How to Buy Before You Sell in Portland
You Want to Buy Before You Sell. Here Are Your Options.
This is one of the most common situations we see in Portland right now. You have a home with equity. You have found a place you want to buy. But you have not sold yet, and the timing does not line up.
Most people assume the only path is to sell first and figure out where to live later. That is one option, but it is not the only one. There are several ways to bridge the gap between selling and buying, and they work differently depending on your financial situation. Here is an honest breakdown of each.
Bridge Loans
A bridge loan is a short-term loan that lets you borrow against the equity in your current home to fund the purchase of a new one. Most lenders will let you borrow up to 80% to 85% of your home's value, minus what you still owe on it.
Here is the catch Scott McCarty at Cross Country Mortgage points out: unless your home is paid off or close to it, that math often does not produce enough cash for a full down payment on your next home. If your home is worth $500,000 and you owe $300,000, you might access $100,000 to $125,000 in bridge funds. That may cover a down payment in some price ranges but not others.
Bridge loans typically run 6 to 12 months, carry higher interest rates than a standard mortgage, and come with closing costs of 1% to 3% of the loan amount. They are a legitimate tool but work best when you have significant equity and a home that is likely to sell quickly.
HELOC (Home Equity Line of Credit)
If you have time to plan ahead, a HELOC can be a cleaner option than a bridge loan. You open the line of credit while you still own your home, then draw from it when you need funds for a down payment.
The advantage is flexibility. You only pay interest on what you actually use, and rates are generally lower than bridge loan rates. The drawback is timing. A HELOC can take 2 to 6 weeks to set up, so this is not a last-minute solution. You also need equity in your current home and a lender willing to issue the line before your home goes on the market. Some lenders will not issue a HELOC on a home that is already listed for sale.
Securities-Backed Line of Credit (SBLOC)
This is the option your client heard about, and it is worth understanding properly.
If you have a non-retirement investment account, stocks, bonds, mutual funds, or ETFs, you may be able to borrow against those assets without selling them. This is called a securities-backed line of credit, or SBLOC.
Here is why people find this appealing. When you sell investments to raise cash, you often trigger capital gains taxes. With an SBLOC, you borrow against the portfolio instead. Your investments stay in place and keep growing. You access the cash you need, use it for a down payment, and repay the loan when your home sells.
Depending on the brokerage, you can typically borrow 50% to 70% of your portfolio's value. Setup is fast, often 3 to 5 business days, and there are usually no origination fees.
There are real risks to understand. If the market drops significantly while the loan is open, you may face a maintenance call, meaning you would need to add money to the account or pay down the loan immediately or risk having your investments sold to cover the shortfall. For this reason, most financial advisors recommend borrowing well below the maximum allowed, ideally 25% to 30% of your portfolio value rather than the full limit.
This is a conversation to have with your financial advisor, not just your lender. It is not the right tool for everyone, but for someone with a solid, diversified investment account, it can be an elegant way to move without disrupting your long-term financial plan.
Asset-Income Loans
Another option Scott mentioned involves using investment income to qualify for a new mortgage. Some lenders will calculate a monthly income figure based on your investment portfolio value, even if you are not drawing from it regularly. This can help buyers who are equity-rich and income-varied, such as retirees, business owners, or people between jobs, qualify for a conventional loan with as little as 3% to 5% down.
This is a less common loan product and not every lender offers it. If this sounds like your situation, it is worth asking your lender specifically whether they work with asset depletion or asset-based income calculations.
Rent-Back Agreement
This one does not involve financing at all. If you sell your home first, you can negotiate a rent-back agreement with the buyer, allowing you to stay in the home for 1 to 45 days after closing while you complete your purchase. You essentially become a short-term tenant in your own home.
This works well in a market where buyers are motivated and willing to wait. It eliminates the need for any bridging financing, simplifies the transaction, and gives you time to close on your next home without rushing.
Buy Before You Sell Programs
A newer category of fintech companies has built products specifically for this problem. Companies like Knock, Orchard, and Homeward offer structured programs that let you buy your next home before your current one sells.
The basic idea is similar across all three. They advance you the equity from your current home, you make a non-contingent offer on your next home, move in, then your current home sells and you settle up. Some will even front money for pre-listing repairs.
The tradeoff is cost. These programs typically charge 1.9% to 7% in program fees on top of normal closing costs and agent commissions. On a $600,000 home that can add up to $40,000 or more in fees beyond what you would otherwise pay.
They are worth knowing about, but worth running the full math on before committing. A bridge loan or HELOC will often be cheaper if you qualify. That said, for a seller who does not qualify for traditional bridge financing or who wants the simplicity of a single program managing the whole process, these can be a workable solution.
Availability also varies by market. As of early 2026, Portland is not a primary service area for most of these companies, so your options may be limited locally. Worth checking current coverage directly with each company if you are interested.
Flyhomes
Flyhomes is worth knowing about specifically because it is available in Oregon and works through local lenders, which means you may be able to access it through your own mortgage professional.
The way it works is a bit different from the other programs. Rather than simply advancing cash, Flyhomes places a guaranteed backup offer on your current home. That backup offer allows your lender to remove your existing mortgage from your debt-to-income calculation, which can significantly increase what you qualify for on your next purchase. You then have 180 days to sell your home on the open market at full value. If it does not sell, Flyhomes steps in and purchases it at the pre-agreed price.
The daily carrying cost while you are in the new home waiting for your old one to sell typically runs $100 to $200 per day, which is essentially the interest on the short-term loan.
If you want to explore whether this program fits your situation, Darren Balogh at Generations Home Loans is a local lender who works with Flyhomes directly and can walk you through the numbers for your specific scenario.
If you have been told about Flyhomes by a lender, that conversation is worth continuing. It solves a different problem than a bridge loan does, and for buyers who are equity-rich but income-limited on paper, it can open doors that traditional financing cannot.
Kim Campbell & Francisco Salgado
Licensed Oregon Realtors
Which Option Is Right for You?
There is no universal answer. It depends on how much equity you have, whether you have investment accounts, how quickly your current home is likely to sell, and how much risk you are comfortable carrying during the transition.
What we can do is help you map out the timing and connect you with lenders who know these products well. If you are thinking through a buy-before-you-sell situation in Portland, this is exactly the kind of conversation we are good at.
Disclaimer:
This information is provided for general educational purposes and should not be construed as legal, financial, or tax advice. Property tax laws and regulations can vary and change over time. Homeowners are encouraged to consult with a qualified tax professional, attorney, or local assessor’s office for guidance specific to their situation.
