Move-Up Buyers
Selling one house to buy the next. Timing is everything — and everything is timing.
01
What This Is
Move-up buyers are homeowners selling their current house to buy a bigger, better, or better-located home. The complexity isn’t the mortgage — it’s the timing. You have equity locked in the current home that you probably need for the down payment on the next one.
Selling first means you might be homeless. Buying first means carrying two mortgages. The right financing structure solves this.
02
Loan Programs
The loan on your next home. Standard programs — same as any purchase, but timed around your current home.
Conventional Loan
- Simple difference
- Fannie/Freddie loan for move-up buyers with strong credit and 5–20% down.
- Who it applies to
- Buyers with credit 620+, income and DTI that support the new payment (with or without the old home sold).
- Why it matters
- Best rates, cleanest structure, most flexibility.
- Unique details
- If old home hasn’t sold, both mortgages count against DTI unless you have a signed lease with tenant income.
Jumbo Loan
- Simple difference
- For move-up homes above the conforming limit (typically $806,500+ in most areas).
- Who it applies to
- Buyers moving into higher price points, credit 700+, strong reserves.
- Why it matters
- Competitive rates on luxury purchases, common for move-up.
- Unique details
- Requires 10–20% down and higher reserve requirements (6–12 months of both mortgages).
FHA Loan
- Simple difference
- Government-backed loan with flexible credit and low down payment.
- Who it applies to
- Move-up buyers with credit 580+ who need low down or have DTI concerns.
- Why it matters
- Only 3.5% down, easier qualification if your equity from sale isn’t liquid yet.
- Unique details
- Requires mortgage insurance for life of loan. Less common for move-up but valid tool.
VA Loan (if military/veteran)
- Simple difference
- 0% down loan for eligible veterans buying their next home.
- Who it applies to
- Anyone with unused or restored VA entitlement.
- Why it matters
- No down payment, no PMI, competitive rates on the new home.
- Unique details
- Entitlement can be reused after selling the previous VA-financed home. New COE may be needed.
USDA Loan (rural areas)
- Simple difference
- 0% down loan for properties in USDA-eligible rural areas.
- Who it applies to
- Move-up buyers relocating to rural/suburban zones under income limits.
- Why it matters
- True zero-down if the property qualifies.
- Unique details
- Income cap based on household. Property must be USDA-designated.
Move-up buyers are homeowners selling their current house to buy a bigger, better, or better-located home. The complexity isn’t the mortgage — it’s the timing. You have equity locked in the current home that you probably need for the down payment on the next one.
Selling first means you might be homeless. Buying first means carrying two mortgages. The right financing structure solves this.
The loan on your next home. Standard programs — same as any purchase, but timed around your current home.
Conventional Loan
- Simple difference
- Fannie/Freddie loan for move-up buyers with strong credit and 5–20% down.
- Who it applies to
- Buyers with credit 620+, income and DTI that support the new payment (with or without the old home sold).
- Why it matters
- Best rates, cleanest structure, most flexibility.
- Unique details
- If old home hasn’t sold, both mortgages count against DTI unless you have a signed lease with tenant income.
Jumbo Loan
- Simple difference
- For move-up homes above the conforming limit (typically $806,500+ in most areas).
- Who it applies to
- Buyers moving into higher price points, credit 700+, strong reserves.
- Why it matters
- Competitive rates on luxury purchases, common for move-up.
- Unique details
- Requires 10–20% down and higher reserve requirements (6–12 months of both mortgages).
FHA Loan
- Simple difference
- Government-backed loan with flexible credit and low down payment.
- Who it applies to
- Move-up buyers with credit 580+ who need low down or have DTI concerns.
- Why it matters
- Only 3.5% down, easier qualification if your equity from sale isn’t liquid yet.
- Unique details
- Requires mortgage insurance for life of loan. Less common for move-up but valid tool.
VA Loan (if military/veteran)
- Simple difference
- 0% down loan for eligible veterans buying their next home.
- Who it applies to
- Anyone with unused or restored VA entitlement.
- Why it matters
- No down payment, no PMI, competitive rates on the new home.
- Unique details
- Entitlement can be reused after selling the previous VA-financed home. New COE may be needed.
USDA Loan (rural areas)
- Simple difference
- 0% down loan for properties in USDA-eligible rural areas.
- Who it applies to
- Move-up buyers relocating to rural/suburban zones under income limits.
- Why it matters
- True zero-down if the property qualifies.
- Unique details
- Income cap based on household. Property must be USDA-designated.
Selling one to buy the next means solving a timing puzzle. These are the tools that make it possible.
Bridge Loan
- Simple difference
- Short-term loan against your current home’s equity, used to fund the down payment on the next.
- Who it applies to
- Homeowners with significant equity who can’t sync sale and purchase timing.
- Why it matters
- Lets you buy the new home before selling the old — no double-move, no rental in between.
- Unique details
- 6–12 month term, interest-only, higher rate than a mortgage. Pays off when current home sells.
Contingent Offer Financing
- Simple difference
- Standard mortgage on the new home with an offer written contingent on current home selling.
- Who it applies to
- Move-up buyers in slower markets where sellers accept contingencies.
- Why it matters
- No bridge loan cost, no double mortgage payment.
- Unique details
- Weaker offer in hot markets. Seller can bump you if a non-contingent offer comes in.
Home Equity Line (HELOC) for Down Payment
- Simple difference
- Pull equity from current home to fund next home’s down payment.
- Who it applies to
- Homeowners with 20%+ equity and strong income to briefly carry both payments.
- Why it matters
- Cheaper than a bridge loan, more flexible than a cash-out refi.
- Unique details
- HELOC must be in place before selling. Paid off from sale proceeds automatically.
Cash-Out Refinance (current home)
- Simple difference
- Refinance current home for more than its balance; use the cash for the next home’s down payment.
- Who it applies to
- Homeowners with strong equity and no plans to sell the current home immediately (or planning to rent it).
- Why it matters
- Access equity without selling, keep the current home as a rental if desired.
- Unique details
- New refi becomes the mortgage on the current home. Only makes sense in certain scenarios.
Sell First, Buy Second
- Simple difference
- Sell the current home first, live somewhere temporarily, then buy the next.
- Who it applies to
- Buyers with time flexibility and low tolerance for double-mortgage risk.
- Why it matters
- Cleanest financially — no bridge, no contingency, no double payment.
- Unique details
- Requires interim housing arrangement (extended-stay, family, short-term rental).
- 01Strategy call. Look at current home equity, target new home price, and your timing constraints.
- 02Pick your financing structure (bridge, contingent, HELOC, or straight purchase).
- 03Pre-approval on the new home. Get you ready to make offers.
- 04List and/or make offers. Depending on structure, either sell first or buy first.
- 05Coordinate closings. If back-to-back, we time the funds transfer precisely.
- 06Bridge takeout (if applicable). When old home sells, bridge loan pays off automatically.
- Photo ID
- Last 2 years W-2s + last 2 pay stubs
- Last 2 months bank statements
- Last 2 years tax returns
- Mortgage statement on current home
- Estimated payoff on current mortgage
- Current home’s estimated market value (comps or appraisal if available)
- Homeowners insurance on current home
- If bridge or HELOC: recent appraisal or AVM on current home
| Program | Min Credit | Min Down | Max DTI | Notes |
|---|---|---|---|---|
| Conventional purchase | 620 | 5–20% | 50% | Standard move-up |
| Jumbo | 700+ | 10–20% | 43% | Loan amounts above $806,500 (2025 conforming) |
| Bridge Loan | 680 | Secured by current home | Case by case | 6–12 month term |
| HELOC (current home) | 680 | Combined 80% LTV | — | Draw as needed |
| Contingent Offer | Same as purchase program | Same | Same | Depends on seller acceptance |
Different situations call for different lender strengths. Through my network, I can access programs that specialize in:
- Bridge loans that close in 10–14 days
- HELOC on current home while it’s actively listed (many lenders decline this)
- Same-lender bridge + permanent purchase (streamlined closing)
- Rental income letter to remove current mortgage from DTI (if you’re renting it out temporarily)
- Delayed financing for cash buyers (buy with cash, refi within 6 months at purchase-price LTV)
- Recasting programs (dump proceeds from sale into new loan to reduce payment mid-term)
The mortgage is the easy part — the timing is where I earn my keep. Let’s map your move so you’re never stuck between two homes.