How to Buy a Home Without a Sale Contingency
You finally found the right home. It’s the perfect upgrade from your current place and feels like yours the moment you walk in. But there’s a catch. Your equity is still tied up in your existing property, and you need it in order to move forward on the new one. That can mean you’ll have a home sale contingency, tying your offer on the new home to the sale of your current one. But that condition can make your offer less competitive in fast-moving markets.
In this guide, we’ll help you better understand what a contingent sale means, why it creates challenges, and how to remove the sale contingency so you can more confidently pursue the home you want.
What is a home sale contingency?
A home sale contingency is a clause in your real estate contract that makes the purchase of your new home dependent on selling your current home first. The contract usually includes a deadline, often before the closing date on your new home.
For buyers, this protection is crucial if you need the equity from your current home to help fund the down payment on your next one. It also gives you flexibility, allowing you to make an offer on your next home without committing to two properties at once.
Most importantly, a home sale contingency offers vital protection. If your current home doesn’t sell in time, you can usually step away from the purchase without losing the upfront deposit tied to your offer.
The risks of buying a home contingent on selling yours
However, those protections and benefits come with significant downsides. A home sale contingency slows down your timeline and introduces uncertainty into the deal, especially if your current home stays on the market longer than expected or falls out of contract. The seller of the new home may be left waiting or forced to start over with new buyers.
That’s exactly why non-contingent offers win in competitive markets and multiple-offer situations. With a clearer path to closing, sellers usually see them as the simpler, more reliable choice. If you want to strengthen your position as a buyer, finding a way to remove the home sale contingency can make your offer far more appealing.
Traditional ways to buy without a sale contingency
Fortunately, there are a few common ways buyers solve the timing and cash-flow challenge of purchasing the next home before the current one sells. Each can help remove the home sale contingency, but the right fit depends on your equity, income, and comfort level with short-term risk.
Open a home equity line of credit (HELOC)
A HELOC lets you borrow against the equity you’ve built in your current home. Instead of receiving a lump sum, you get access to a revolving line of credit that you can draw from as needed. Those funds can help cover a down payment, closing costs, or other moving expenses before your existing home sells, helping you submit a stronger non-contingent offer.
A HELOC may be best for homeowners who have substantial equity, strong credit, and enough income to comfortably manage an additional payment for a few months. The downside is that HELOC rates are usually variable, so your monthly payment can change over time. If your current home takes longer than expected to sell, carrying the HELOC balance alongside your new mortgage can become expensive.
Take out a bridge loan
A bridge loan is short-term financing specifically designed to help you buy a new home before selling your current one. These loans can cover the down payment on the new home, making it easier to submit a strong non-contingent offer. They’re often a smart fit for buyers in fast-moving markets who need to act quickly and feel confident their current home will sell within a reasonable timeframe.
The tradeoff? Bridge loans often come with higher rates, steeper fees, and stricter qualification standards than traditional mortgages. Because they’re short-term by design, they can add pressure if your current home spends extra time on the market.
Carry two mortgages temporarily
Buyers with strong income, low debt, and healthy savings reserves may choose to qualify for a new mortgage while keeping their existing one for a short period. This approach allows you to move quickly on the next home without taking out a separate HELOC or bridge product, as long as you feel comfortable covering both payments until the first property sells.
The upside is simplicity. The risk is cash flow. If the old home doesn’t sell quickly, two full mortgage payments can put real strain on your monthly budget and debt-to-income ratio.
How to buy your dream home without a sale contingency
Traditional approaches can help you remove a home sale contingency when buying a new place, but they often involve added debt, variable rates, or managing two housing payments at once. Flyhomes’ Buy Before You Sell (BBYS) solutions offer a way for buyers to make a strong non-contingent offer without those added tradeoffs.
Instead of relying on a single financing tool, Flyhomes combines multiple strategies designed to help you buy a house before you sell your current one. This approach is called Flyhomes DREAM™ Solutions:
D — DTI Buster
Helps reduce your debt-to-income (DTI) ratio by potentially excluding your current mortgage so you can qualify for a larger loan amount and make a stronger non-contingent offer.
R — Retire & Downsize
Leverages your home equity through a short-term loan structure to help many 55+ buyers downsize without taking on a new long-term mortgage. This can make it easier to transition into retirement with more financial flexibility.
E — Equity for Down Payment
Frees up your home equity early so you can cover your down payment and closing costs without waiting for your current home to sell.
See how much equity you could use toward your next home
A — All-Cash Advantage
Helps you make a cash-like, non-contingent offer so you can compete more effectively in multiple-offer situations.
M — Move with $0 out of pocket
Taps into your home equity to drastically reduce upfront cash needs, allowing some buyers to move with little to no money down.
Many of these DREAM solutions are made possible by the Guaranteed Backup Contract (GBC), a non-loan solution that gives you a bona fide backup offer on your current home. If your property doesn’t sell within the agreed timeframe, typically up to 180 days, Flyhomes can purchase it at the contract price and handle the resale process. You keep any remaining proceeds after standard selling costs, giving you both flexibility and a built-in safety net.
In many cases, this may allow your current mortgage to be excluded from your debt-to-income ratio, which can increase your borrowing power and help you make a stronger non-contingent offer. You can often receive a backup contract within 24 hours, allowing you to move quickly on a new home while your current one stays on the market.
For buyers whose path to removing a home sale contingency looks a little different, Flyhomes also offers additional tools that can be used on their own or together:
Instant Equity unlocks your current home’s value before it sells, helping you access funds for your down payment and closing costs. This gives you the flexibility to move forward without waiting on a sale or depending on a home sale contingency.
Flyhomes Cash Offer uses short-term financing secured by the new home so you can submit a cash-like, non-contingent offer that stands out in competitive markets.
Cross Collateral combines the value of your current and next home into one short-term structure, helping some buyers move with little to no cash out of pocket.
These programs provide a modern alternative to traditional methods of removing a home sale contingency. Instead of relying on bridge loans, HELOCs, or carrying multiple payments, buyers can use flexible tools designed to submit stronger non-contingent offers and stay competitive.
When you find your next home, your current one doesn’t have to hold you back. You can simply focus on making the move.
Ready to buy your next home without a home sale contingency? Explore how Flyhomes can help you make stronger offers and stay competitive.
FAQs
What happens to my upfront deposit if I remove a home sale contingency?
When you make an offer on a home, you typically put down an upfront deposit to show you’re serious about buying. If your offer includes a home sale contingency, that deposit is usually protected if your current home doesn’t sell in time.
If you make an offer without a contingency and your current home doesn’t sell, you might be unable to secure financing. In that scenario, you risk losing your earnest money deposit entirely. Buyers often explore alternatives that still let them make a strong offer without taking on that risk.
Are bridge loans harder to qualify for than traditional mortgages?
Yes, because they’re based on your ability to carry short-term debt across two homes. Lenders typically look at your existing mortgage, your new mortgage, income stability, and how quickly your current home is expected to sell.
Even when approved, they can come with higher costs and more complexity, which is why many buyers explore other options to remove a home sale contingency.
Do I need a 20% down payment?
Not necessarily. While 20% is a common benchmark, many buyers purchase homes with less upfront depending on their loan type and financial situation. For many buyers, the bigger challenge is accessing the equity tied up in their current home, which is frequently what makes a home sale contingency necessary.
How does Flyhomes help if my current home takes longer to sell?
Flyhomes offers solutions designed to keep your purchase on track even if your current home doesn’t sell quickly. Depending on the program, you may be able to move forward with your new home first, while Flyhomes provides a structured path for your existing home to sell over time.