There are three different types of financing you can use to buy a home:

1. Conventional financing. Many people don’t know that you can use conventional financing and put down as little as 3%. With conventional financing, you’ll have a lower PMI (private mortgage insurance) rate if you put down less than 20%, but you’ll likely have a higher interest rate, so compare financing types before moving forward. It’s a bit more difficult to qualify for this type of financing, so if you have bad credit or a high debt-to-income ratio, this may not be the best option for you. However, if you have great credit and put 20% down, this is often the best financing for you.

​​2. FHA financing. FHA stands for Federal Housing Administration. With this loan, you can buy a home with as little as 3.5% down. This loan is easier to qualify for because you can have a lower credit score and a higher debt-to-income ratio than what you'd need for conventional financing. Typically the interest rate for FHA financing is lower than with conventional financing, but the PMI rate is often a bit higher. If you’re putting down 10% to 19%, your PMI insurance will come off the loan after 10 years.

3. VA loan. You can only qualify for this loan if you or your spouse is a veteran. You can buy a house with this loan for as little as 0% down up to any loan amount. Little known fact: You can get up to a $2 million loan, though you still have to have the income to qualify. This is a wonderful loan, easy to qualify for, they work with lower credit scores, and they allow a much higher debt-to-income ratio.

If you have any further questions about these financing options or real estate in general, reach out via phone or email. We would love to help you.

I’m explaining the three ways you can buy and sell a home simultaneously.

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If you need to buy and sell a home at the same time, there are three ways to do it:

The first way is to put your house on the market, secure a buyer, then find a new property you want to buy. This is the typical way people buy and sell simultaneously. However, you may be asking how you’ll guarantee yourself a home to move into once you sell your current house. Well, when your home goes into escrow, we will add that this contract is contingent upon you finding another house to buy. If you don’t end up finding a property you love, your buyer can either wait longer, or they can back out of the deal and you’ll find another buyer. 

The second way to buy and sell at the same time is to find a home you love and want to buy first. You’ll write an offer, and if the seller accepts, they’ll give you a certain time frame in which to sell your current house. Then you’ll put your current property on the market and secure a buyer for it. You’ll end up closing on the same day, then we give a variance for possession so you have time to move out. 

The third way to buy and sell a home is to put your house on the market and sell it, then do a rent-back for 30 to 90 days, or find temporary housing. (A rent-back means you’ll live in the home a little longer, though you no longer own it.) This is one of the most competitive ways to buy and sell because you’ll have cash in hand when making an offer, rather than a seller having to worry about you finding a buyer for your current house.

If you have further questions about buying and selling simultaneously or concerning real estate in general, feel free to give us a call or send an email. We would be happy to help you.