Financing Options for Buying Before You Sell
1. Bridge Loans
A bridge loan is short-term financing secured by your current home’s equity. You can access funds for a down payment or full purchase, then repay the loan when your home sells.
Pros:
Allows you to make a strong, non-contingent offer on your next home, often competing with cash buyers
Flexibility to act quickly in fast-moving markets
Cons:Higher interest rates and closing costs versus standard mortgages
Repayment is typically due in a lump sum once your house sells, so accurate timing is key
You may temporarily carry two mortgage payments
2. Home Equity Line of Credit (HELOC)
A HELOC lets you borrow against your current home’s equity with more flexible terms than a bridge loan.
Pros:
Often lower rates and longer repayment window
Interest-only payments during the draw period
Can repay and reuse funds as needed
Cons:Your current home must not be listed for sale when you apply
Variable interest rates mean payments can increase
Your home is collateral; missed payments could risk foreclosure
3. “Buy Before You Sell” Programs
Specialized programs (like Homeward, Knock, and local lender offerings) provide short-term financing and support so you can purchase your new home before listing the old one.
Pros:
Non-contingent offers backed by lender partnerships
No double moves or double mortgage payments for a set period (often 3–6 months)
Can qualify for a new home loan without your old mortgage counted against your debt-to-income ratio
Cons:Program-specific fees or qualifying requirements
Terms and solutions vary by provider
4. Cash-Out Refinance or 401(k)/Investment Line of Credit
Pull equity by refinancing your mortgage or tapping investments for short-term cash.
Pros:
May provide substantial liquidity
Cons:Could affect your long-term investments or retirement planning
Refinance rate depends on current interest environment
Why Talk to the Shaina McAndrews Team First?
Every financing path has intricacies, timing constraints, and market-specific nuances. Shaina McAndrews works closely with experienced local lenders and specialty program providers, matching clients with the best option, prepping documents, and ensuring the process is fast, affordable, and fits your move.
We connect you with local experts for bridge loans, HELOCs, and “buy before you sell” programs, guiding you through paperwork, offer planning, and contingency management.
Ready to buy before you sell? Your first step is a no-pressure consult with Shaina McAndrews, so your transition—finances included—is as smooth as possible. If someone you care about is planning a move, we’re honored to help them too.
