Move First… Then Sell Later
Two ways to use your current home’s equity as the down payment on the next home. One is a traditional bridge loan. The other is a true $0-cost equity option for borrowers who qualify.
The “why Realtors care” version
These programs can help your client write a stronger offer, avoid awkward timing, and reduce “sell first” stress — while still keeping underwriting clean.
- Program 1: 12 months with no payment on the bridge loan.
- Program 1: Bridge payment not counted in qualifying debt.
- Program 2:$0 fees (no appraisal, no title, no closing costs).
In plain English: how “Move First” works Equity becomes the down payment — so the buyer can purchase now and sell later.
Estimate usable equity
We determine how much equity can be accessed and what price range that supports.
Choose Program 1 or 2
Program 1: traditional bridge loan. Program 2: $0-cost option if buyer qualifies with extra payment.
Buy the new home
Use the equity funds as down payment/closing funds (structure varies by program).
Sell the current home
After the sale, the equity position is cleaned up per program terms. Timing pressure drops dramatically.
Two programs — same goal, different qualification path
Both programs let buyers use existing home equity for the new purchase. The difference is whether they need the equity payment excluded from qualifying (Program 1) or they can qualify with it included (Program 2).
Program 1: Bridge Loan (2-loan structure)
Best when the buyer cannot qualify if the equity payment is counted — or wants 12 months with no payment on the bridge loan.
Buyers can purchase the next home using their equity as the down payment without carrying a payment for 12 months, giving plenty of time to list, market, and close the current home.
This is a two-loan setup (new purchase loan + bridge loan). Both are fully underwritten with standard documentation. Standard transaction costs apply (appraisals, title/escrow, lender fees, etc.).
Program 2: True $0-Cost Equity Option
Best when the buyer can qualify even with the additional payment tied to the equity used for the new purchase.
If your buyer qualifies with the additional payment, this option can provide equity funds with zero fees: no appraisal, no closing costs, no title company fees — $0 out of pocket for that equity piece.
The buyer’s income/DTI must support the added payment. If that’s tight, Program 1 is usually the better fit.
Quick comparison (Realtor cheat sheet)
FAQ (the questions Realtors will ask)
Do they have to sell their current home first?
No. That’s the whole point — they can use equity as the down payment and purchase first, then sell on a normal timeline.
Is Program 1 really “no payment for 12 months”?
Yes — the bridge loan payment is deferred for 12 months, giving the borrower time to list and close without carrying that payment.
What does “bridge payment not counted in qualifying debt” mean?
It means underwriting doesn’t include that monthly obligation in the borrower’s DTI calculation — which can make the difference between qualifying and not qualifying for the new home.
How can Program 2 be truly $0 cost?
Program 2 is designed so the equity component has no appraisal, no title/escrow, and no closing costs — literally $0 in fees. The tradeoff is the borrower must qualify with the added payment.
How fast can we know which option fits?
Usually very quickly. If you can provide property value, current mortgage balance, estimated purchase price, and a basic income/debt snapshot, we can point you to the right program.
Want me to sanity-check a client scenario?
Send the basics (value, mortgage balance, target price, and rough income/debts). I’ll tell you which program fits and why.
Replace this box with your Zoho Form embed code (or a simple contact form). Suggested fields:
- Realtor name + phone/email
- Current home value & mortgage balance
- New home target price
- Any timing notes (listing date / close date)
Icon Mortgage — Company NMLS #880625 • Charles Busch — NMLS #1525602 • Equal Housing Lender
