DIYbanter - View Single Post - Short-term borrowing for down payment.

(Dipu) wrote:
This is one thing I am very clear about. Say we have an acceptable
offer from a buyer and we make an acceptable offer to a seller. Let us
say we are successful in getting the final closing synchronised to be
within few days. Both us and the buyer have about 2 weeks to take out
our loan contingencies, that means get a loan approved. At that point
we dont have the downpayment ready. Is any lender going to give me a
loan based on the fact that downpayment will be available at closing
time from the close of the sale of the current house? Is this
completely unheard of?

Sure. Happens all the time -- very few people have the resources to "move up"
in the housing market without using the proceeds of the sale of their current
abode as downpayment. Without that cash in hand, 'tho, you ain't gonna close
on the loan.