How the Flyhomes Buy Before You Sell Program Works
Buying a new home while you still own your current one can be a real challenge. Many homeowners need the equity from their existing property to fund the down payment on their next one, which often means selling first.
But selling first creates its own complications. You may need to move twice, find temporary housing, or miss out on a home you want while waiting for your current one to sell.
That’s where buy before you sell programs come in. These solutions simplify the transition by improving buying power and reducing reliance on a home sale contingency. Flyhomes offers tailored solutions through your local loan officer or real estate agent, helping you buy first and move in while selling on your own timeline.
In this guide, we’ll walk through how Flyhomes’ Buy Before You Sell works, the tools behind it, and how it simplifies your move.
What is a buy before you sell program?
A buy before you sell program helps homeowners purchase their next home before selling their current one.
In a traditional process, many people must sell first to access equity for a down payment or to qualify for a new mortgage. This often creates a home sale contingency, which can weaken offers and add uncertainty to the timeline.
Buy before you sell (BBYS) programs are designed to remove these barriers. They can unlock equity before selling, strengthen your offer, or bridge the financial gap between buying and selling.
While many programs are built around a single financing solution, Flyhomes’ Buy Before You Sell solutions take a broader approach, combining multiple tools to fit different situations. This can give you more control over your timing and help strengthen your buying position.
The Flyhomes DREAM™ solutions
Flyhomes’ Buy Before You Sell programs are designed to tackle the most common challenges homeowners face when buying and selling at the same time. This approach is called Flyhomes DREAM™ Solutions:
D — DTI Buster
Lenders typically include your existing mortgage in your debt-to-income (DTI) ratio, which can limit how much you qualify to borrow. Flyhomes’ solutions may allow that mortgage to be excluded, boosting buying power and helping you make a stronger, non-contingent offer.
Example:
Anthony’s home was under contract when his buyer unexpectedly backed out. Without a confirmed sale, his existing mortgage had to be counted in his DTI, and he no longer qualified for the new loan. Flyhomes’ DTI Buster allowed the lender to exclude that mortgage, increasing his buying power by 40% and keeping his deal on track, no home sale contingency needed.
R — Retire & Downsize
Homebuyers looking to downsize, especially 55+ buyers ready for retirement, often fall outside traditional lending options. Flyhomes helps you move directly into your next home by leveraging equity across both properties in a simplified, short-term loan structure. Once your current home sells, you may be able to pay off that loan and avoid taking on a new long-term mortgage.
Example:
Susan and Mark wanted a $900K home in a 55+ community but most of their equity was tied up in their current $1.5M home. Flyhomes unlocked that equity to close in just 10 days, move once, and pay off the short-term loan after selling their old home. They were able to settle into retirement without taking on a new long-term mortgage.
E — Equity for Down Payment
When your cash is tied up in your current home, covering the down payment and closing costs on your next one can be difficult. Flyhomes’ solutions unlock that equity before you sell, so you can move forward and avoid a double move.
Example:
Tom and Jess were buying a $625K home but lacked cash for the down payment. Most of their funds were tied up in their current home, valued at $550K with about half still owed on the mortgage. Flyhomes helped them unlock over $116K in equity, giving them the funds to buy their next home, move in right away, and sell their previous home after settling in.
A — All-Cash Advantage
In competitive markets, sellers prefer offers that aren’t dependent on financing or another home sale. Flyhomes enables cash-like, non-contingent offers, helping strengthen your bid and close in as few as 10 days.
Example:
Kayla and Nick were trying to buy a $730K home, but their contingent offers kept losing to cash buyers. They had $36,500 for a down payment and needed a way to compete. Flyhomes helped them submit a non-contingent offer at full asking price, beating one that was $10K higher. They were able to close quickly and move forward without waiting on their current home to sell.
M — Move with $0 out of pocket
Flyhomes offers solutions that let you move forward with minimal upfront cash. By leveraging your home equity, you can finance up to 105% of your new home’s value, reducing out-of-pocket costs.
Example:
Tracy needed to move quickly to a better school district, but most of her wealth was tied up in her $1.3M home and other investments. She had limited cash and was competing with a cash buyer on a $1.6M home. Flyhomes helped her leverage equity from both homes for $1.68M (105% of the new home), covering the full purchase with little to no cash out of pocket.
How the Flyhomes Buy Before You Sell process works
Built on these DREAM solutions, Flyhomes programs give you a more flexible way to move from your current home to your next. Most buyers follow four simple steps:
1. Get your current home approved
Flyhomes reviews your home’s value and available equity to determine which solutions fit your needs, giving you a clear path forward.
2. Make a strong offer on your next home
Once approved, you can shop with confidence and submit a proposal that may not depend on selling first. In some cases, you can make a cash-like offer, improving your chances in competitive markets.
3. Close and move in
With financing already structured, once your offer is accepted, you can move directly into your new home without a double move.
4. Sell your previous home
After moving in, you can sell your previous home on your own timeline. Once it sells, the short-term financing is settled and any remaining equity is yours.
The financial tools powering your move
Flyhomes’ Buy Before You Sell DREAM™solutions are powered by a set of flexible financial tools. Used individually or together, they help you buy your next home before selling your current one. Here’s how each tool works and how it can support your move:
Guaranteed Backup Contract
One of the biggest challenges when buying before selling is how your current mortgage affects your ability to qualify for a new one. Carrying that debt can limit your borrowing power or force you to rely on a home sale contingency, which can weaken your position as a buyer.
The Guaranteed Backup Contract provides a bona fide backup purchase contract on your existing home. This may allow lenders to exclude your current mortgage from your DTI, which can increase your borrowing power and help you qualify for your next home without a home sale contingency.
You can often receive this contract within 24 hours, and it adds certainty by giving you the option to sell your home to Flyhomes if it doesn’t sell within 180 days. Flyhomes will handle the sale, and you keep any additional proceeds after costs.
Instant Equity
If your equity is tied up in your current home, accessing funds for a down payment, closing costs, or cash reserves can be difficult. This is especially true if you haven’t sold yet.
Instant Equity, a home equity loan, lets you tap into that equity before selling, giving you funds for your next purchase so you can move forward without waiting on a sale. The process is typically faster and requires less paperwork than traditional financing.
See how much equity you could use toward your next home
Flyhomes Cash Offer (Purchase Bridge Loan)
In competitive markets, the price you offer on a home is usually just one part of the equation. The strength of your proposal matters too. Sellers often prefer offers that aren’t dependent on mortgage financing or the sale of another property.
Flyhomes’ Cash Offer, a purchase bridge secured by the new home, allows you to make a cash-like, non-contingent offer on your next home. This can improve your chances of winning and may allow for a faster closing timeline. Once your previous home sells, the bridge financing can be repaid or refinanced into a long-term mortgage.
Cross Collateral Loan
Some buyers have enough overall equity but not enough liquid cash to cover their next home’s purchase price and closing costs. Many don’t want to sell investments or drain savings and just want to use the equity they already have.
Flyhomes’ Cross Collateral Loan combines the value of your current and next home into a single, short-term loan, letting you move forward with little to no cash out of pocket. In some cases, Flyhomes can finance up to 105% of your new home’s value, covering purchase costs plus fees like commissions and closing costs.
Because the financing is short-term, the loan can close in as little as 10 days, with no monthly payments and no prepayment penalties. After moving in, you can refinance into a long-term mortgage.
Compare Flyhomes’ 4 buy before you sell tools
| Guaranteed Backup Contract | Instant Equity | Cash Offer | Cross Collateral Loan | |
| What it does | Secure a guaranteed offer on your current home to strengthen your financing | Access your home equity before selling | Make a cash-like offer using equity/investments. | Use equity from both homes to move with little or no cash |
| Loan limits | N/A | Up to $2M | Up to $2.5M | Up to $3M / 105% LTV new home |
| Fast approval | 24 hours | 14 days | 10 days | 10 days |
| Payment | N/A | No monthly payment | No monthly payment | No monthly payment; partial payment due at sale |
Partnering with Flyhomes: A note for loan officers, agents, and builders
Flyhomes partners with loan officers and real estate agents to help deliver Buy Before You Sell solutions to their buyers. Because Flyhomes has no in-house agents or loan officers, there’s no competition or channel conflict. Just collaboration that helps you win more clients, close more deals, and provide smoother transactions that also benefit builders.
For loan officers
- Close more business: Top loan officers are closing 1.2 more deals per month using Flyhomes tools.
- Win more agent relationships: Provide solutions to your agent partners for their clients who need to buy before they sell, giving them more reasons to send business your way.
- Flexible partnership models: As a wholesale broker, you can originate the loan through Flyhomes. Or, you can introduce the client as a referral partner and Flyhomes will handle the rest.
- Built-in support: White glove guidance keeps the experience smooth for you, your agent partners, and your borrowers.
For real estate agents
- Double your commission opportunities: Support buyers with both their new home purchase and the sale of their current home.
- Every buyer comes with a listing: Each Buy Before You Sell transaction gives you a ready-to-list property, creating more opportunities to earn commissions.
- Win in competitive markets: Help clients make stronger, non-contingent offers and increase their chances of securing the home they want.
- Reduce fall-throughs: Fewer contingencies create more predictable construction and closing timelines.
For builders
- Convert more buyers into closed deals: Many buyers can’t qualify while carrying their current mortgage. Flyhomes solutions unlock their ability to buy, helping you turn inventory faster.
- Build with confidence: Fewer contingencies lead to smoother transactions and more predictable construction and closing timelines.
- Unlock higher sales: Buyers’ purchasing power increases when the weight of their current mortgage is removed, allowing them to comfortably qualify for higher-priced homes.
Partner with Flyhomes today to help your clients move sooner and your business grow faster.
FAQs
What is a buy-before-you-sell program, and how does it work?
A buy-before-you-sell program helps homeowners purchase their next home before selling their current one. It’s designed to unlock your home’s equity, strengthen your buying position, and reduce the need for a home sale contingency. You move first, then sell on your own timeline.
How is this different from a traditional bridge loan?
Traditional bridge loans focus on your current finances, such as debt, equity, and your existing home, which can limit buying power. Flyhomes’ Buy Before You Sell solutions use a modern bridge loan approach, underwriting based on a future event: your next home purchase and the expected sale of your current home. This lets us pre-approve buyers using projected proceeds, something most traditional lenders can’t do.
Designed for short-term Buy Before You Sell moves, Flyhomes combines multiple tools to support each part of your transition. Buyers often get faster access to funds, can make cash-like offers, or move forward with minimal upfront cash. We handle the process from loan structure to closing, and our bridge solutions have no monthly payments or prepayment penalties, so buyers can move confidently on their own timeline.
What happens if my home doesn’t sell?
Flyhomes provides a safety net with the Guaranteed Backup Contract. If your home hasn’t sold within about 180 days, you can sell it to Flyhomes at the contract price. We’ll handle the sale, and any extra proceeds go back to you, helping you move forward without waiting on a buyer.
Will I have to carry two mortgages?
Not in most cases. Flyhomes’ programs are structured so you don’t have to juggle full payments on both homes at once. Some solutions let you defer payments or roll them into short-term financing until your current home sells, reducing the financial strain during the transition.
What price range do you work with?
Flyhomes supports a wide range of home values, from entry-level to luxury. Depending on the program, maximum loan amounts can reach $2M, $2.5M, or $3M, and some solutions may cover up to 105% of your new home’s value. If you need to go above the maximum loan amounts, bring the case to us to see if we can make exceptions. The best option depends on your financial situation and goals.
Are these timelines and loan terms guaranteed?
Approval times, loan limits, and financing terms (including options like up to 105% loan-to-value) depend on factors such as borrower qualification, property details, and market conditions. Not all buyers will qualify for every solution. Programs like the Guaranteed Backup Contract are also subject to specific property eligibility requirements. For full details and current terms, it’s best to speak with a Flyhomes loan officer.
Ready to explore your buy before you sell options? Flyhomes can help you make the most of your equity and move with confidence.