Common challenges
Qualifying with two mortgage payments often fails DTI, and contingent offers lose bidding wars. The financing structure decides whether the move-up is possible.
Programs that fit
Investment property
Bridge Loans
A bridge loan is short-term (usually 6–24 months) investor financing secured by real estate that “bridges” you from a purchase to a sale or long-term refinance.
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Home loanHELOCs & Home Equity Loans
A HELOC (home equity line of credit) and a home equity loan both let you borrow against your home while keeping your current first mortgage.
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Home loanConventional Loans
A conventional loan is a mortgage not insured by the government that follows Fannie Mae or Freddie Mac guidelines.
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Tips before you apply
- A bridge loan funds the new down payment against your current home’s equity, then gets repaid at sale, compare its cost against a HELOC draw.
- Ask about recasting: buy with a larger down payment after the sale and reset the payment without refinancing.
- If you will keep the old home as a rental, a signed lease can exclude its payment from DTI on the new loan.
FAQ
What is the best mortgage for buying before selling?
It depends on your documentation and goal. The programs that most often fit are Bridge Loans, HELOCs & Home Equity Loans, Conventional Loans.