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2. Looking for a Home >> State of Connecticut Home Page

Jim and Christina F in Danbury,CT

"We would like to thank everyone at Acorn Home Mortgage for the wonderful job they did in helping us close on our dream home. Acorn Home Mortgage went above and beyond our expectations, you were there holding our hand nights and weekends discussing all sorts of scenarios and possible financing options. You even helped us to setup a Home equity line in case we needed it (which turned out to be the case). It was a long 6 month process the office was very responsive when it came to crunch time everything was taken care of effortlessly, without errors or problems. Even our builder was impressed with your efficiency!

Thank you again for a job well done."

You have found your new home but your current home has not sold. What can you do to utilize the equity in your current home? There are a couple of options available for this scenario.

The first option for tapping into your current home equity is to consider a home equity loan. Under this scenario, the homeowner would apply for a home equity loan on their current home in order to use the equity draw on the new home. At this point, a new loan is needed to close on the new home. Therefore, the homeowner may end up with a first and second on the old home and another new loan on the next home. This does give the homeowner the flexibility of selecting the mortgage they want on the new home and not looking at a refinance after the first home sells. Once the first home is sold, the buyer is left with one loan which satisfies his or her needs.

With this scenario, the homeowner has several things to be concerned with in order to qualify for all three loans. The amount of income to support the loans, the ability to acquire a home equity loan on the home which is for sale and qualifying for the loan on the new home with the qualifying gross income to debt ratios. Finding the right programs and lenders are critical. Let us help you weave through this analysis and process. We work with over thirty lenders, which maximizes our ability to find the right program and lenders for you.

Our relationships with top lenders enable us to manage the process for you. Many lenders will not want to do a home equity on a home that is being sold. However, we will assist you as a service to prepare you for the new home by working with lenders to secure the home equity.

The second scenario would be a Dual Property Loan. This would enable you to use one loan that blankets both properties. In most cases it helps the buyer to increase their buying power so there may be very little money needed to put down to purchase the new home. Depending on how much equity you have in your current home, you may be able to borrow up to the purchase price of the new house. This type of loan is a blanket loan and once the first home sells the lien is released on the first home. The resulting balance is placed on the new home.

This mortgage program worksheet explains how it works. This loan is usually an Adjustable Rate Mortgage (ARM) type loan. At this point the homeowner may keep the loan or refine to a different type of product. Depending on the loan size and circumstances, an analysis should be done to determine what program best meets your needs. In some cases, staying with the ARM product may be the correct program. Once again, each case is unique and requires a review. With this option there is typically a pre pay penalty. This prevents the homeowner from locking into a stable mortgage product.

Avoiding the Hubbard Clause
Cross Collateral Loan
Cross Collateral Mortgage
Waiver of Contingency for Sale of Buyer's Real Estate

Tel. 203 682 0246
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