Room to Grow Into Your Next Home.

Saxton Mortgage does. On at least one conventional program we offer, if your current home is pending sale but will not close before the new purchase, both the current and the new housing payments are counted when you qualify. The current home’s payment can be left out once you provide the executed sales contract and confirmation that any financing contingencies have been cleared.

Not under Fannie Mae rules, which accept a bridge loan as a source of funds. The bridge loan cannot be secured by the new home. The lender must also show you can carry the new home, the current home and the bridge loan together, along with your other debts.

Yes, when the old home will not close with title transferred before your new loan. Fannie Mae then qualifies you with the current and proposed housing payments together. The old payment comes out once you provide the executed sales contract and confirmation that financing contingencies are cleared.

Yes, with a lease in place. On an FHA loan, rent from a home you are leaving counts only if you are relocating more than 100 miles away. FHA also needs a lease of at least one year after closing, proof of the security deposit or first month’s rent, and an appraisal showing market rent and your equity.

Yes, in a few defined cases. FHA allows it when you relocate for an employment reason and the new home is more than 100 miles from your current one. It also allows it when a co-borrower stays in the old home, or when more legal dependents mean the home no longer fits and an equity test is met.

At least one program allows it with no sales contract yet. The home must be listed, or you sign a letter of intent to list it within 90 days of closing, and an appraisal must document your equity. You also hold 12 months of that home’s housing payments in reserves, or 24 months if the appraisal shows a marketing time over six months.*

One program lets the old payment drop out when that sale closes within 30 days of the new loan. You need the executed contract with all contingencies cleared, and the sale must be arm’s length. No appraisal of the old home is required, but the sale must net a positive amount or your assets must cover the shortfall.*

Fannie Mae treats money borrowed against real estate you own as an acceptable source for the down payment, closing costs and reserves. The payment on that loan counts as a debt when you qualify. If it has no required monthly payment, the lender calculates an equivalent amount and counts that instead. Learn more about cash-out refinancing.