What Loan Types Are Compatible with Buy Before You Sell?

The Buy Before You Sell program is a financing bridge or equity advance — it is not a loan type itself. The actual mortgage used to purchase your new home can be a variety of conventional loan products, depending on the property and your qualifications.

Compatible Loan Types for the New Purchase

Conventional loans — Fannie Mae and Freddie Mac eligible purchases, including high-balance conforming loans for California’s higher-cost counties
Jumbo loans — for loan amounts above the conforming limit, common in Southern California markets
FHA loans — available in some BBYS structures, though the equity advance mechanics may interact differently with FHA guidelines
VA loans — eligible veterans may be able to use VA financing for the new purchase in a BBYS structure

Non-QM Compatibility

Some BBYS providers also work with Non-QM mortgage products, which is useful for self-employed borrowers or investors who need alternative income documentation for the new purchase loan.

The Bridge Component

The BBYS bridge or equity advance itself is a separate, short-term instrument secured by the departing residence. It is not the same as the new purchase mortgage and is repaid from the proceeds of the departing residence sale.

Flexible Loan OptionsThe BBYS structure can work alongside conventional, jumbo, FHA, and VA financing for the new purchase. Lendia will match you with the right loan type based on your scenario.

Matching your situation to a loan type

Purchase price within conforming limits: a conventional loan is often the starting point. The 2026 one-unit baseline is $832,750, and high-cost California counties go up to $1,249,125. See loan limits by county for your county.
Loan amount above the county limit: a jumbo loan, which usually calls for larger down payments, stronger credit and cash reserves.
Eligible veteran or service member: VA financing allows up to 100% financing for eligible borrowers, with no monthly mortgage insurance.
Self-employed or irregular income: Non-QM options may document income through bank statements or similar methods.
FHA: owner-occupied only, with 3.5% down at a 580 score. Because the advance mechanics can interact with FHA guidelines, we check this structure early.

A worked example (illustrative example, not a quote)

Say you plan to buy a $1,000,000 home and put 20% down. The down payment is $200,000, so the new mortgage is $800,000 ($1,000,000 − $200,000). That is under the $832,750 conforming baseline, so it would not be a jumbo loan in any California county. Raise the price to $1,200,000 with 20% down and the loan becomes $960,000. That is above the baseline, so it stays conforming only in a county whose limit is higher. The county matters, which is why we check it first.

Why the down payment source needs a paper trail

If you use an equity advance as your down payment, the purchase lender will want to see where the funds came from and how they are secured. We confirm how the advance is documented before you write an offer, so there is no scramble during underwriting.

Frequently asked questions

Can I pair Buy Before You Sell with a Non-QM mortgage?

Some providers work with Non-QM purchase loans, which can help self-employed borrowers and investors who need alternative income documentation. Availability varies, so we confirm it for your scenario.

Does the bridge change my interest rate on the new mortgage?

The new purchase mortgage is priced on its own: loan type, down payment, credit profile and occupancy. The bridge or advance has its own terms and is repaid when the old home sells.

Is jumbo common in this situation?

In higher-priced Southern California markets, yes, because the new purchase often exceeds the conforming limit. Jumbo lenders typically want solid reserves, which we look at together with your equity position.