New mortgage with equity

Unless you are a Veteran with VA loan benefits, or otherwise qualify for a down payment assistance loan, I know of no zero down loans. Pre COVID, there were some lenders that would provide a "Bridge Loan" secured with the equity in the old home to provide the funds you would need to complete the purchase on the new home. In this scenario, the lender for the new home would require sufficient income to service the new loan, the payment on the old loan plus the payment on the Bridge-loan in addition to the other debts included in the debt servicing. That is something that is pretty hard to do for most folks, which is why most sell first, then buy. If you have enough cash to put the minimal down, I have helped folks do a 95% first mortgage using their own funds, and then when the old place sells, pay down the principal balance of the new loan, have the loan re-casted to reduce the monthly payment. If this is an option, make sure you discuss re-casting with your Mortgage Broker. Not all loans or lenders will consider a re-casting. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We got you covered. NEXA Mortgage is licensed in 46 states ~ www.ApplyYes.com 480-889-9000.