# Buy first, sell second!

By Shea Sherman (@sheasherman) · Published 2026-09-17

Canonical: https://voce.com/@sheasherman/buy-first-sell-second-aae3xc

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# 🏡 Want to Buy Your Next Home Before Selling Your Current One?

### You may not have to wait for your existing home to sell.

For many homeowners, the biggest obstacle to buying their next home isn’t finding the right property—it’s qualifying for the new mortgage while still carrying the payment on their current home.

**What if you could potentially buy your next home without counting your existing home’s PITI payment against your debt-to-income ratio?**

There are **Non-QM financing options** designed to help qualified borrowers make that move.

## Buy First. Sell Second.

This strategy can be especially appealing for homeowners who have built significant equity but don't want to make their next purchase contingent on selling their current home.

Under this program, **a sales contract on your departing residence is not required.**

Instead, the existing home must either already be listed for sale or be scheduled to be listed **within 90 days of closing**.

That means you may be able to secure your next home first—then focus on selling your current home on your own timeline.

### Here's what the program requires:

**🏠 Minimum 20% equity**  
The existing home must have at least 20% equity after accounting for all outstanding liens.

**📋 Equity verification**  
Equity can be verified through an exterior or full appraisal.

**💰 Reserve requirements**  
Depending on the expected marketing time for the departing property:

-   **12 months of reserves** when marketing time is 6 months or less
    
-   **24 months of reserves** when marketing time is more than 6 months
    

**📉 Existing mortgage payment removed from DTI**  
When the requirements are met, the payment (PITI) on the departing residence can be removed from the borrower's debt-to-income calculation.

## Who Could This Help?

This could be an option for homeowners who:

-   Have substantial equity in their current home
    
-   Want to purchase their next home before selling
    
-   Don't want their purchase dependent on a sales contract
    
-   Are relocating or moving into a larger home
    
-   Want more flexibility when transitioning between properties
    

And because this is a **Non-QM program**, there are multiple ways to document income.

### Available Non-QM options may include:

-   **Bank Statement Loans**
    
-   **One-Year Full Documentation**
    
-   **Asset Qualifier Loans**
    
-   **1099 Income Loans**
    
-   **Profit & Loss Statement Only**
    
-   **Combination Income Programs** for borrowers with multiple income sources
    

## The Bottom Line

Selling your current home before buying isn't the only way to make a move.

If you have enough equity and meet the program's reserve and property requirements, **you may be able to purchase your next home without having your current home's PITI counted in your DTI.**

That could give you the flexibility to **buy first, then sell**—without waiting for a sales contract on your existing home.

**Thinking about making a move but worried your current mortgage will prevent you from qualifying? Let's look at your numbers and see what options may be available.**