I am single, retired, and own my home. (No mortgage.) I am planning on moving back to my home state. I have the money in the bank for 20 percent (or more) down on a new house but I cannot pay for the house in full until my current house sells. I do not want a mortgage on the new house and I am only looking at houses of lesser value than my current house. My only income is social security so a mortgage is not an option.
I have no idea how to proceed. How do I make this happen?
Someone please explain like I am five.
Thank you!
Would a bridge loan work for me?
byu/Worldly_Abroad_1069 inpersonalfinance
Posted by Worldly_Abroad_1069
6 Comments
Sorry OP, but I don’t think you’re going to get a loan if your only income is SS. You’ll likely need to wait on your current house to sell, and then purchase the new home sequentially.
Call some realtors and/or banks (include a well-regarded local credit union) in the market you’re looking in, and ask what buyers in your position are doing.
The only real option here is a contingent purchase once you’re under contract on your current house. Essentially waiting for the sale of your current home to close, but not waiting to go under contract on the new purchase, before closing on the purchase of the new one. Contracts are written like this often so I would recommend a realtor to help you understand the process.
As a buyer you can 100% make offers on houses that are contingent on your current house selling first. Call some local realtors and explain the situation to them.
You’re actually in a pretty common situation, it just feels confusing the first time you go through it.
A bridge loan *can* work in theory, but they usually involve higher rates and qualification requirements, and with only social security income that could be tricky.
A good real estate agent can walk you through the exact timing (when to list, when to offer, how to structure the contract) so everything lines up without you needing to take on a loan.
Work with a realtor. They will be able to help with you.