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A: Why use a Connecticut Mortgage Broker?
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2. Looking for a Home >>
State of Connecticut Home Page >>
Avoiding the Hubbard Clause
As you begin to outgrow your current home, you want to investigate 'what will it take to get to my next home?' You may want to use a Cross Colateral Mortgage . Part of the process you evaluate is if you have enough equity in your current home to put down on the next home. Then what is the best way to get the equity, sell your home and buy you next home. This step can be quite a juggling act. And then what if your home doesn't sell?
The Hubbard Clause is available to submit with your offer on your next home. The Hubbard Clause explains to the seller that you have a home to sell before you can buy the next home. Most sellers will not accept the Hubbard Clause as part of an offer. So what should a buyer do when they have a home to sell?
Currently, there is a mortgage program available which will enable you to use the equity of your current home to put toward your next home, it's called a Cross Collateral Mortgage. As the trading up home owner you are able to qualify for this new mortgage amount based on 80% combined value of the current and the new home minus the current mortgage amount. This Cross Collateral Mortgage worksheet explains how it works.
The benefits include:
No Hubbard Clause needed
Competitive rates (This is not a bridge loan, it is offered at conforming rates)
Single loan for the new home
Stated and Non Stated programs
No need to refinance if you sell the first property
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