You Can Buy Before You Sell

There is a number of loans in our arsenal which allow clients to buy a new property before selling the old one.

Recently, we had a presentation in our office by David Olsen from The Loan Store, who offered different new twists to the old story. Please click on this link to watch a fragment of our conversation with David.

…He used an example where departing/selling property value was $1,000,000 with the mortgage of $500,000. In this case, the lender will take 25% off, thus the balance is $750,000 minus $500,000 leaving $250,000 for the down payment or any other needs. This loan does not have monthly payments, and the only cost for the client is 2.4% or $24,000 which is going to be deducted when the property is sold.

We, mortgage brokers, do not earn any commission on this transaction. The remaining amount is going to be used for the down payment on the purchase of the new property, which will follow a normal underwriting guidance, for which it has to be qualified…

Feel free to call me with any questions, and I promise to help!

Manny Kagan,
President,
Pacific Bay Financial Corporation
(415) 225-7920
[email protected] 

NMLS #205637
DRE #00824602