I have a friend who's been out of work for last few months. She's looking to sell her townhome, and downsize to a condo to improve her cashflow (by cashing out the capital gain). She's looking at selling her house (worth ~$400k) with about $120k of equity, and buy another place for about ($220-250k) and put down ~$60k until she finds a new job. Her borrowing amount would go from $230k to about 160-190k.
She called her mortgage company (didn't mention about her losing her job) asking about the process, and they told her that she needs to re-qualify even if she's porting down.
Her question is that now that she's unemployed, how can she re-qualify for a mortgage?
I'm trying to help her with all possible solutions/alternatives:
- Keep living in townhome
- Sell and then rent a place
- Sell, buy, convert to rental mortgage and rent out a room?
- ???
TIA!
She called her mortgage company (didn't mention about her losing her job) asking about the process, and they told her that she needs to re-qualify even if she's porting down.
Her question is that now that she's unemployed, how can she re-qualify for a mortgage?
I'm trying to help her with all possible solutions/alternatives:
- Keep living in townhome
- Sell and then rent a place
- Sell, buy, convert to rental mortgage and rent out a room?
- ???
TIA!