The tool also shows a simplified debt ratio with both housing obligations. That is a planning view, not a decision that you qualify. The lender must confirm how the current home, bridge debt, income and any permitted exclusion are treated. [1]
Gather the timeline and both home budgets
Enter the current home's estimated value, mortgage and other lien payoffs, expected sale price and selling costs. Use a current payoff and seller net estimate, with the intended sale date clearly marked as an assumption.
For money needed before the sale, enter an actual proposed HELOC or bridge amount, fees, payment and availability date. An estimated maximum borrowing amount is not an approved credit commitment. Fannie Mae separately addresses bridge funds and the liabilities they create. [2]
Enter the replacement purchase's down payment, costs, deposits and complete housing payment. Include both homes' taxes, insurance and association obligations where applicable. Add temporary housing, storage or other overlapping expenses that matter to your move.
Finally, enter liquid funds and the reserve you want to preserve. Do not count the same sale proceeds as both today's down payment source and a future principal reduction.
Read liquidity and qualification separately
The cash view follows money through purchase closing, each overlap month and sale. It shows sale proceeds after all relevant payoffs, including the equity loan that helped fund the purchase.
The debt view uses entered gross qualifying income and qualifying obligations. Actual household cash flow instead uses spendable income and expenses. A payment excluded under an accepted underwriting rule may still be an expense you must pay until the sale.
For a sale delay, the tool adds 30, 60 and 90 days of overlap. It reports the lowest cash balance, not just the larger balance that appears after a successful sale. A plan can end with ample equity and still run short before reaching closing.
A hypothetical move before sale
Assume $87,000 liquid cash, an accepted $100,000 equity advance and $2,000 fees withheld. The $98,000 net advance brings available funds to $185,000. A $140,000 replacement closing requirement leaves $45,000.
Assume ordinary household cash flow already covers the new home and living expenses. Additional monthly overlap is $2,200 for the old home, $600 equity loan payment and $200 extra utilities, totaling $3,000.
| Sale timing after purchase | ** Cash left before sale proceeds** |
|---|---|
| Planned three month overlap | $36,000 |
| Thirty additional days | $33,000 |
| Sixty additional days | $30,000 |
| Ninety additional days | $27,000 |
Now assume a $500,000 sale, $300,000 old mortgage payoff, $100,000 equity loan payoff and $30,000 selling costs. Net modeled sale cash is $70,000, before other adjustments. It is not $170,000, because the new equity borrowing must also be repaid.
With $15,000 gross monthly qualifying income, $2,200 old housing, $3,900 new housing, $600 equity debt and $800 other recurring debt, the simplified ratio is 50%. No approval threshold is implied. Every figure in this example is hypothetical.
Compare the sequence you can sustain
The sell first view removes the overlap borrowing but can add interim rent, storage and an extra move. Enter those costs rather than assume selling first is free. Compare the lowest cash balance and timing certainty with the buy first plan.
After sale, a principal payment can reduce debt, but it does not automatically reduce the required monthly payment. An accepted recast needs servicer confirmation; refinancing is a separate new loan decision. [3]
Use the buy before selling guide, equity loan calculator and recast guide to investigate those steps. More tools are in the calculator hub.
Send Dane the planned closing dates, before sale cash low point and the 90 day delay result. Those figures show whether the proposed sequence leaves enough room to handle a sale that takes longer than hoped.
This calculator gives an estimate only. It is not a loan offer or approval.