Selling your current home and buying your next one rarely line up perfectly. Here are the main ways people bridge the gap.
Contingent offer on the home you're buying
You make an offer on your next home contingent on selling your current one first. This protects you financially — you're not on the hook to close on a new home before your current one sells — but it makes your offer weaker in a competitive market, since sellers generally prefer offers without this contingency.
Bridge loan
A short-term loan secured by your current home's equity, used to cover the down payment and sometimes the full purchase of your next home before your current home sells. It's typically higher-cost than a standard mortgage and meant to be paid off quickly — usually within 6-12 months, once your current home sells. This can let you make a stronger, non-contingent offer on your next home, but it adds real cost and carries two loan payments simultaneously until your old home closes.
HELOC on your current home
If you have significant equity, a home equity line of credit against your current home can fund the down payment on your next home. Similar tradeoff to a bridge loan — more flexibility and a stronger offer, at the cost of carrying additional debt and payments until your current home sells.
Sell first, then buy
The lowest-risk path financially: sell your current home, then shop for your next one. The tradeoff is logistics — you may need temporary housing between the sale and your next purchase, and you lose the ability to make offers while you're still searching. Some sellers negotiate a rent-back period (staying in the home for a set number of days after closing as a renter) to buy themselves extra time.
Which option fits you
In a competitive seller's market, a contingent offer is a real handicap — bridge financing or a HELOC may be worth the added cost to compete. In a slower market, sell-first is often simpler and cheaper. Talk through your specific equity position, timeline, and risk tolerance with your agent and, for financing options, a loan officer.
Bridge loan and HELOC terms, rates, and availability vary significantly by lender. This is general information, not a specific loan offer — talk to a licensed loan officer about what's actually available to you.