How to buy a home when you already own one

You can source your down payment from savings, home sale proceeds, a pre-arranged home equity line of credit (HELOC), or a short-term bridge loan.

Carrying two mortgages at once counts toward a lender’s debt-to-income (DTI) ratio for underwriting.

If you convert your primary home into a rental property, most lenders allow you to use 75% of rental income (backed by a signed lease) to offset your existing mortgage when qualifying for a new loan.

A leaseback agreement allows you to sell your home, receive cash proceeds on closing day, and remain in the home as a tenant for up to 60 days.

Holding two properties simultaneously usually requires higher credit scores and cash reserves.

Consult a mortgage expert to calculate your exact borrowing limits under different scenarios before placing offers or listing your property on the market.