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We got a HELOC on the property that we were selling, for enough money to pay the 20% down in order to avoid PMI on the house that we were building. Why take the home off the market when you do this (as was suggested)? I don't know, we did not, it stayed on the market. All the bank asks is that when you sell your home, the first and second entities to be paid are the HELOC and the original mortgage. If your home sells for more than you expect (giving you more money than will pay off both the mort. and the HELOC), most banks will let you recast (adjust your principal owed by putting proceeds from your house into the new mortgage) for a small fee. It's something to check into.

The Drake
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