I bought a new construction townhome 2 years ago in Florida, and while it was enough for me and my wife at the time, we now want to raise a family and there just isn’t enough room. I still owe $226k on the mortgage, but the estimate to sell is only $220k-$230k. If I end up selling at a loss just so we can get another home with more space, what are my options? I’m saving everything I can to cover the down payment (which I already have) and am almost at the amount needed for closing costs. We expect to need to move in 1-2 years. Am I able to roll over the balance or refinance it? I have a credit score of 805.
If you sell at a loss, you could consider a few options. One is to roll over the remaining balance into a new mortgage, but this often requires a lender willing to approve that kind of arrangement. You might also look into refinancing your current mortgage to get a better rate or lower payments, but that could still leave you with a balance to address when selling.
Given your strong credit score, you could qualify for better financing options. Another approach is to rent out your current home until the market improves, allowing you to potentially sell at a better price later.
Have you considered selling your home first and then looking for a new place? This way, you know exactly what you have to work with financially. Just make sure to have a plan for where you’ll stay in between.
It might also be worth consulting a real estate agent to see if there are options for a short sale if you’re facing a significant loss. They can provide insights into the current market dynamics.
You could also look into programs that assist with closing costs or down payments. Some lenders offer special financing for families looking to upsize, especially if you’re a first-time homebuyer.