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Can Cross Collateralization Work for You?

by on July 31, 2013

In this market of thin inventory and properties being snapped up swiftly with multiple bidders, one of the biggest challenges facing sellers with plenty of equity in their home, but who need to utilize that equity to make their next purchase (in other words make the purchase contingent upon the sale of their current home) face not being able to make the move because sellers are incredibly reluctant to accept this type of offer.

If that sounds like cross capitalization could work for you. Here’s an outline of the program.


• Buyers can buy a home without selling their current home

• Buyers can make a non contingent offer

• 100% financing available

• Current residence may be listed, but doesn’t have to be


Loan Program Options:6629099277 4dccfab495 300x300 Can Cross Collateralization Work for You?

• 3/1; 5/1 & 7/1 ARMS

• Interest Only available

Property Type Allowed


• Condo/Townhome

• 1 – 4 Unit Apartment


• Primary Residence

• Second Homes

• Investment properties


• When existing property is sold, lien will need to be paid down to maintain maximum Loan to Value. Loan payment will recast when balance is paid down

• Borrower must qualify for mortgage payment in all liens

• Two appraisals and two prelims required (one for each property)

• 3 day right of rescission

• Loan must be in first position on both properties

If you would like more details on this, here’s a link to my associate page and all my contact info

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Trivia about Mike King: I have a passion for playing soccer, going skiing and camping (all in the same weekend!).
 I was born and raised in Oxford, England but absolutely love California; I feel like I was born to live here.
 I love being a dad and drinking Earl Grey tea, although now I am very partial to a cup of Java also.
 I prefer to read true, or based-on-true, stories like “Alive” by Piers Paul Read or “Into thin Air” by Jon Krakauer.
 If you're curious to know more, catch up with me on Facebook or on Twitter.


Comments   |   Add Yours »

  1. nick segal says:

    Great post Mike. And oh so valuable.

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