Solution · Plan temporary borrowing on the new home.
Purchase-Money HELOC
Some HELOCs can finance the purchase of the new home itself. This may fit when you expect to apply substantial proceeds soon after selling the old home.
The useful distinction.
The financing should follow the intended life of the borrowing.
A few things matter.
- This is secured by the new home, unlike a HELOC on the home you plan to sell.
- Availability, eligibility, variable rates, payments, fees and payoff terms need review.
- You may be able to reduce the balance and keep the line open, subject to its terms. A delayed sale still needs a plan.