Unlocking Home Equity: Buy Before You Sell

March 3, 2025

Unlocking Home Equity: Buy Before You Sell

Buy Before You Sell

A New Solution for HomeownerWith homeowners sitting on record-high levels of equity, many who are ready to move are looking for ways to do so without selling first. At The Mortgage Project, LLC, we’re excited to introduce a new product that enables qualified homebuyers to buy before they sell—offering flexibility and financial ease during the transition.

How It Works

This unique financing option allows homeowners to tap into their equity for cash to close while also helping them qualify without contingencies. In many cases, we can even omit the payment on the departing residence from debt-to-income calculations, making it easier to qualify for the new home loan. To take advantage of this feature, homeowners simply need to:

Document at least 30% equity in their current home
List their property for sale before closing on the new home purchase

More Flexibility, Less Stress

Unlike traditional bridge loans that require repayment within six months, this product offers a 15-year balloon term, giving homeowners ample time to find the right buyer without pressure to sell quickly. Plus, the cash proceeds can be used for more than just a down payment—adding even more financial flexibility.

Bonus: No prepayment penalties! When you sell your current home, you can pay off the loan early without extra costs.

A Better Selling Experience

With this solution, you can move into your new home before selling your current one, allowing your realtor to stage the vacant property and schedule showings without disruptions. This often leads to a higher sales price and a smoother selling process.