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HomeLight’s new ‘Buy Before You Sell’ creative financing taps into high levels of home equity to allow home buyers take the money out of their existing house and apply it for a down payment on their new home through a 0% interest loan

May 19, 2025 //  by Finnovate

Rising mortgage rates have created a bottleneck in deal flow, with 47% of surveyed loan officers citing high interest rates as the biggest obstacle to closing transactions. Many buyers — particularly those who already own a home — find themselves trapped by high debt-to-income ratios and immobile equity. “It’s very unlikely that you can afford both mortgage payments at once,” Nick Friedman, president of homes at HomeLight said. “And so, with [HomeLight’s] Buy Before You Sell, we allow you to remove that existing mortgage payment… [and] offer a 0% interest loan where we basically allow [clients] to take the money out of their existing house and go use it for a down payment on their new home.” HomeLight’s Buy Before You Sell offering is one product in the marketplace designed for unlocking liquidity and eliminating friction in a process that has traditionally been rigid and risk-averse. At its core, the tool helps clients sidestep the chicken-and-egg problem of needing to sell their home before they can afford their next one. It’s particularly relevant now, as home equity remains at all-time highs even while transaction volume has stalled. Beyond HomeLight’s proprietary products, Friedman pointed to broader trends in creative financing that are helping to prop up demand in a cooling market.

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Category: Channels, Innovation Topics

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