Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

1 Bump

Is it normal for people to rent in between selling a home and buying another.

I'm downsizing. I have about 500k in equity in my current home which I plan on putting right back into my new home. My realtor says because I don't have any cash for a downpayment, I have to rent before I can buy. Is this normal? I'd really not have to do that.

 
Anonymous

Asked by Anonymous at 2:36 PM on May. 23, 2013 in Home & Garden

This question is closed.
Answers (9)
  • No. You can make the offer to buy the next house contingent upon yours selling within X amount of days (usually 30). It isn't as strong an offer, but a lot of people will take it especially if you are close to their listing price and the longer the house has been sitting, the better chance the sellers will accept a contingent offer. But, if your house doesn't sell, then you don't get the house you want.
    missanc

    Answer by missanc at 4:11 PM on May. 23, 2013

  • In today's market, it may be. Your house could not sell for a year.
    3libras

    Answer by 3libras at 2:50 PM on May. 23, 2013

  • Some people get swing loans for in between, but considering the market in some areas, that may not be a good choice for you.
    SWasson

    Answer by SWasson at 2:58 PM on May. 23, 2013

  • You could also ask your bank about a bridge loan. They loan you the money based on your equity and you can use it for your down payment. Then you pay the loan back as soon as you pass papers on the new place. It was popular years ago. I assume the banks still do it. Worth asking about, at least. GL!!
    silverthreads

    Answer by silverthreads at 5:17 PM on May. 23, 2013

  • How else would you put money down on another home if you need the money from the sale of yours to buy another?
    ILovemyPaulie

    Answer by ILovemyPaulie at 2:59 PM on May. 23, 2013

  • We've bought two houses and have never done that.
    Crafty26

    Answer by Crafty26 at 4:15 PM on May. 23, 2013

  • I've known many people who put their stuff in storage and rented apartments because their houses sold quicker than they thought, or their new homes were still being built.
    Ballad

    Answer by Ballad at 7:03 PM on May. 23, 2013

  • You don't HAVE to rent, but if the buyers of your home want possession upon closing, you're going to need a place to stay.
    DivaNCali

    Answer by DivaNCali at 8:25 PM on May. 23, 2013

  • You don't have to but it doesn't seem bad if you do either. I've known a few people who did this and one was also waiting for her house to be built as part of a new community. You might try to find a place that does 6-month or month-to-month leases and put most of your stuff in storage. Usually homeowners that share a house have easier lease terms. See Roommates.com
    hellokittykat

    Answer by hellokittykat at 11:35 PM on May. 23, 2013