying contingent upon them selling, seller is selling and then buying contingent on them selling, second seller is selling contingent on them buying, second seller is also buying contingent on them selling.
According to my sources at Princeton Capital, Freddie Mac has announced new guidelines that might loosen the constraints to this process. Instead of having your home "sold" prior to moving, you just need to be moving along in the process...
Here are the new guidelines effective October 26th, 2015:
- You'll need only 2 months of reserves for your current property mortgage payment
- You'll need 0 months of additional reserves for the subject property as long as it is being purchased as the primary residence
- IT GETS BETTER: If you have an executed sales contract on your current property (it's been sold but hasn't yet closed), the current monthly payment for your primary residence can be excluded from your monthly debt-to-income ratio.
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