“We have to sell before we buy.”
Can I buy my next home before I sell this one?
Often, yes. For eligible buyers, you can make an offer on the next home without waiting to sell this one, so your offer doesn’t depend on the sale. Your current mortgage can often be left out when you qualify, and your equity can help with the down payment. You keep paying your current mortgage until it sells, and fees apply.
Quick answers
“We have to sell first.”
You may not have to. Make the next offer first. Move once.
“We need one more bedroom.”
Buy the bigger home first. Then sell this one after you move.
“We don’t want to move twice.”
Buying first means one move, straight into the next home.
“Can we keep our agent?”
Yes. Your agent lists and sells this home.
Does it fit you?
3 quick questions. No signup. No credit pull.
What you'll need
- Your current mortgage statement
- Pay stubs or other proof of income
- Two months of bank statements
- A rough idea of your home’s value
How does it go, from offer to sale?
How does buying first work?
Your equity does the work. A short-term loan can put the equity in the home you own now toward the down payment on the next one. You make your offer without waiting on your sale.
Then you move once, and sell your current home after. You keep paying your current mortgage until it sells, and fees apply.
Why would a seller pick our offer?
An offer that depends on selling your home asks the seller to wait on your sale. An offer without that condition doesn’t. That can make yours easier to say yes to.
How is this different from a bridge loan or a home equity line?
Either one can also pay for the down payment on the next home. Here’s what’s different:
- Your agent sells your home on your timeline. That part is the same.
- You keep paying your current mortgage until it sells. The short-term loan’s interest is paid when it’s paid off, not each month. Fees apply.
- If your home hasn’t sold in time, the backup buyer steps in. A plain bridge loan or a home equity line has no backup buyer.
Who is this for?
Eligible homeowners who need the next home before this one sells. The next loan can be conventional, jumbo or a bank statement loan. VA is case by case. For example:
- Families who need one more bedroom
- People moving closer to work, school or family
- Anyone who doesn’t want to move twice
- Anyone who’d rather not rent in between
What does it cost?
There’s a one-time program fee. The short-term loan has its own rate and fees, paid when it’s paid off. Your loan officer gives you each cost and its APR in writing before you decide.
You keep paying your current mortgage until your home sells.
Questions people ask
What if my home doesn’t sell?
You have a backup buyer. If it hasn’t sold 180 days after you close on the new home, a partner company buys it at a price set up front, below market value. Your agent stays the listing agent, and you keep what it sells for above that price, after selling costs. If it sells for less, you don’t owe the difference.
Who sells my current home?
Your own agent, on your timeline. If the partner company buys it, your agent is still the listing agent.
Can we buy first if we’re self-employed?
Often, yes. The loan on your next home can be a bank statement loan. With that kind of loan, your current mortgage may count when you qualify, so ask about it early.
Where does the down payment come from?
Often from the equity in the home you own now. A short-term loan can put it toward the next purchase.
Do I pay two mortgages?
For a while, yes. You keep paying your current mortgage until it sells, and you start paying on the new home. The short-term loan’s interest is paid when it’s paid off, not monthly.
Does it work with an FHA loan?
No. FHA and USDA loans don’t work with it. Conventional, jumbo and bank statement loans do, and VA is case by case.
How much of my equity can I use?
It depends on your home’s value, what you owe and the new loan. Your loan officer works out the number with you.
Is this a bridge loan?
Partly. The short-term loan on your equity works like a bridge loan. The program also has a backup plan if your home hasn’t sold in time. Fees apply, and you keep paying your current mortgage until your home sells.
Does Home First Financial offer buy before you sell loans in California?
Yes. Home First Financial helps eligible homeowners across California buy the next home before selling this one. You keep paying your current mortgage until your home sells, and fees apply. Subject to qualification.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.
The fine print
For eligible buyers. A partner company agrees up front to buy the current home if it has not sold within 180 days of the new purchase closing, typically at 75 to 78 percent of market value, for a one-time fee starting at $2,500. If that happens, your agent relists the home, and you keep what it brings above that price, after selling costs. If it brings less, you don’t owe the difference. You must sell the current home. The short-term loan has its own rate and fees, paid when it is paid off, with no prepayment penalty. Your loan officer shows you its full terms and APR. Equity loans have their own terms. Any refinance requires approval and is not guaranteed. Credit scores from 640, or 680 for jumbo and bank statement loans. Loan amounts from $200,000 to $2.5 million. Leaving the current mortgage out when you qualify takes the backup agreement and a conventional loan; VA is case by case. Not available with FHA or USDA. Subject to qualification. Not a commitment to lend.
Also called: a bridge loan, or buying without a home-sale contingency.
Home First Financial is not affiliated with HUD, FHA, VA, USDA, CalHFA or any government agency.
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