How to Finance Your Next Home While Waiting for Your Sale to Close on Long Island

Selling one home while buying another can be tricky, especially when your funds are tied up in your current property. If your sale hasn’t closed yet but you’ve found the perfect next home, you may need short-term financial solutions to bridge the gap. Eric Berman REALTOR explains how Long Island homeowners can finance their next purchase without unnecessary stress.

Understanding the Challenge

Many sellers face a common issue: they need the equity from their current home to buy the next one. But since most sales don’t close simultaneously, that money isn’t available right away.

This timing gap can create pressure, especially in competitive Long Island markets where the best homes move quickly.

Option 1: Bridge Loans

A bridge loan provides short-term financing that uses your current home’s equity to fund the purchase of your next one.

How It Works:

• The lender gives you access to a portion of your home’s value before it sells.

• You use that money as a down payment on your next property.

• Once your current home closes, you repay the bridge loan.

Pros:

• Lets you buy before selling.

• Avoids temporary housing or storage costs.

Cons:

• Typically has higher interest rates.

• Requires strong credit and stable income.

Eric partners with trusted local lenders who specialize in bridge loans tailored to Long Island homeowners.

Option 2: Home Equity Line of Credit (HELOC)

If you have significant equity and your home isn’t yet on the market, a HELOC can be a flexible way to fund your purchase.

How It Works:

• You borrow against your home’s equity while still living there.

• The funds can be used toward a down payment, moving costs, or closing expenses.

Pros:

• Lower rates than bridge loans.

• Interest is paid only on what you borrow.

Cons:

• Must be secured before listing your home.

• Can be risky if your sale is delayed.

Option 3: Rent-Back Agreement

If your buyer is flexible, you may be able to rent your home after closing for a short time while completing your next purchase.

Advantages:

• Gives you extra time to close on your new home.

• Avoids the cost and hassle of temporary housing.

Eric Berman REALTOR often negotiates rent-back terms that provide sellers with up to 30–60 days of additional occupancy after closing.

Option 4: Extended Closing or Contingency Clauses

You can also structure your sale contract to better align with your buying timeline.

Examples:

• Extended closing: Pushes your sale closing date further out.

• Home sale contingency: Makes your purchase dependent on selling your current home.

These tools work best when managed by an experienced agent who understands how to balance both sides of the deal.

Option 5: Compass Concierge

If you need to maximize your home’s value before selling, Compass Concierge can help fund pre-sale improvements — like painting, staging, or landscaping — with no upfront costs. This helps you sell faster and at a higher price, freeing up equity sooner for your next purchase.

Finding the Right Strategy

The best financing approach depends on your goals, financial profile, and comfort level. Some clients combine multiple options — for example, a HELOC and a rent-back — to keep flexibility high and risk low.

Eric Berman REALTOR helps Long Island homeowners design seamless transition plans backed by expert financial and market guidance.

FAQs

1. What’s the difference between a bridge loan and a HELOC?
A bridge loan is temporary financing between closings, while a HELOC lets you tap into your equity over time. To explore both, contact Eric Berman REALTOR for lender recommendations.

2. Can I get a bridge loan if my current home isn’t sold yet?
Yes, as long as you have sufficient equity and income to qualify. Reach out to Eric Berman REALTOR to discuss lenders offering flexible bridge programs.

3. How long can I stay in my home after selling?
With a rent-back agreement, most sellers can remain for 30–60 days post-closing. Eric can help you negotiate terms that align with your next purchase — get in touch here.

4. Should I apply for a HELOC before listing my home?
Yes. Once your home hits the market, most lenders won’t approve a new HELOC. Contact Eric Berman REALTOR to discuss timing strategies.

5. How do I decide which option is best for me?
Each situation is unique — your finances, equity, and goals all matter. For tailored guidance, contact Eric Berman REALTOR to create a personalized transition plan.