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.
There are ways to bridge that gap. None of them are free, and none of them are simple. Each one involves a tradeoff between cost, timing, and qualification. What we can tell you is that the options exist, they work for the right situations, and understanding them clearly is the first step to figuring out which one fits yours.
Here is an honest breakdown of each, starting with the least complicated.
Rent-Back Agreement
If you sell your home first, you can negotiate a rent-back agreement with the buyer, allowing you to stay in the home for up to 60 days after closing while you complete your next purchase. You essentially become a short-term tenant in your own home.
This works well when buyers are motivated and willing to wait. It requires no bridging financing, simplifies the transaction, and gives you time to close on your next home without rushing. When the timing lines up, this is often the cleanest path available.
Bridge Loans
A bridge loan is a short-term loan secured against your current home that gives you the funds to close on your next one. You are essentially qualifying for a new loan, with the down payment coming from the bridge loan proceeds.
Here is how Scott McCarty at Cross Country Mortgage structures them: lenders can go up to 85% of your current home's value, with loan amounts up to $700,000. You have four months to close on your next home and sell the original, with extensions typically available. The cost of the bridge loan itself is 1%, which is significantly cheaper than most buy-before-you-sell programs. Your departing home does need to be listed before you sign purchase documents on the new one.
The main qualification consideration is that you need to carry both loans simultaneously. The original mortgage stays in place and the bridge loan sits on top of it. The good news is that bridge loan payments are interest-only, which keeps the monthly carrying cost lower than it might sound. For buyers with strong income relative to their debt load, this is manageable. For others, it can be the limiting factor.
For situations that fall outside standard parameters, Scott also has brokered bridge loan options that go up to 95% of value, with loan amounts as high as $30 million, and that work for second homes and investment properties as well.
HELOC (Home Equity Line of Credit)
If you have time to plan ahead, a HELOC can be a less expensive alternative to 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.
You only pay interest on what you actually use, and rates are generally lower than bridge loan rates. The key limitation is timing. A HELOC takes 2 to 6 weeks to set up, so this is not a last-minute solution. Some lenders will also not issue a HELOC on a home that is already listed for sale, which means you need to move on this before your home hits the market.
When the timing works, it is worth exploring before defaulting to a bridge loan.
Securities-Backed Line of Credit (SBLOC)
An SBLOC, sometimes called a margin line, lets you borrow against a non-retirement investment portfolio, stocks, bonds, mutual funds, or ETFs, without selling the underlying assets. You access cash for a down payment, your investments stay in place, and you repay the loan when your home sells. Setup is typically fast, often 3 to 5 business days, and there are usually no origination fees.
In practice, Scott McCarty notes that this option applies to fewer than 10% of the buyers he works with. It requires a substantial investment portfolio with a firm that offers this product, and even buyers who qualify will likely still need a mortgage alongside it unless they can cover the full purchase price from the line. If you have access to an SBLOC or margin line through your investment firm, it is worth discussing with your financial advisor before assuming it solves the full picture.
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.
A Note on Buy-Before-You-Sell Programs
Companies like Knock, Orchard, and Homeward have built products around this exact problem. The general model is similar across all of them: they advance equity from your current home, you make a non-contingent offer on your next home, move in, and settle up when your current home sells.
The tradeoff is cost. Program fees typically run 1.9% to 7% on top of normal closing costs and commissions. On a $600,000 home, that can add $40,000 or more in fees beyond what you would otherwise pay. A bridge loan or HELOC will usually be cheaper if you qualify.
It is also worth noting that as of early 2026, Portland is not a primary service area for most of these companies. Worth checking current availability directly with each one if you are interested.
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.
