I just turned 64 and was laid off. I had planned on working another year but the new company that acquired my former employer wanted to replace me with one of their own people. So while drawing unemployment at the moment I doubt that I will go back to work. I can afford retirement now if I want to.
I own my home free and clear and want to buy another home in a different city for equal to or less than the value of my current home. I figured that I would arrange for a short term/bridge loan so I can begin shopping for the new home and be ready to make an offer as soon as I find a place I like. The real estate market in my current location is hot with time on the market typically only 30 days before selling so I wouldn't need to hold a new loan for very long.
I went to the bank that held my former mortgage and they told me that they no longer offer bridge loans. They would only give me 80% of the appraised value as a home equity line of credit and furthermore, since I am unemployed they said I wouldn't qualify since I have no source of income. They suggested that I start drawing money out from my IRA to show income which doesn't sound like a good idea as I will be taxed on it and don't need it. Plus I don't have the other 20% in cash that I may need if I find a new home that is equal in value to my current home.
I checked with 2 other banks and got the same story about a loan. This irritates me as I have an 850 credit score, no debt and 100% equity in my current home in a desirable neighborhood.
What do people do these days when they want to find a new home and then sell their current residence ? Should I go online and look for some private equity firms or lenders ? I may find a new home I like in a month, or it may take a year but I want to have the financing arranged so when i find a place I like I can make a cash offer and jump on it.
I figure that I will only need the money for 90 days once I make an offer on a new home, maybe only 45 to 60 days.
I own my home free and clear and want to buy another home in a different city for equal to or less than the value of my current home. I figured that I would arrange for a short term/bridge loan so I can begin shopping for the new home and be ready to make an offer as soon as I find a place I like. The real estate market in my current location is hot with time on the market typically only 30 days before selling so I wouldn't need to hold a new loan for very long.
I went to the bank that held my former mortgage and they told me that they no longer offer bridge loans. They would only give me 80% of the appraised value as a home equity line of credit and furthermore, since I am unemployed they said I wouldn't qualify since I have no source of income. They suggested that I start drawing money out from my IRA to show income which doesn't sound like a good idea as I will be taxed on it and don't need it. Plus I don't have the other 20% in cash that I may need if I find a new home that is equal in value to my current home.
I checked with 2 other banks and got the same story about a loan. This irritates me as I have an 850 credit score, no debt and 100% equity in my current home in a desirable neighborhood.
What do people do these days when they want to find a new home and then sell their current residence ? Should I go online and look for some private equity firms or lenders ? I may find a new home I like in a month, or it may take a year but I want to have the financing arranged so when i find a place I like I can make a cash offer and jump on it.
I figure that I will only need the money for 90 days once I make an offer on a new home, maybe only 45 to 60 days.