Start with the timing problem
Ask whether you need down-payment cash before selling, payment relief after selling, or liquidity after buying with cash. The answer usually identifies which tools deserve analysis.
Bridge financing
A bridge loan can convert departing-home equity into usable funds before the sale. Compare fees, payment, lien position, term and the consequences of a delayed sale.
Mortgage recast
A recast applies a substantial principal reduction and re-amortizes the remaining balance at the existing note rate and remaining term, if the loan and servicer permit it. It does not refund interest or change the rate.
Delayed financing
Under applicable requirements, a borrower who bought with cash may later finance the property without waiting for a standard cash-out seasoning period. Source-of-funds and transaction documentation matter.
Use a downside case
Compare a 30-, 60- and 120-day overlap, a lower sale price, selling costs and repairs. The strongest plan remains survivable when the sale is slower or smaller than expected.
Numbers to gather before buying first
A move-first plan should be designed around net equity and the downside case rather than a perfect sale. These inputs make the overlap risk visible.
- Realistic current-home value range and mortgage payoff
- Estimated selling costs, repairs and concessions
- Cash available without the sale and minimum reserves to retain
- New-home price, taxes, insurance and association dues
- Carrying-cost scenarios for 30, 60, 90 and 120 days
| Tool | When cash arrives | What it solves | Primary risk |
|---|---|---|---|
| Bridge loan | Before old home sells | Down payment or liquidity | Sale delay and short-term cost |
| Recast | After principal reduction | Lower payment on new loan | Not all loans permit it |
| Delayed financing | After eligible cash purchase | Replenishes cash | Documentation and eligibility |
Frequently asked questions
Does a recast change my interest rate?+
No. A recast typically recalculates the payment from a reduced balance using the existing rate and remaining term, if the loan permits it.
Is bridge financing the same as a HELOC?+
No. Both may access equity, but lien structure, draw access, pricing, repayment and qualification can differ.
Can every cash buyer use delayed financing?+
No. The purchase, source of funds, liens, timing and documentation must satisfy the applicable program requirements.