Want to Buy Your Next Home but Need to Sell Your Current One?

The most straightforward strategy. You sell your existing home, find out what your sale actually nets, and use that equity toward your next purchase.

A well-planned timeline takes much of the risk out of this approach. That means pricing and preparing the listing carefully, getting pre-approved for the next purchase before you list, shortlisting neighborhoods in advance, and lining up a rent-back or short-term rental before you need one.

You make an offer on the next home that includes a negotiated contingency tied to the sale of your current home.

The exact terms are negotiated. A contingency might require you to list your home, enter escrow, or close the sale by agreed deadlines. Some sellers accept these terms only with a provision that lets them keep marketing their home and ask you to remove the contingency, or step aside, if a stronger offer arrives. This is often called a kick-out or continued-marketing provision.

The protection you have depends entirely on the written agreement. Cancellation rights and deposit treatment are not automatic and should be reviewed carefully before you sign.

You market and sell your current home while negotiating a seller contingency for finding a suitable replacement property.

The sale is structured around locating your next home. Seller and buyer negotiate the deadlines and the rights each side has if no replacement is found. The contingency must be clearly documented, buyer acceptance is not guaranteed, and a poorly structured agreement can lead to disputes.

A bridge loan is short-term financing that may let eligible homeowners access equity in their current home before it sells, often to fund the down payment on the next one. It is typically repaid when the existing home sells.

Lenders look at your equity and collateral, and you still owe your existing mortgage while the bridge loan is outstanding. Bridge loans usually carry higher interest rates than standard mortgages, plus origination fees and other costs.

Fannie Mae accepts bridge loan funds for a purchase under specified conditions, including that the bridge loan isn't cross-collateralized against the new home and that the lender documents your ability to carry the new home, the current home, the bridge loan, and your other obligations.

If the sale takes longer than expected or closes at a lower price, repayment can become harder and costlier. Bridge financing is never a guarantee of approval.

Some homeowners can tap existing equity through a home equity line of credit (HELOC) or other asset-secured borrowing, then use those funds toward the next purchase.

Things to weigh include how much equity lenders will let you borrow against, variable interest rates, draw periods, the added monthly payment, and whether your existing lender allows a second lien. Timing matters too: many lenders won't open a HELOC on a home that is already listed for sale, so it usually needs to be in place before you list.

Using equity before your sale is complete means you are borrowing against a price you haven't yet achieved. Fannie Mae treats funds borrowed against an asset as an acceptable source for down payment and closing costs, but the payments still count in qualification.

Securities-backed lending, which borrows against an investment portfolio, is a specialized option for some qualified borrowers. Market declines can trigger maintenance calls or forced sales of the pledged investments, so it needs careful review with a financial advisor. It isn't suitable for everyone, and this guide doesn't recommend speculative or unsuitable borrowing.

Some homeowners buy a new primary residence and convert their current home into a rental. You keep the property, keep its existing mortgage terms, collect rent, and keep any long-term appreciation.

The financial and underwriting details are critical, and the income a lender lets you count is different from the cash the property actually produces.

Some borrowers qualify for the new home's mortgage before selling their existing one. After the old home sells, they put a large share of the proceeds toward the new loan's principal.

If the loan and servicer allow it, a mortgage recast re-amortizes the remaining balance and lowers the required monthly principal-and-interest payment. A recast typically keeps your existing interest rate and loan term. It may involve a fee and a minimum principal reduction, and not all loan types or servicers allow it. Government-backed loans often don't.

You must qualify for the original, larger mortgage first. This approach can work well for homeowners with enough income and cash to qualify before their old home sells.

A seller can negotiate to stay in the sold home for a period after closing, often called a rent-back, or coordinate other possession and closing dates so the move happens once.

Details matter. Buyers' lenders often limit how long a seller can stay, because the buyer must move in within a set time to keep owner-occupied financing. Insurance, liability, security deposits and the written agreement all need attention. The buyer also has to be flexible enough to accept the arrangement.

Some companies offer institutional buy-before-you-sell programs that help you buy first, for example by temporarily purchasing the new home or guaranteeing a sale price on your current one. Fees, availability, lender requirements and terms vary considerably, so compare total cost carefully.