Most homebuyers face the same problem: the home they want to buy is available now, but the cash they need is locked in the home they haven’t sold yet. A bridge loan solves that timing gap by letting you borrow against your existing home’s equity before the sale closes, so you can purchase the next property without waiting.
LendSure Home Loans offers the BBYS Buy Before You Sell with No Monthly Payments program, with no monthly payments for up to 12 months and no debt-to-income impact on your new home purchase. If you want to explore what your existing equity could support, our team can walk through the numbers with you.
What Is a Bridge Loan for a Home Purchase?
A bridge loan is short-term financing secured by your current home’s equity, providing funds before your existing home sells. The loan is repaid when your current property closes.
As Fannie Mae’s Selling Guide explains, bridge loan proceeds can be used toward a new home purchase when the bridge is secured by the departing residence rather than cross-collateralized against the new property. The permanent mortgage on the new home remains a separate financing obligation.
How the Money Moves
The sequence matters for understanding what a bridge loan does and doesn’t do:
- Your existing home holds equity, but the sale has not closed
- The BBYS Bridge loan lets you borrow against that equity before the sale
- New home purchase — bridge proceeds help fund the purchase
- Your existing home sells — sale proceeds repay the BBYS loan and any remaining liens
The BBYS bridge loan is temporary financing. It does not replace your new home’s mortgage; it bridges the gap between your purchase and your sale.
How Much Can You Borrow With a BBYS Loan?
The amount available depends on your home’s current value, your existing mortgage balance, and the lender’s maximum combined loan-to-value (CLTV) ratio. The CFPB explains that home equity financing adds an additional lien against a property, and the amount available depends on existing debt, property value, and lender requirements.
A simplified illustration* of how gross borrowing capacity is estimated:
| Example | |
| Current home value | $500,000 |
| Existing mortgage balance | $250,000 |
| Illustrative maximum CLTV | 80% |
| Maximum total secured debt | $400,000 |
| Potential gross bridge proceeds | $150,000 |
*This is illustrative only. The 80% CLTV is a hypothetical example, not a verified LendSure program limit. Actual proceeds depend on underwriting, appraisal, lien structure, and available equity after fees and finance charges.
What Happens to Your Equity After the Home Sells?
Borrowing $150,000 against your home reduces the net equity you receive at closing. Sale proceeds must repay both the original mortgage and the bridge financing, plus real estate commissions, closing costs, and other liens. Calculate expected net proceeds before assuming how much cash will remain.
The BBYS Buy Before You Sell Program: How LendSure Structures It
LendSure’s BBYS Buy Before You Sell with No Monthly Payments program is structured to remove two of the biggest obstacles buyers face when purchasing before selling.
No monthly payments for up to 12 months. Interest accrues during the bridge period, but no out-of-pocket monthly payment is required. This preserves cash flow during the transition.
No debt-to-income ratio impact on the new purchase. Because no monthly payment is required, the bridge loan does not increase the debt-to-income ratio used to qualify for your new home’s mortgage. That is one of the most significant structural advantages for buyers carrying an existing mortgage.
Can You Qualify While Carrying Two Mortgages?
This is the question most buyers worry about, and it is where loan structure matters most. Under standard financing, a lender evaluates all your debt obligations when qualifying you for a new mortgage. Fannie Mae’s liability guidelines require lenders to consider housing payments, existing real estate debt, and other recurring obligations when assessing repayment capacity.
Because LendSure’s BOOST Bridge loan carries no required monthly payment, it does not add a payment obligation that the new mortgage lender must count against your debt-to-income ratio. The existing mortgage on your current home may still factor into underwriting depending on the new loan’s structure, so confirming qualification before making a purchase offer is the right sequence.
What Does a BBYS Bridge Loan Cost?
Bridge loans carry costs beyond the interest rate. The CFPB notes that APR incorporates financing charges beyond the stated rate, including origination points and qualifying lender fees. For short-term financing, those upfront costs matter more relative to total cost than on a 30-year mortgage.
Bridge Loan vs. HELOC vs. Selling First
A bridge loan is not the only way to access home equity before selling. The CFPB distinguishes home equity loans (lump sum, typically fixed rate) from HELOCs (revolving access to equity, often variable rate). Each option has a different fit depending on your timeline, cash flow, and how much equity you need to access.
| Option | Main Advantage | Main Consideration |
| BBYS Buy Before You Sell | No monthly payments; no debt-to-income ratio impact on new purchase | Short repayment horizon; interest accrues |
| HELOC | Flexible draw access to available equity | Often variable rate; requires ongoing payments |
| Home equity loan | Lump sum at a fixed rate | Adds a monthly payment that counts against debt-to-income ratio |
| Sell first | No borrowing against unsold home | May require temporary housing or delay purchase |
| Sale contingency offer | Protects buyer if home doesn’t sell | Seller may reject in competitive markets |
For buyers who need to make a non-contingent offer and cannot afford to carry two mortgage payments simultaneously, LendSure’s BBYS program is often the most practical fit.
How to Buy a Home Before Selling Your Current One
The sequence below assumes you are using a bridge loan to access existing equity before your sale closes.
- Calculate available equity. Estimate your home’s current value, subtract the existing mortgage balance, and apply a realistic CLTV to see what gross proceeds might look like.
- Confirm bridge loan eligibility. Discuss your equity position, credit profile, and timeline with a lender before making an offer on the new home.
- Arrange financing for the new home. Secure pre-approval for the new home’s permanent mortgage separately from the bridge loan.
- Purchase the new property. Use bridge proceeds toward the purchase. No monthly bridge payment is required during the BOOST term.
- List and sell your current home. Repay the bridge loan from sale proceeds at closing.
Ready to Explore Your Options?
Contact our team to discuss your equity position and purchase timeline before you make an offer.
Frequently Asked Questions
Can I buy a house before selling my current one?
Yes. LendSure’s BBYS Buy Before You Sell with No Monthly Payments program carries no monthly payments for up to 12 months and does not impact the debt-to-income ratio used to qualify for your new home’s mortgage. Repayment is due when your current home sells or at the end of the loan term, whichever comes first.
How much equity do I need to qualify for a bridge loan?
The amount available depends on your home’s current value, your existing mortgage balance, and the lender’s maximum CLTV. As a general concept, available borrowing capacity equals the home’s value multiplied by the maximum CLTV, minus the existing mortgage balance. The CFPB explains that existing debt and lender requirements both affect how much equity is accessible.
Will I have to make two mortgage payments?
With LendSure’s BBYS program, no monthly payment is required on the financing for up to 12 months. The deferred structure means it does not add a payment that increases your debt-to-income ratio when qualifying for the new mortgage. Your existing home’s mortgage may still factor into underwriting depending on your new loan’s structure.
Is a bridge loan better than a HELOC for buying before selling?
It depends on your goals. A HELOC provides flexible, revolving access to equity but typically carries a variable rate and requires ongoing monthly payments that affect your debt-to-income ratio. A bridge loan structured like LendSure’s BBYS program provides a lump sum, defers payments, and does not impact your debt-to-income ratio on the new purchase. The CFPB compares home equity loans and HELOCs in detail for buyers weighing their options.
Are bridge loans underwritten differently from standard mortgages?
Yes. CFPB Regulation Z provides that certain temporary bridge loans with terms of 12 months or less are exempt from specific federal Ability-to-Repay and Qualified Mortgage provisions. That does not mean bridge lenders skip credit, equity, and repayment assessment — it means the regulatory framework can differ from a long-term mortgage. Review loan terms carefully, particularly the maturity date, interest calculation method, and repayment conditions.
