A short-term loan that uses the equity in your current home to provide the down payment for the next one. It "bridges" the gap until your first home sells.
Most people use one of these three methods to make the transition smoother: buying a house while selling another
This is generally the "safer" financial route because you know exactly how much cash you have from your sale before committing to a new mortgage. A short-term loan that uses the equity in
You aren't juggling two mortgages, and you’re a more attractive buyer because your offer isn't "contingent" on a sale. You aren't juggling two mortgages, and you’re a
You put an offer on a new house that says, "I will buy this, but only if my current house sells by X date." In a competitive market, sellers often reject these offers in favor of "cleaner" ones.
You might need to move twice (into a short-term rental or with family), which adds cost and hassle.