You may be able to use the equity in your current home to buy your next one before it sells.
Federal Hill Mortgage can help qualified homeowners access funds, strengthen their purchase offer, and in qualifying scenarios, potentially remove the departing home payment from the new mortgage qualification.
For qualified borrowers purchasing a new primary residence. Program availability and terms are subject to change.
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Many homeowners are ready for their next move but run into one or both of the same barriers:
This bridge loan solution may address both barriers in one coordinated plan.
This is more than access to cash. It is a way to coordinate the financing, qualification, and timing of two home transactions.
Access eligible equity from your current home for a down payment, closing costs, debt payoff, moving expenses, or approved home preparation costs.
In qualifying situations, you may be able to submit an offer without a home sale contingency and compete before your current home is sold.
Certain program structures may allow the departing home payment to be excluded from your debt-to-income calculation.
Buy your next primary home, move in, and then prepare and list your current home without temporary housing or back-to-back moving days.
Federal Hill Mortgage coordinates the bridge loan with the financing for your next home so the pieces work together.
We look at your current home, available equity, credit, location, intended purchase, and timeline.
If eligible, we coordinate the bridge loan with the new purchase mortgage and identify approved uses for the funds.
Close on your next primary residence and move before your current home is sold.
List and sell the departing home. Proceeds repay the bridge loan at closing. If the home has not sold by the end of the initial term, extension requirements or other repayment options may apply.
This solution is designed for homeowners moving from one primary residence to another who have meaningful equity but need flexibility before their current home sells.
Not sure whether you fit every point? Ask us anyway. A loan officer can review the complete scenario and explain the available paths.
If you are working with a client who has equity but cannot move forward until their current home sells, this solution may open a path. Send us the scenario and we will take an honest look at whether it could work for their situation.
Or call us at 1 (800) 551-9198 to talk through a scenario directly.
Several financing tools can unlock home equity, but they do not all solve the same buy-before-sell problem.
| Feature | This bridge loan solution | Traditional HELOC or equity loan |
|---|---|---|
| Access eligible equity before selling | Potentially | Potentially |
| May be available after the home is listed | Yes, subject to program rules | Often restricted |
| Potential removal of departing PITI from DTI | Available in qualifying structures | Typically no |
| No monthly payment required during initial term | Yes, subject to loan terms | Typically no |
| Designed around a buy-before-sell transaction | Yes | No |
Every transaction is different. These answers explain the general structure, then our team can evaluate the details that determine eligibility.
It is short-term financing secured by your current home that may let you access eligible equity before that home sells. The funds can help cover approved costs connected with buying and moving into your next primary residence.
Potentially. The program is designed to help qualified homeowners purchase their next primary residence before selling their departing home. Listing and sale timing requirements apply, so it is best to review your plan before making an offer.
In certain qualifying scenarios, yes. The departing home mortgage may be paid off through the bridge loan structure, which may allow that payment to be excluded from the debt-to-income calculation for the new mortgage. This is not automatic and depends on the full transaction and underwriting requirements.
Eligible uses may include a down payment on the next home, closing costs, payoff of certain debts, moving expenses, approved repairs or preparation for the departing home, and the payoff of existing liens when required by the program.
The program is structured as a single-payment loan, so no monthly bridge loan payments are required during the initial six-month term. The balance, program fees, closing costs, and any other amounts due are generally repaid when the current home sells or when the loan otherwise becomes due.
A useful starting point is approximately 35% equity remaining in the current home and at least one qualifying borrower with a credit score of 620 or higher. Property, title, location, loan amount, combined loan-to-value, and other requirements also apply.
A short conversation can help determine whether your equity, property, purchase plan, and timing fit this bridge loan solution.
