3 Ways to Qualify for a New Home Without Selling Your Current One

Challenges arise when it comes to simultaneously looking for a new home while selling your existing one. Between qualification obstacles, contingency chaos, and timing issues that could leave your family with nowhere to live for an extended period of time, moving homes can seem like an impossible task to execute. 

If qualifying for a new home before selling your current one is becoming an obstacle, there are some viable alternatives worth exploring. 

1. Home Sale Assured

We are proud to offer a way for current homeowners to qualify for a mortgage on their new home without selling their current one. 

By working with Home Sale Assured, we provide our borrowers with a way to reduce the friction from the buying and selling process. Home Sale Assured simplifies the customer experience by offering the ability to secure the option, but not the obligation, to sell your home to them. 

Their Guaranteed Backup Contract (GBC) ensures your home remains under contract while providing you the opportunity to accept higher offers and cancel the GBC within 90 days after you close on your new home.  

2. Piggyback Loans

By combining a larger first mortgage and a smaller second one, piggyback loans can help make a home purchase more affordable. 

Here’s how it works: 

The second mortgage functions as part of your down payment. For example, if you make a 10% cash down payment and take out a 10% second mortgage, you’re effectively putting down 20%. This often leads to lower interest rates and allows you to avoid private mortgage insurance (PMI).

Often referred to as “80/10/10” loans, the first mortgage typically accounts for 80% of the home price, the second mortgage accounts for 10%, and the final 10% is reserved for the down payment.  


3. Bridge Loans

The term “bridge loan” refers to a suite of mortgage products used to “bridge the gap” between your current and future homes. 

At its core, a bridge loan is a short-term mortgage solution that allows borrowers to purchase a new home while still owning their existing one. 

The best bridge loan product for your needs will depend on several factors, including how quickly you need the funds, your financial profile, and the amount of equity in your current residence. 

Common solutions include traditional bridge loans, a home equity line of credit (HELOC), cross-collateralization, and opting for increased financing on your new residence. 

Final Remarks

Even in today’s market, it’s still possible to sell your old home and buy a new one without facing timing or qualification challenges. To best coordinate this transition, it’s important to become familiar with the differences between each alternative. Reach out to your trusted loan officer to determine if Home Sale Assured or any of the other previously mentioned programs are a good fit for you today.

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