Buy before you sell · · Mike Certo, NMLS #260555
Can I buy a house if mine is listed but not sold?
Often, yes, even before you have a buyer. If you've built up enough equity in your current Arizona home and have some savings set aside, we can leave that home's payment out of your qualification once you list it (or commit to listing it), so you can buy the next home now.
How the listed path works
When your current home is on the market, your offer to buy the next one shouldn't have to depend on yours selling first. If you carry enough equity, we can leave your current home's payment out of your qualification the moment you list it, or sign a commitment to list it soon. Your income no longer has to cover both payments on paper, so you qualify for the new home and move on your own schedule.
How much equity you need
This path is equity-driven. Underwriting commonly looks for roughly 20% to 30% of your current home's value as documented equity, confirmed by an appraisal. Some programs sit closer to 20%; others want 25% to 30%. If you've owned your Arizona home for a few years and prices have risen, there's a good chance you're already there. We look at what you've paid down plus current value and tell you honestly whether your numbers clear the bar.
Reserves and what else counts
Carrying two homes, even briefly, usually means showing some reserves, money set aside after closing. How much depends on the loan and your profile, and strong equity in the home you're selling can lower the requirement. We give you the reserve target up front so there are no surprises late in the process.
What if it doesn't sell fast?
Here's the relief: because you've already closed on the new home, a slow sale doesn't put the new house at risk. We plan the fallback from day one, whether that's renting the home out or pairing with our $2,500 backup contract, so you're never stuck.
Find out if your equity clears the bar
Send us your current home value, your remaining balance, and your target purchase price. We'll tell you whether listing it is enough to qualify for the next one.
Talk to MikeRelated
- All three ways to qualify without selling first
- Buy before your home sale closes
- Rent it out and buy the next one
FAQ
Can I qualify for a new home if my old house is listed but not sold?
Often yes. If your current home is listed (or you commit to listing it) and you carry enough equity plus required reserves, the current payment can be left out of your qualification even before you have a buyer. How much equity depends on the loan program.
How much equity do I need to exclude my current payment?
Underwriting commonly looks for roughly 20% to 30% documented equity, verified by an appraisal, to support excluding the payment on the listed path. Some programs sit near 20%; others closer to 25% to 30%. We tell you where your home lands.
Do I need a buyer before I can qualify?
No. On the equity path, listing the home or signing a commitment to list it can be enough, so you don't have to wait for an offer to come in before you qualify for the next home.
How many months of reserves will I need?
It varies by loan type and how much equity you have. Carrying two homes can require additional months of reserves, and strong documented equity in the home you're selling can reduce the requirement. We give you the target up front.
What if my home doesn't sell quickly?
You've already closed on the new home, so you're not at risk of losing it. We plan a fallback from the start, such as renting the home out or pairing with our backup contract, so a slow sale doesn't become a crisis.