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Really really stupid question from a second time homebuyer
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Date: April 22nd, 2025 5:40 AM Author: Galvanic Center Alpha What did you guys do for the down payment on the second house while the equity is tied up in the first house?
I also accept the answer if you’re so poor that you don’t have the down payment for the second house in cash don’t buy the house.
But I’m curious. |
Date: April 22nd, 2025 5:41 AM Author: Dull stimulating psychic juggernaut I took a portfolio loan. Most people will try to enter into a contract but have it contingent on the sale of their existing home |
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Date: April 22nd, 2025 5:44 AM Author: Galvanic Center Alpha Yeah we were looking to do #2 until we realized that people are literally bidding fuckin 30% above ask which is insane making us less competitive. So I was thinking of throwing my whole cash savings at the down payment and then just holding my breath until my main home sells but then I’m fucked if it takes 3 months and I have to pay two mortgages. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869901) |
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Date: April 22nd, 2025 5:46 AM Author: big plaza it's almost like "real estate" is a total fraud scam for retards (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869903) |
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Date: April 22nd, 2025 6:10 AM Author: avocado infuriating space (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869928) |
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Date: April 22nd, 2025 5:48 AM Author: Dull stimulating psychic juggernaut Look for alternative credit sources to bridge you. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869910) |
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Date: April 22nd, 2025 6:22 AM Author: Galvanic Center Alpha 401k loan and pay it back immediately I’m thinking. Just need like $50k lol. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869939) |
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Date: April 22nd, 2025 6:32 AM Author: Hairless skinny woman do the 401k loan, it’s nbd only risk if the market recovers while you’re out of it but it’s also only 50k so you wouldn’t miss out on much |
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Date: April 22nd, 2025 6:34 AM Author: Galvanic Center Alpha Yeah true. Plus where I am shit moves quick so I should have it sold within a month. Thanks bro. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869948) |
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Date: April 22nd, 2025 7:48 AM Author: Histrionic filthy background story This is dumb boomer advice. Literally no seller wants his house tied up while his buyer attempts to sell their shit house. OP can try but good luck. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48870009) |
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Date: April 22nd, 2025 2:08 PM Author: spectacular pearl organic girlfriend wtf are you talking about?
his advice is exactly what to do but i think he missed the second best option. there are three approaches:
1. portfolio loan - best rate from interactive brokers or box spread (for slightly sophisticated investor with a good amount of capital in portfolio)
2. take HELOC loan on first home. use it as down payment on second home. pay off when first home is sold (loan is more costly than option (1), could pose issue when getting loan for mortgage for second home.)
3. make second home purchase contingent on selling first home (makes you less competitive than other buyers who don't have such contingencies.)
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Date: April 22nd, 2025 2:21 PM Author: Histrionic filthy background story #3 is retarded, as you acknowledge, because sellers dont want to deal with this shit.
he said that "most people will try to" buy contingent on selling. that's just not true anymore. and it's retarded boomerish schtick to think this is true.
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Date: April 22nd, 2025 2:28 PM Author: rough-skinned soul-stirring circlehead and you said he advised that course when he didn't. you're MAF over pedantic bullshit. every contingency comes with a cost, which can vary depending on how hot the market is. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871243) |
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Date: April 22nd, 2025 2:33 PM Author: Histrionic filthy background story >you're MAF over pedantic bullshit
new guy, first day, on xo? |
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Date: April 22nd, 2025 2:40 PM Author: rough-skinned soul-stirring circlehead (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871287) |
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Date: April 22nd, 2025 6:29 AM Author: Vibrant outnumbered meetinghouse can also do a sale and leasback then buy the second house while still living in the first after youve gotten your downpayment back (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48869943) |
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Date: April 22nd, 2025 2:02 PM Author: Laughsome pocket flask appreciate that you are proposing solutions, but in a normal market no buyer is gonna want to grant a leaseback bc who wants to be a landlord who has risk if the tenants don't want to leave (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871141) |
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Date: April 22nd, 2025 2:40 PM Author: rough-skinned soul-stirring circlehead yeah a lease encumbered property is a gigantic risk, especially if OP is an a tenant-friendly shitlib state.
also the buyer is likely going to be in the same place OP is: wanting reduce the amount of time they're owning two properties simultaneously. a buyer who wants to live in the house will be trying to sell his own home or exit at lease, and even if he's certain the leaser will pay and move out, the uncertainty of when that will happen would suck.
you also have other ordinary risks of renting e.g. he fucks up the house in some way. |
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Date: April 22nd, 2025 2:46 PM Author: Histrionic filthy background story cr.
does xo remember my leaseback drama on a house we almost bought? |
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Date: April 22nd, 2025 2:47 PM Author: rough-skinned soul-stirring circlehead nah what happened? (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871316) |
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Date: April 22nd, 2025 2:56 PM Author: Histrionic filthy background story this was at the very height of the crazy market with bidding wars and shit and it was a highly desirable house right near a shul.
kike boomer sellers insisted on a 60 day leaseback to be finalized within 10 days of closing, and we reluctantly agreed despite total uncertainty over the terms of said leaseback. there was no agreement on any basic terms of the leaseback, e.g., the rent payment, the security deposit holdback.
went through the inspection shit and mortgage shit, and the whole time we were very concerned about the ability to work out the leaseback, and during negotiations it became clear they were playing games and trying to fuck us and would squat. these fucking kikes kept insisting on a $5k holdback, which is nothing. we also realized that, two years ago, they had been almost foreclosed on but came up with the cash at the last minute.
we really wanted the house, but there was a real high risk that they were sleazebags and had no intention of leaving. we bailed. lost like $1500 in inspection / appraisal fees, but i guess you have to cut your losses. |
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Date: April 22nd, 2025 3:00 PM Author: rough-skinned soul-stirring circlehead hold onto your cocks when dealing with those desert people...
yeah if they didn't has some financial catastrophe the pre-foreclosure makes it seem like 100% they were planning on fucking you over. what's crazy is that they didn't negotiate so kike-like on the terms of the lease they probably could have really fucked you over by just dishonoring it completely and forcing you to evict them. |
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Date: April 22nd, 2025 3:07 PM Author: Histrionic filthy background story absolutely. even with a substantial holdback like 25k which we would have went for (asked for 50k), they could still have fucked us between destroying the house and forcing us to evict them and having their jew lawyers fight it out for months.
i eventually found all the court papers, and these kikes had basically been in and out of default on their loans and refinancings for the previous 15 years. seems like they mastered the game of stringing these banks along and then somehow negotiating settlements and getting new financing.
the house ended up sitting on the market indefinitely. word must have gotten around that they weren't trustworthy. and they had a final judgment of foreclosure and a scheduled bank sale like 1.5 years ago. somehow they came up with cash and now own it free and clear. it's all very odd. |
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Date: April 22nd, 2025 3:16 PM Author: rough-skinned soul-stirring circlehead there's a whole class of people that do this shit all the time. just like pro se nuisance plaintiffs that figured out the system well enough extract a bunch of settlements.
have a few friends that do foreclosures and other property lit and their stories are wild. eviction and foreclosures are extremely gameable. especially when you're often going up against a mom & pop landlord or a bank that isn't aggressively pursuing every foreclosure. tons of last minute delay tactics and emergency relief to extend the process while you pay $0. and the judges for these things are often very tenant-friendly dindus that aren't interested in managing their docket or getting your property back to you.
anyway yeah that was a very wise $1500 sunk cost to let go of. |
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Date: April 22nd, 2025 3:40 PM Author: Histrionic filthy background story * class of (((people)))
yeah, definitely a sunk cost, but it wasn't just the $1500. it was also really hard to pass up what in theory would have been a dream house, particularly in an incredible seller's market. but we never would have set foot in it.
the very nice mortgage VP at the bank (who had an incentive to close on it) told me i probably made one of the best financial decisions of my life by bailing. |
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Date: April 22nd, 2025 4:01 PM Author: rough-skinned soul-stirring circlehead i had to evict a shitty tenant and between lost rent and rehabilitating the place it was probably like $50k + i did all the legal work myself + the stress and frustration was worth that at least.
in fact the whole reason i accepted a shittier tenant than i would have ordinarily is because of a sunk cost i stupidly didn't give up. my prior tenants were buying a place and i was working with them to get a tenant in so they weren't paying rent+mortgage. the tenant i signed fell through and to save them the rent i diverged from my ordinary standards. i should have just forgone a month of rent if i felt like being a nice guy. |
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Date: April 22nd, 2025 3:30 PM Author: Laughsome pocket flask (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871476) |
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Date: April 22nd, 2025 2:04 PM Author: sepia well-lubricated private investor sanctuary Sell your old house first to get the money before putting down the down payment on the new house.
Put your shit into storage and move into a temp rental for a month or two until you close on the new house. That's what I did. |
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Date: April 22nd, 2025 2:23 PM Author: Histrionic filthy background story this retardedly assumes the seller wants to put up with a contingent sale and/or a long closing, and that you can sell quickly. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871229) |
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Date: April 22nd, 2025 2:30 PM Author: sepia well-lubricated private investor sanctuary I mean, don't even start the buying process until you are about to close on the sale of your house. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871249) |
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Date: April 22nd, 2025 2:34 PM Author: Histrionic filthy background story depending on the market and your pickiness, it could take months or longer to find the house of your dreams. if a family is upgrading from a starter home to a nicer home, they presumably have a better sense of what they want and more specific tastes and standards. which makes it harder to find something.
following this advice, you may be stuck in an unpleasant and overpriced short term furnished rental for months plus paying storage fees on your crap. |
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Date: April 22nd, 2025 2:37 PM Author: sepia well-lubricated private investor sanctuary I did this twice (with kids). Rented an AirBnB for a couple months both times. It was no big deal. Storage fees and the rental were cheaper than one mortgage, let alone two. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871278) |
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Date: April 22nd, 2025 2:43 PM Author: rough-skinned soul-stirring circlehead so is living in your car though.
if the airbnb is cheaper that means it must be inferior to your old house or you got some insane deal. you also have the added risk of sitting out of gains in the housing market, moving twice, not have access to your shit in storage, airbnb dude not renewing the lease, etc. etc. |
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Date: April 22nd, 2025 2:44 PM Author: Histrionic filthy background story again, depends on the market and your pickiness.
why the fuck did you move twice? unless u changed cities, moving that much is retarded. starter home --> forever home is standard. if u had to move twice in one city, u goofed |
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Date: April 22nd, 2025 2:48 PM Author: sepia well-lubricated private investor sanctuary MFH 1BR->2BR->"forever home".
Yeah, we probably didn't need to buy the 1BR looking back, but it was pre-kids. |
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Date: April 22nd, 2025 2:50 PM Author: Histrionic filthy background story buying a MFH 1BR as a couple is retarded. one thing if ur a single bro. did you make any money off it? (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871327) |
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Date: April 22nd, 2025 2:52 PM Author: sepia well-lubricated private investor sanctuary Actually buying it wasn't retarded, but selling it was. I should have held onto it and could have afforded it but just didn't feel like I could do it at the time. Would be worth ~2x now and rentable (condo).
Didn't make any money off it after costs. |
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Date: April 22nd, 2025 2:56 PM Author: rough-skinned soul-stirring circlehead so was not buying bitcoin in 2010. can't kick yourself over missing out on market gains. market could have crashed too and then you'd have been fucked.
i had a mansion with my ex-wife and when we split up i went on this minimalism kick and lived in a tiny apartment. in part because living in a 3500sqft house alone seemed retarded and wasteful. that was in 2017 and i bought again in 2021 so i wound up sitting out of a lot of gains. |
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Date: April 22nd, 2025 2:30 PM Author: rough-skinned soul-stirring circlehead and you're retardedly assuming a seller exists when OP explicitly said he's just curious i.e. is not ready to put an offer in on the second house.
ass is saying sell the first house first *so that there isn't* a contingent sale and/or long closing. |
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Date: April 22nd, 2025 2:07 PM Author: Razzle-dazzle stead mental disorder I just bought the second house with 5% down, so I had two mortgages for a minute. We then moved. Fixed up the first house, sold it, then after the sale and settlement, I took the proceeds from that sale to pay down the mortgage on the second house and I wrote the bank a letter to get them to cancel pmi and take off the escrow account. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871158) |
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Date: April 22nd, 2025 2:42 PM Author: arousing abusive menage How did you get 5% on the 2nd home? (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871293) |
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Date: April 22nd, 2025 2:43 PM Author: Razzle-dazzle stead mental disorder I moved it from money market to checking and wrote a check (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871297) |
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Date: April 22nd, 2025 2:48 PM Author: arousing abusive menage I meant how did the bank allow you to put just 5% down on a second home? (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871318) |
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Date: April 22nd, 2025 2:52 PM Author: rough-skinned soul-stirring circlehead you can get 100% financing on a primary residence even if it's your second home. any sort of financing is possible depending on your finances and risk profile. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871336) |
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Date: April 22nd, 2025 3:06 PM Author: Wonderful Brindle Roommate Hall It's very doable / easy, but retarded because, even excluding PMI, the rate is going to substantially shittier than if you put 20% down. There could be exceptions if a lender is really looking to quickly get money out on the streets. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871380) |
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Date: April 22nd, 2025 3:08 PM Author: Honey-headed Dashing Church Building You could also refi after paying down the other 15%. Anyone buying now will likely want to refi in a few years anyway. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871396) |
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Date: April 22nd, 2025 3:15 PM Author: Wonderful Brindle Roommate Hall Rates are shittier for refi than purchase loan.
If no other alternatives, this 5% down approach is a good option -- but better off using one of the above-referenced options (eg. 401k loan and/or portfolio loan). |
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Date: April 22nd, 2025 3:25 PM Author: Galvanic Center Alpha Should have dealt with this 401k loan shit earlier lol. Fuck three weeks? (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871451) |
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Date: April 22nd, 2025 5:32 PM Author: Honey-headed Dashing Church Building Agreed. Honestly, we've always had the 20% down except for one time when we just did 5% down and did the PMI removal. It was a flip so the minor rate difference was nbd. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871932) |
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Date: April 22nd, 2025 2:55 PM Author: Fear-inspiring Karate Lots of banks offer a buy before sale loan product where you borrow the down payment from the same place you're getting your mortgage from. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871347) |
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Date: April 22nd, 2025 3:07 PM Author: Wonderful Brindle Roommate Hall Then you're limited to using these banks for your loan and can't shop around for the best rate.
Not shopping around for best rate is retarded -- although sometimes it won't matter.
I've had 5 different mortgages with 5 different lenders / banks. Except for one, all random ass banks I'd never heard of who happened to be offering best rates at that particular point in time. |
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Date: April 23rd, 2025 12:16 PM Author: Fear-inspiring Karate I use my tiny credit union for everything because they're a half point better than the next closest rate I can find and they have multiple different BBS products. I'd wager anyone who is anyone offers one at this point. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48873789) |
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Date: April 22nd, 2025 4:03 PM Author: gaped dingle berry contingency sales clause. normally that would disadvantage you but the home market is so weak you are probably fine. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48871598) |
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Date: April 22nd, 2025 7:38 PM Author: Galvanic Center Alpha UPDATE: did an offer $5k (lol) above ask and a contingency that we sell ours first and they accepted. Let’s see how this goes. Shocked they accepted but apparently they need time too. This is going to be a disaster but finally getting out of my 2.9% mortgage shitbox I needed to hold on to. Let’s see how bad my SAHM wife fucks this up. Insane that this is a 3/4 million home if you saw it. Great school district though. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48872245) |
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Date: April 22nd, 2025 7:40 PM Author: Wonderful Brindle Roommate Hall If you have a 2.9% mortgage, you're retarded for not renting out your current place instead of selling. Just rent to a White family with a masculine husband and you'll never have to deal with any maintenance or tenant headaches. If it's on the low end of houses in a good school district, you'll rent it out easy AS FUCK in the next 3 months. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48872248) |
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Date: April 22nd, 2025 8:32 PM Author: submissive ruby indirect expression I'm not sure that is true anymore.
At least in my area, housing prices are up like 90% and rents are up like 30%.
The rent to buy ratio makes it worth it to sell your home. Plus if you get the cash out you reduce your new loan which is like a guranteed 6% return. |
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Date: April 22nd, 2025 9:12 PM Author: Histrionic filthy background story we gave up a 2.125% mortgage for 2x the SF. xo conventional wisdom "just do find the perfect prole white family that pays on time and doesnt fuck up your place" is easier said than done. (http://www.autoadmit.com/thread.php?thread_id=5714540&forum_id=2...id.#48872458) |
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Date: April 22nd, 2025 10:02 PM Author: submissive ruby indirect expression I find the bigger issue is that the lenders won't let you carry the two balances at the same time.
When you ask this question to the mortgage reps they really can't even answer the questions.
Wtf are they doing that they act like they've never seen someone who owns a house and wants to switch to another one |