How Do You Buy Before You Sell in Myrtle Beach?

Yes, you can buy before you sell. How you do it depends on one question: does your lender count the mortgage you already have? If the old payment counts against you, you need a different route than if it doesn’t.

People ask me about this when they’re moving up, moving to the coast from somewhere else, or downsizing in Murrells Inlet or Surfside Beach and the old house hasn’t sold. Here’s how lenders treat that old payment, what a bridge loan is, and what your other options look like. Everything below reflects Fannie Mae’s guidelines as of October 13, 2026.

Can you buy before you sell, and what gets in the way?

You can, and the obstacle is your debt-to-income ratio. That’s the share of your monthly income that goes to debt payments, and lenders cap it. If you own a home with a mortgage and you’re buying another, the lender sees two housing payments, and the math can stop a deal that looks fine on paper.

Under Fannie Mae’s Selling Guide, topic B3-6-06 (dated September 2, 2026), a lender has to count both housing payments when your current home is pending sale and the title won’t transfer before your new loan closes. A housing payment here means PITIA: principal, interest, taxes, insurance, and any association dues.

There’s an exception, and it’s the whole game. The lender doesn’t have to count the old payment if it gets the executed sales contract on your current home and confirmation that any financing contingencies on that sale have been cleared. A financing contingency is the buyer’s way out if they can’t get a loan. Once it’s cleared, your buyer is committed to the purchase, and your old payment is on its way out. If your current home is a second home, its payment counts either way.

Qualifying is one problem. Carrying both homes is another. Two sets of property taxes, insurance, utilities, and upkeep don’t stop because you’re waiting on a closing date, and an empty house on the Grand Strand through hurricane season carries its own risks. Before you buy first, decide how long you can carry both without losing sleep. That number is yours to set, and I’d set it before you fall in love with a house.

What is a bridge loan, and how does it work?

A bridge loan is short-term financing that uses the equity in your current home to help you buy the next one, and you pay it off when the old home sells. Equity is the value of your home minus what you owe on it.

Here’s what surprises people: a bridge loan isn’t a standard mortgage product. Fannie Mae doesn’t offer one. Its guide only says how to treat one when it shows up in your file, in topic B3-4.3-14, and the key condition is that the bridge loan can’t be cross-collateralized against the new property. The lender also has to document that you can carry the new home, the current home, the bridge loan, and your other obligations at the same time.

The debt side matters too. Under topic B3-6-05 (dated August 5, 2026), a bridge loan used to close on a new primary residence counts as a contingent liability in your monthly debts. The same exception applies: an executed sales contract on your current home with the financing contingencies cleared.

Federal ability-to-repay rules, 12 CFR 1026.43(a)(3)(ii), exempt short-term bridge loans of this type from the standard underwriting requirements that apply to most mortgages. My read is that this is why terms vary more from lender to lender on bridge loans than on a regular mortgage. So compare the Loan Estimate for the total cost, not just the monthly number. If you want the basics of how I handle these, see my bridge loan page.

Can you borrow against your current home instead?

Yes, and this route works for many people. Fannie Mae allows funds borrowed against an asset you own, and real estate is on the list, as long as the lender documents the loan terms and that the money reached you (topic B3-4.3-15, dated October 30, 2009). The guide doesn’t use the word HELOC, so I’ll just say borrowing against the equity in your current home. A HELOC is a home equity line of credit, a revolving line secured by your house.

The catch: the lender has to count the payment on that borrowing as a debt, and if the loan requires no payment, the lender calculates an equivalent one. Many lenders also won’t open a new line on a home that’s already listed for sale. So if this is your plan, open it before you put the sign in the yard.

What if you plan to use the proceeds from your sale?

You can, but the order of closings matters. Under topic B3-4.3-10, a lender can count anticipated net proceeds from a home you’ve listed. If you have a sale price, net proceeds are the price minus your selling costs and every lien. If you don’t, the lender discounts the list price and adjusts for the market.

To use that money for your down payment and closing costs, the lender needs the settlement statement from the sale, either before or at the same time as the new home’s settlement. That statement has to show enough net cash to close the purchase.

On the Grand Strand, that usually means two closings arranged to land together. South Carolina requires an attorney at closing, and your two attorneys have to coordinate. I wrote about how that works in why South Carolina requires an attorney at your closing.

What about a home-sale contingency or a rent-back?

Neither one is a loan product, and I couldn’t find either in Fannie Mae’s guide, so treat them as contract terms.

• Home-sale contingency: your offer on the new home is conditional on selling your current one. In a busy stretch, some sellers won’t accept it. It’s a negotiation, and your agent and closing attorney handle the language.
• Rent-back or leaseback: you sell your old home and stay in it for an agreed period after closing while you wait for the new one. The terms are between you and your buyer.

Both can help, and neither replaces a lender saying yes. Ask me first what the lender needs, then build the contract around it.

What if you keep the old home as a rental?

That’s a different plan, and Fannie Mae treats it differently. Rental income from a home you’re leaving has its own rules in topic B3-3.8-05, and if the result is negative, it still counts against you. Be straight about your plan from the first conversation. Telling a lender you’ll live in the new home as your primary residence when you won’t is occupancy misrepresentation, and that’s mortgage fraud. I’d much rather build the right loan around the real plan.

What should you do first?

Call before you list. The order you do things in changes what’s available, and an equity line, for example, is much harder to open once the house is for sale. Tell me which of the three paths fits, selling first and closing together, borrowing against equity, or a bridge loan, and I’ll run what each one does to your qualifying numbers. When you’re ready, get pre-qualified, and I’ll tell you whether buying first is realistic or whether waiting for the sale makes more sense.

Frequently Asked Questions

Can I buy a new house before I sell my old one?

Yes. The deciding question is whether your lender has to count the payment on your current home. That determines which route works for you.

Will my lender count both mortgage payments?

Under Fannie Mae’s guide, yes, when your current home is pending sale and the title won’t transfer before your new loan closes. The exception is when the lender gets an executed sales contract and confirmation that the financing contingencies on that sale are cleared.

What is a bridge loan?

A bridge loan is short-term financing that uses the equity in your current home to help you buy the next one, and it’s paid off when the old home sells. It isn’t a standard mortgage product, so terms vary by lender.

Can I use proceeds from my home sale for the down payment?

Yes, but your lender needs the settlement statement from the sale before or at the same time as your new home’s settlement, and it has to show enough net cash to close the purchase.

About Travis Buis

Travis Buis is a loan officer with Elite Home Lending serving Myrtle Beach and the Grand Strand, working with buyers and homeowners across Horry and Georgetown counties. He handles purchase, refinance, and investment financing, and spends a fair amount of his week on the questions that come with moving up or moving to the coast — timing two closings, counting an existing mortgage, and second homes. His approach is to explain the mechanics first so you can make the call yourself, then handle the loan once you have. Get in touch.

Travis Buis, NMLS #1711446. Elite Home Lending, LLC — NMLS #2788023. Equal Housing Opportunity.

This article is for educational purposes only and is not a commitment to lend or an offer of credit. Program terms, rates, and eligibility standards are set by lenders, investors, and agencies and are subject to change without notice. Loan approval is subject to underwriting, credit approval, and property eligibility. Calculator results are estimates only. Nothing here is tax or legal advice — consult your CPA or attorney for your situation.