Texas Bridge Loans & Buy Before You Sell Programs
You may not have to sell your current home before buying the next one. Guarantee Mortgage compares Texas bridge-loan and buy-before-you-sell options that can help eligible homeowners access equity, remove a home-sale contingency, or solve the debt-to-income problem created by carrying the current mortgage.
The right solution depends on the actual bottleneck.
A bridge loan is only one way to solve the buy-before-you-sell problem. We compare the structure around what you need—not just the product name.
“My down payment is in my current house.”
An equity-unlock or bridge structure may provide eligible funds for the next-home purchase before the departing home sells.
See equity-access options“I have cash, but two mortgage payments hurt my qualification.”
A DTI-focused buy-before-you-sell structure may be more efficient than borrowing equity you do not need.
See DTI options“I don't want my offer tied to the sale of my current home.”
Programs with a qualifying backup purchase agreement can help eligible buyers make an offer without a home-sale contingency.
How the contingency piece works“I want to move first and sell second.”
Buy-before-you-sell financing can separate the moving timeline from the listing timeline so the transactions do not have to close back-to-back.
See the processWhat is a bridge loan?
A residential bridge loan is short-term financing designed to help a homeowner purchase a new primary residence before the current home has sold. Depending on the program, the structure can provide cash for the next-home purchase, support a non-home-sale-contingent offer, or help address the qualifying impact of the departing residence.
Modern buy-before-you-sell programs can go beyond a traditional bridge loan. Guarantee Mortgage can evaluate options such as the Knock Bridge Loan and HomeLight Buy Before You Sell, then coordinate the bridge or backup-offer structure with the long-term mortgage on your new home.
How buying before selling can work in Texas
The exact sequence varies by provider and borrower, but the transaction usually follows the same five-part path.
Review the current home
We look at estimated value, existing mortgage and lien balances, property eligibility, credit, and how much cash or DTI relief you actually need.
Select the structure
We compare an equity-access bridge, a backup-offer program, or a DTI-only solution rather than automatically borrowing the maximum available.
Shop for the next home
Once the applicable approval and backup-purchase documentation are in place, the buyer may be able to make an offer without a home-sale contingency.
Close and move
The new-home mortgage closes. Eligible bridge or equity-unlock funds are delivered as required by the program and closing instructions.
Sell the old home
The departing home is listed and sold. Sale proceeds are then used to satisfy the existing liens, bridge balance, program costs, and other closing charges.
When your down payment is tied up in the home you already own
This is the classic bridge-loan problem: you have substantial equity, but that equity will not become cash until the current home closes.
A bridge or Equity Unlock can make a portion of eligible equity available earlier so you can fund all or part of the down payment and closing strategy on the next residence. The amount available depends on the property's value, current liens, borrower profile, program limits, and the structure selected.
We do not recommend borrowing more simply because it is available. The better approach is to identify the cash amount needed for the new purchase and compare the cost of each program against other realistic options.
What if you have the down payment but can't qualify with two mortgages?
Sometimes equity is not the problem at all. The borrower already has enough cash to buy, but the current home's PITIA pushes the debt-to-income ratio too high.
HomeLight's DTI Drop is specifically designed for this scenario. Instead of taking an Equity Unlock for the new down payment, the borrower uses their own eligible cash while the buy-before-you-sell structure supplies the backup-offer documentation needed for the pending-sale treatment, subject to the new mortgage lender's underwriting.
Current HomeLight partner materials describe DTI Drop at 1% of the departing home's final sale price, with a $5,000 minimum. Fees are subject to change and the signed program agreement controls.
Why this can matter for conventional underwriting
Fannie Mae and Freddie Mac guidelines include circumstances where the monthly payment on a current primary residence pending sale may be excluded from the new-loan DTI when the required sale-contract and financing-contingency documentation is in the file.
The exact treatment depends on the purchase loan, the documentation provided, the automated/manual underwriting result, and lender overlays. A backup offer does not automatically guarantee DTI exclusion on every mortgage.
Can a bridge loan help remove a home-sale contingency?
Potentially. The strongest buy-before-you-sell programs pair financing with a qualifying backup purchase arrangement on the departing home. That can give an eligible buyer a path to make the next-home offer without conditioning the purchase on the old home selling first.
Knock Purchase Offer
The Texas Knock Bridge Loan is paired with a Knock Purchase Offer on qualifying properties. Knock's stated goal is still to have the homeowner sell to a third-party buyer on the open market; the purchase offer provides the backup.
HomeLight Home Sale Guarantee
HomeLight's Buy Before You Sell program provides a backup purchase contract as part of the program structure. The homeowner and agent continue marketing the home, with the backup purchase available if the home remains unsold through the applicable program period.
Your long-term mortgage stays separate
The bridge or backup-offer program solves the transition between homes. Guarantee Mortgage still compares the eligible conventional, jumbo, or other long-term mortgage options for the new residence.
Knock vs. HomeLight for Texas buy-before-you-sell financing
Neither program is automatically better. The right fit depends on credit, property type, needed equity, existing liens, how quickly you expect to sell, and whether your actual problem is cash or DTI.
| Feature | Knock Bridge Loan — Texas | HomeLight Buy Before You Sell |
|---|---|---|
| Main use | Access equity and pair the transaction with a Knock Purchase Offer. | Access equity and/or use a backup-offer structure to buy before selling. |
| Minimum credit | 680 minimum mid credit score for all borrowers under the Texas guide. | 620 minimum credit score under the current approval matrix. |
| Maximum bridge / equity amount | Up to $500,000 in Texas. | Up to $2 million Equity Unlock, subject to approval. |
| Stated bridge interest | 0% interest for 180 days; other fees and costs apply. | 0% bridge-loan interest under current partner materials; program and transaction costs apply. |
| Published program cost | 2.25% contract fee based on the departing property's estimated list price, plus bridge/closing costs. | Current materials show a program fee based on final sale price; 2.4% is shown in current partner materials, subject to change and regional rules. |
| DTI-only option | Texas guide says Bridge Loan Plus is not available. | DTI Drop may fit borrowers who use their own cash and mainly need the departing mortgage liability addressed; current published fee is 1% with a $5,000 minimum. |
| Eligible departing property basics | Qualifying primary residence; single-family homes and townhomes. Condos are not eligible under the Texas guide. | Departing and incoming residences must be owner occupied. Property-type, size, acreage, condition, lien, and market-time restrictions apply. |
| Home prep / moving | Up to $35,000 may be used for eligible non-structural home prep, including up to $5,000 for moving expenses. | Equity Unlock is primarily structured around the purchase and approved program uses; exact eligible uses are confirmed on the approval. |
| If the old home has not sold | Knock's current FAQ describes a six-month window backed by the Knock Purchase Offer on qualifying properties. | HomeLight provides a backup purchase structure after the applicable program sale period; the exact active deadline is stated in the current agreement. |
Program terms shown here are a consumer summary of current partner/public materials and can change without notice. Final eligibility, fees, property requirements, available equity, deadlines, and transaction structure are determined by the provider's current approval and signed agreements.
Knock Bridge Loan requirements and costs in Texas
Texas eligibility highlights
How Knock's cost is structured
Knock's Texas guide lists a 2.25% contract fee based on the departing property's estimated list price and estimates approximately $1,850 of closing costs, with the actual amount depending on transaction and state-specific factors.
The bridge loan charges 0% interest for 180 days, but 0% interest does not mean the transaction is free. The bridge is a single-payment loan and the applicable fees affect the APR and final payoff.
Eligible proceeds may also include up to $35,000 for non-structural home preparation and maintenance, including up to $5,000 toward moving expenses.
HomeLight eligibility and property rules
HomeLight can fit a broader range of equity amounts than the Texas Knock program, but it has a detailed property and financing matrix. Approval is not based on credit alone.
Borrower & occupancy
Current matrix: 620 minimum credit score. Both the departing and incoming residences are owner occupied. HomeLight's current public availability list includes Texas, with Galveston excluded.
Equity Unlock
The current approval matrix permits an Equity Unlock of up to $2 million, subject to the borrower's financial profile, the departing home's equity position, property approval, and the new-home transaction.
Existing HELOCs & seconds
HomeLight's matrix states that an existing HELOC balance and second mortgages generally must be paid off with the Equity Unlock as part of the approved structure.
Acreage & property type
Properties over five acres, more than two units or lots, non-warrantable condos, manufactured/mobile/modular homes, mixed-use properties, condo-hotels, log homes, and certain other property types are ineligible under the current matrix.
Condition matters
Roof, framing, plumbing/electrical, HVAC, and other significant defects or active renovation projects can affect eligibility. HomeLight requests property photos and a home inspection as part of the process.
Incoming new construction
The incoming residence may be a new build once a Certificate of Occupancy is obtained. The departing residence cannot be in a community with ongoing construction under the current matrix.
What are the risks and fees associated with a bridge loan?
The useful comparison is not “bridge loan versus free.” It is the total bridge/program cost versus the timing, contingency, moving, and qualification problems the structure is solving.
0% interest is not 0% cost
Knock and HomeLight currently advertise 0% stated bridge-loan interest in applicable structures, but contract/program fees, closing costs, inspection/title charges, and other transaction costs can still apply.
You may still have carrying costs
Depending on the structure, you may continue paying taxes, insurance, utilities, HOA dues, maintenance, and potentially the existing mortgage until the departing property sells or the applicable program takes the next step.
The home still has to be marketable
Buy-before-you-sell providers underwrite the departing property. Value, acreage, property type, liens, market time, condition, zoning, utilities, and active repairs can affect approval.
A slower sale changes the economics
The longer the old home remains unsold, the more carrying costs and listing decisions matter. We model the likely sale timeline and available net proceeds before recommending a structure.
What can a buy-before-you-sell transaction look like?
Illustrative move-up buyer
- Current home estimated value
- $500,000
- Current mortgage balance
- $250,000
- Next home purchase price
- $600,000
- Cash needed from equity
- $100,000
Possible structure
A qualifying buy-before-you-sell program could provide approximately $100,000 of approved equity access for the new-home purchase while a backup purchase arrangement addresses the home-sale contingency. The new long-term mortgage would be underwritten separately.
After the current home sells, its proceeds would be used to pay the existing mortgage, the bridge/equity-unlock balance, program and transaction costs, and other seller charges. The homeowner receives the remaining eligible net proceeds.
Illustration only. This is not a quote, approval, or representation that a specific borrower would receive this equity amount. Actual proceeds and costs depend on the current provider approval, home value, liens, credit, transaction terms, and final sale.
When a Texas bridge loan may make sense
Move-up buyers with strong equity
You have meaningful equity in the current home and need some of it to complete the new purchase before the sale closes.
Buyers facing a DTI bottleneck
You can afford the next home after the current property sells, but carrying both housing payments on paper prevents the new mortgage from qualifying.
Buyers competing against cleaner offers
You have found the right next home, but a home-sale contingency makes the offer less attractive to the seller.
Families trying to avoid a double move
You would rather close on the new home, move once, then list or finish preparing the old home instead of using temporary housing.
Homeowners who need prep funds
Selected programs can provide approved funds for eligible home preparation or moving expenses in addition to the new-home purchase strategy.
Borrowers who want the options compared
A bridge loan is not always the best answer. We compare the cost and underwriting impact against simply carrying both homes, using available cash, or other eligible financing strategies.
What information do we need to review a bridge-loan scenario?
Don't choose the bridge product before you know the problem.
One borrower needs $150,000 of equity. Another has plenty of cash but needs DTI relief. Another can qualify carrying both homes and may not need a bridge product at all.
Guarantee Mortgage is an independent Texas mortgage broker. We can coordinate the buy-before-you-sell solution with the long-term mortgage and explain the tradeoffs before you commit to a program.
Other financing that may be part of the move
Conventional & Fixed-Rate Loans
The long-term mortgage on the new primary residence may still be a standard conventional structure.
Explore conventional loansTexas Jumbo Loans
Move-up purchases above conforming limits may combine a buy-before-you-sell strategy with eligible jumbo financing.
Explore jumbo optionsConstruction Loans
If the next home is being built, construction timing and the Certificate of Occupancy can affect which buy-before-you-sell option is usable.
Explore construction loans
Reviewed by Bryce Kennemer, Texas mortgage broker, NMLS #1808043, Guarantee Mortgage, LLC.
Program details reviewed August 2026 against current partner guidance. Because bridge and buy-before-you-sell programs change, current written approvals and provider agreements control.
Texas bridge loan FAQs
Can I buy a new house before selling my current home in Texas?
Potentially. Eligible Texas homeowners may use a bridge loan or buy-before-you-sell program to access qualifying equity, address a home-sale contingency, or improve the timing between the two transactions. Approval depends on the borrower, departing home, new purchase, credit, liens, property type, and the program selected.
What credit score do I need for a Texas bridge loan?
There is no universal bridge-loan minimum. Under the current partner materials used for this page, the Knock Bridge Loan Texas guide requires a 680 minimum mid credit score for all borrowers, while HomeLight's Buy Before You Sell approval matrix lists a 620 minimum. Other mortgage and program requirements still apply.
How much can I borrow with a bridge loan in Texas?
The amount depends on the provider and your available equity. Knock's current Texas guide caps its bridge loan at $500,000. HomeLight's current approval matrix lists an Equity Unlock amount of up to $2 million. Neither figure means every borrower can access the maximum; value, mortgage balances, liens, financial profile, and program underwriting determine the approved amount.
Do I have to make two mortgage payments?
It depends on the program and purchase-loan underwriting. Some borrowers can qualify carrying both homes. Others use a backup-offer or pending-sale structure to address the existing housing liability under applicable mortgage guidelines. We review this before choosing the bridge option because borrowing equity you do not need may add unnecessary cost.
Are Texas bridge loans really 0% interest?
Some of the programs discussed here currently use 0% stated bridge-loan interest. Knock's Texas materials state 0% interest for 180 days, and HomeLight's partner materials describe its bridge as 0% interest. That does not make either program free: contract or program fees, closing costs, inspection/title charges, and carrying costs may still apply.
What if I already have cash for the new home's down payment?
If the main issue is the current mortgage payment rather than access to equity, a DTI-focused program may be the better fit. HomeLight's DTI Drop is designed for eligible borrowers who use their own cash for the new purchase while using the backup-offer structure to address the home-sale contingency and departing mortgage liability, subject to the new lender's underwriting.
What happens if my current home does not sell?
That depends on the provider. Knock pairs qualifying Texas bridge loans with a Knock Purchase Offer and currently describes a six-month window. HomeLight also provides a backup purchase structure if the home remains unsold through the applicable program period. The exact purchase terms, deadlines, sale obligations, costs, and upside treatment are established in the current provider agreements and should be reviewed before closing.
Can I use a bridge loan on a condo, acreage property, or manufactured home?
Property eligibility varies significantly. Knock's current Texas guide allows qualifying single-family homes and townhomes and excludes condos. HomeLight's matrix excludes properties over five acres, non-warrantable condos, manufactured/mobile/modular homes, mixed-use properties, log homes, and several other property categories. Send us the address and property details first so we can determine which options are worth pursuing.
Can I use buy-before-you-sell financing with a new-construction home?
Potentially. HomeLight's current matrix says the incoming residence can be a new build if a Certificate of Occupancy has been obtained. Construction timing, the departing property, and the long-term mortgage still have to meet their respective requirements.
Is a bridge loan better than making a home-sale-contingent offer?
Not automatically. A bridge or buy-before-you-sell program has real fees and carrying-cost considerations, but it may solve problems a contingent offer cannot: accessing equity sooner, moving before listing, improving purchase-offer certainty, or addressing qualification. We compare the expected cost against the actual benefit for your transaction rather than treating the bridge product as the default.
Find out whether you need equity, DTI relief, or neither.
Tell us your current home's estimated value and mortgage balance, what you expect to buy next, and what is stopping the move today. We'll compare the eligible paths and explain the costs before you choose one.
Guarantee Mortgage, LLC | Company NMLS #279696 | Equal Housing Opportunity. For informational purposes only. This is not a commitment to lend or extend credit. All loans and buy-before-you-sell programs are subject to credit approval, underwriting, property review, provider approval, appraisal or inspection when applicable, and program eligibility. Program availability, fees, interest treatment, loan amounts, property requirements, timelines, backup-purchase terms, and lender guidelines are subject to change without notice. Additional restrictions may apply. Knock and HomeLight are third-party program providers and are not owned by Guarantee Mortgage. Final written loan disclosures, provider approvals, and signed program agreements control.
