Using a HELOC to buy your next home before you sell

Some people find their next home before the current one sells. A home equity line lets you draw on the equity in the home you own now. You can put that toward the next purchase.

Timing is the key

Most lenders will not open a line on a home that is already listed for sale. Some also look back at recent months, to see if the home was listed. So the order matters.

The usual path looks like this:

1. Open the line while the home is not yet listed.
2. Use the draw toward the next home.
3. List and sell the current home.
4. Pay the line back from the sale.

If your home is already on the market, tell us on the form. We tell you what is possible by text and email.

What to plan for

• A line is a loan. You repay what you draw, even if the sale takes longer than you hoped.
• Your current mortgage stays in place. The line sits next to it.
• Lenders look at your whole picture. That includes the new home's mortgage, if you take one.

Questions to ask before you apply

• How soon before listing should I apply?
• What if my home does not sell as fast as I plan?
• How will the line and a new mortgage fit together?

Questions people ask

My home is already on the market. Can I still get a line?

Usually not. Tell us anyway; we tell you what is possible in your case by text and email.

What if the sale takes longer than I planned?

You keep repaying the line until the home sells. Plan for that, and ask how the line and a new mortgage fit together before you apply.

Do I need to tell the lender I plan to sell?

Yes. Lenders ask about listing plans, and your answers must be accurate.