Can I consolidate an existing mortgage and a new purchase mortgage into one?

Question in total republished:

“I owe less then my home in Michigan is worth and now want to buy a home in North Carolina. Can I get a consolidation loan combining my old house AND a new house in order to allow more time to sell the old one? Having two separate mortgage payments is too costly by the month and I’m looking for the least monthly cost as possible. Bridge loans seem way too costly also. Any help would be appreciated. Thank you.”

Nope. That type of loan simply doesn’t exist in the residential market. One lender would have to cross-collateralize both homes and should the borrower go into default, they would have to start two foreclosure actions. So can see why in residential real estate it is too cumbersome…and for the most part unnecessary.

These type of loans exist in the commercial real estate world. Many times the lender will ask for 3 homes, 2 cars, and a boat…whatever it takes to feel secure.

You solution is sell the Michigan home. Or don’t buy the North Carolina home. One or the other. If you must buy in N.C. due to a job move or something…then sell the Michigan home at a loss. Cover the loss (hopefully a small one) with a short-term personal loan. Paying off a short term loan is cheaper than carrying two mortgage payments.

The only other solution I can think of if you must move…is to rent the Michigan home. If you have friends or family in Michigan who can keep an eye on it, if it doesn’t have an adjustable rate mortgage, and if you can rent for more than the mortgage, then go for it. It is a way to solve the problem. The rent covers the mortgage…and you are left just paying the N.C. house payment.

Good Luck!