HELOC or mortgage?

I have to sell my home and downsize. For several good reasons I am going to purchase new home before I sell this one (its paid for). I am approved for a mortgage but If I got a heloc that would give me cash to make a cash offer as the retirement community I want to move to sells quickly. My biggest fear is that my house won’t sell easily, its a nice home on acreage in a country setting. Not sure if COVID will cause a big depression and nothing will sell? Would love some input on most sensible option. Can’t do a bridge loan in case house does take a long time to sell. I could use most of my savings and pay for it that way but scared to do that. thnx

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we just almost did this, were in contract on a home a week before SIP, we were stressed about being able to sell our home due to COVID for what we thought and carrying the new mortgage + old mortgage + HELOC payment so we ended up backing out and deciding when we eventually buy again to just do contingent offer, it was too much stress.

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not really the same issue as yours so not sure how to provide guidance there. sorry!

Some houses may take a bit longer to close. If you can comfortably pay the HELOC for 6 months while waiting for the old house to sell HELOC may be the better faster way to go.

Houses are selling. Check your local market. Get a read out on MLS sales in the last month.
Realtors say there is a shortage of sellers not buyers. Price it 10% below market. Aggressively advertise and put on the market. If no offers in 2 weeks, then you know it will take a long time to sell. If you get offers go for a long close to help with your move.
Make the offer on your new house contingent on the sale of your current one. A good realtor can smooth things out for you.


thnx for your input, appreciate it :slight_smile:

thnx for your input, unfortunately these little retirement homes go very quickly so a contingency won’t work :frowning:

Tie it up with a 21 day inspection contingency. And long close. Put your house on the market as soon as accepted, could work. Get a savvy agent. The key is to get your house sold even if you have to store your furniture and wait for the perfect retirement house deal. Don’t get stuck with two houses.

problem with putting my house on market is COVID, my dr suggested its not wise to have people coming into my home during this virus :frowning:

You can listing with good photos and virtual tour etc. Still market is doing well and there is no issue for you to sell in any way. Better to list it attractive price so that multiple bids will come.

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You need to find the best realtor you can get. Visiting realtors With buyers have to sign a form and follow protocol and wear masks. Only two buyers at a time, no children. It can be done. Offers are being made site unseen. Get Matterport pictures.


It depends on where your house is. Nationally purchase mortgage application is running 18% higher than the same week last year. So in most of the country, houses are selling very well.

In Eldorado County there are open houses again. Will be in the BA soon.