Obstacle 01 · Money after the purchase
Could the equity come over later?
You may be able to buy with the cash you have now, sell your current home later, and apply sale proceeds to the new mortgage. A recast may then lower its required principal-and-interest payment.
The order can change.
Buy with less down. Sell the old home. Apply the proceeds. Request a recast on an eligible loan.
A few things matter.
- Have enough verified cash for the initial purchase and a reserve cushion.
- Confirm recast eligibility with the selected loan and servicer before relying on it.
- Qualify for—and feel comfortable carrying—the temporary larger mortgage.
- Check how mortgage insurance, recast requirements and sale proceeds affect the plan.