Buy Before You Sell — Lendia California
What Is Buy Before You Sell and How Does It Work?
Buy Before You Sell (BBYS) is a financing solution that allows California homeowners to purchase their next home before selling their current one — without contingencies, without temporary housing, and without the financial stress of carrying two mortgages on their own. The program bridges the gap between owning your current home and moving into a new one.
The Problem It Solves
In a competitive California real estate market, contingent offers — those that require the sale of your current home first — are frequently rejected by sellers. BBYS eliminates the contingency, allowing you to make a clean, competitive, non-contingent offer on your next home while you still own your current one.
How It Works
Depending on the specific program structure, BBYS works in one of two ways:
- Equity advance model: A BBYS provider advances you a portion of your current home’s equity before it sells. You use those funds for your down payment on the new home. After you move, you list and sell your current home and settle up with the provider.
- Bridge loan model: A short-term bridge loan is secured against your current home to fund the down payment on the new one. The bridge is repaid when your current home sells.
The Timeline
Most BBYS programs allow 6 to 12 months to sell your departing residence after closing on the new purchase. This gives you time to move, prepare the home for market, and sell without pressure.
The process, step by step
- Review your equity. We look at your home’s likely value, your current mortgage balance and how much equity could support an advance or bridge.
- Qualify for the new mortgage. Your income, credit and assets are reviewed for the purchase loan, which is separate from the bridge component.
- Structure the transition. We decide whether an equity advance or a bridge loan fits your scenario and confirm how the departing home’s payment is treated.
- Write a non-contingent offer. With funding lined up, your agent can present a cleaner offer.
- Close, move, then sell. You list the old home within the program’s window and repay the advance or bridge from the sale proceeds at escrow.
Equity advance and bridge loan side by side
| Point to compare | Equity advance | Bridge loan |
|---|---|---|
| What it is | A portion of your equity advanced before the sale | A short-term loan secured against the current home |
| Repaid when | Your current home sells | Your current home sells |
| Departing payment in qualifying | May be excluded in some structures | You may need to qualify carrying both payments, unless exclusion is documented |
| Cost to expect | A program fee | Interest on the outstanding balance |
Which one applies depends on the program we match you to.
What to prepare before you start house hunting
- A recent mortgage statement for your current home
- Your recent income documents and two months of asset statements
- A conversation with a listing agent about timing and likely value
- A target price range for the new home that works under the program’s qualifying method
Frequently asked questions
Do I have to list my home before I make an offer on the new one?
Not necessarily, but a signed listing agreement can matter for how the departing payment is treated in qualifying. We tell you at the start which documents a given structure needs and when.
Is the mortgage on the new home different from a normal purchase loan?
The mortgage itself is a regular purchase loan, such as conventional, jumbo, FHA or VA. The bridge or advance is a separate instrument that sits on the departing home.
How much equity should I have?
Equity is central to how much can be advanced or bridged, and the requirement varies by program and borrower profile; we confirm the current guidelines when we review your scenario. A quick review of your mortgage balance and likely sale price is the best starting point.
Related guides
- Who qualifies for Buy Before You Sell
- What happens to the departing residence
- What the program costs
- Loan types that work with Buy Before You Sell
- Do I need to sell first?
- What Is Buy Before You Sell and How Does It Work?
- Who Qualifies?
- BBYS vs. BYOC — What Is the Difference?
- How Is the Departing Residence Handled?
- Do I Need to Sell First?
- How Is Income Qualified with Two Properties?
- What Loan Types Are Compatible?
- How Long Do I Have to Sell?
- What Happens If My Home Doesn’t Sell in Time?
- What Are the Fees and Costs?
- Is It Available for Investment Properties?
- How Does It Affect My DTI?
- Is It a Good Fit for California’s Market?