Bridge loans, equity loans, and creative strategies
For many homeowners, the biggest obstacle to buying a new home isn’t finding the right property—it’s figuring out how to purchase before selling their current one. The thought of juggling two homes at once can feel overwhelming, but the good news is this: you don’t have to sell first.
There are several ways to tap into your existing home’s equity, free up cash, and make a strong offer on your next home without rushing your sale. Here’s how buyers do it every day.
1. Bridge Loans: A Temporary Funding Solution
A bridge loan is exactly what it sounds like—a short-term loan that helps you “bridge” the gap between buying and selling.
With a bridge loan, you can:
- Access your current home’s equity immediately
- Make a non-contingent offer on a new home
- Repay the loan once your home sells
This is ideal for homeowners who want to avoid contingent offers in competitive markets.
2. Home Equity Loans or HELOCs
If you have enough equity in your current home, you may be able to borrow against it before selling.
Two common options:
Home Equity Loan
A lump-sum loan with a fixed rate.
HELOC (Home Equity Line of Credit)
A flexible line of credit you can draw from as needed.
These funds can be used for your down payment and closing costs—giving you the freedom to shop without rushing your listing.
3. Using a Cash-Out Refinance Before You Move
If rates and timelines make sense, refinancing your current home to pull out cash can be a smart strategy. This helps you:
- Access equity
- Lock in a new payment structure
- Strengthen your purchasing power
Many homeowners use cash-out funds to buy their next home while keeping their existing loan in place until they’re ready to sell.
4. Buy Contingent—If the Market Allows
In some markets, sellers are open to accepting an offer contingent upon the sale of your current home. It’s not always ideal in competitive areas, but it works well when inventory is higher, or when your home is likely to sell quickly.
5. Leaseback Agreements After You Sell
A post-closing leaseback lets you sell your home but stay in it for 30–60 days while you close on your new one. This gives you:
- Flexibility
- Zero overlap in housing
- Time to move without pressure
Think of it as renting your home back from the new buyer while you finalize your next purchase.
How Affinity Home Lending Helps Homeowners Buy Before Selling
We help you evaluate:
- Bridge financing options
- HELOC or equity loan eligibility
- Cash-out refi pros and cons
- Market conditions for contingent offers
- How to structure your finances for a smooth transition
You don’t have to rush your sale—or your next purchase. There’s a strategy for every situation.