Can I buy a new home before I sell mine?
You may be able to, depending on your income, savings and the equity in your current home. There are three common paths: buy first and carry both homes for a while, sell first and live somewhere in between, or make an offer that depends on your current home selling. Tom can lay out each path with your payment and Cash to close The total you bring to closing: your down payment plus closing costs, minus any deposits, credits or gifts. See the full glossary.
Will the lender count both mortgage payments?
It depends on where your sale stands. Under Fannie Mae's Selling Guide, if your current home is pending sale but won't close before your new loan, the lender counts both your current payment and the new one when it qualifies you. The lender can leave out the current payment if it has the signed sales contract for your current home and confirmation that the buyer's financing contingencies have been cleared.
Other loan programs have their own rules, so ask Tom how they apply to you.
Can I keep my current home as a rental?
Yes, and Fannie Mae's guide has rules for it. A current home converting to a rental is qualified under its rental income rules for a departing residence, along with its reserve requirements. If you keep the home as a second home instead, its full payment counts in your monthly debts. Ask Tom early what the rental income rules will need from you.
How can I use equity from my current home?
Some owners open a home equity line of credit (HELOC) on their current home and use it toward the next home's down payment and closing costs, then pay it off when the home sells. The HELOC payment counts in your debts while it's open. Lenders may not open a line on a home that's already listed for sale, so ask about timing before you list. See HELOC vs cash-out refinance.
What is a contingent offer?
A contingent offer makes your purchase depend on your current home selling, usually by a date set in the contract. It protects you from owning two homes, but a seller may weigh it against offers without that condition. Your agent can explain how sale contingencies are being received in the towns you're considering.
What costs come with buying first?
Buying first can mean two sets of closing costs and, for a while, two payments. If your current home is in New Hampshire, the Real estate transfer tax A New Hampshire tax on property sales, $0.75 per $100 of the price for both the buyer and the seller. See the full glossary applies on both sides: your buyer's share on the new home and your seller's share on the current one. The transfer tax calculator shows both. Selling in Massachusetts? See moving from Massachusetts.
Tools for this topic: Affordability calculator · Transfer tax calculator
Sources
- Fannie Mae Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned
- NH Department of Revenue Administration, Real Estate Transfer Tax
Checked October 2026. Limits and program rules change, so confirm current figures before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.