Client Success Story: Achieving the Dream Home in Palo Alto
🏡 The Situation
- Clients: A couple earning $450K annually
- Current Home: Valued at $1.8M in the Bay Area
- Mortgage: $800K balance with $6K monthly payments
- Goal: Purchase a $3M dream home in Palo Alto
⚠️ The Challenge
Despite their strong income, the couple faced a common hurdle:
- Their debt-to-income (DTI) ratio was too high to qualify for a new mortgage while still keeping existing home.
- They are not willing to sell their current home first, instead, they want to BUY first.
💡 The Solution: “Buy Without Sell” Program
- Equity Access: Utilized a Home Equity Line of Credit (HELOC) on their existing property to fund the down payment for the new home, avoid using “bridge loan” with high point and fees
- DTI Adjustment: Structured the financing to exclude the existing home’s expenses from the DTI calculation, enabling qualification for a $2.3M loan without selling their current home.
✅ The Outcome
- Successfully purchased their new Palo Alto home without the pressure of an immediate sale.
- Since 2019, the property’s value has appreciated by over $1M, showcasing the benefits of strategic financial planning.
📌 Conclusion
Our “Buy Without Sell” program offers a practical solution for homeowners aiming to upgrade new home first without selling current one. By leveraging existing equity and tailoring financing structures, clients can confidently navigate competitive markets and achieve their real estate goals.
Lee Zhang
NMLS: 196970 DRE 01438631
Cell 408-315-9470
