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From the spotlight collection · Temporary fixed home equity loan strategy
Use a fixed home equity loan for the next down payment, then repay it when you sell.
Get Pre-ApprovedSubject to eligibility, program availability and lender underwriting.
Use a fixed home equity loan for the next down payment, then repay it when you sell.
You’ve found your next home, but the money for its down payment is tied up in the home you still own. For eligible borrowers, a fixed-rate home equity loan may provide those purchase funds before your current home sells.
The strategy is straightforward: borrow a lump sum against your current home, use loan funds approved for this use toward the next purchase, and pay off the home equity loan from the current home’s sale proceeds. Your existing first mortgage stays in place until that home sells.
Confirm sale plans, listing restrictions and approved purchase use.
Review debt, payments, fees and early-payoff terms.
Use the current home’s sale proceeds to repay the loan.
You’ve found your next home, but the money for its down payment is tied up in the home you still own. For eligible borrowers, a fixed-rate home equity loan may provide those purchase funds before your current home sells.
The strategy is straightforward: borrow a lump sum against your current home, use loan funds approved for this use toward the next purchase, and pay off the home equity loan from the current home’s sale proceeds. Your existing first mortgage stays in place until that home sells.
For the right borrower and program, this may offer a simpler route than separate bridge financing. I’ll check whether it can mean fewer documents, faster funding or lower cost for your purchase, comparing the rate, fees and early-payoff terms over the time you expect to borrow.
During the overlap, you may need to carry your current mortgage, the home equity loan and the new mortgage. A delayed sale extends those costs. Some programs exclude homes currently or recently listed for sale. The selected program must permit your intended sale and purchase plan, and the new mortgage lender must accept the funds and additional debt. Your current home secures the loan; failure to repay can lead to foreclosure.
Before arranging bridge financing, send me your purchase and sale timeline. I’ll check whether a fixed home equity loan fits.
Get Pre-Approved