How To Buy a New Home Without Selling Your Old One

By Dan Ellison

Dan Ellison does more than overcome challenges: He thrives on them. Dan has the skills, experience, and proven ability to help his clients achieve maximum return on investment — and satisfaction.

Have you ever thought about keeping your current home as an investment instead of selling it? Many homeowners believe they have to sell before buying their next home, but that’s not always the case. There’s a strategy called the departing primary residence feature, and it can help you qualify for your next home while keeping your existing one. Instead of selling and losing out on future property value, you can turn your home into an income-producing asset while still moving forward with your next purchase.

Most people run into one big problem when trying to buy a new home while still owning their current one—qualifying for a mortgage. Lenders look at your debt-to-income ratio, and having two mortgages can make approval difficult. Even if you can afford both payments, on paper, it may not look that way to the bank. This is where the departing primary residence feature comes in. It allows you to count rental income from your current home to offset your mortgage, making it easier to qualify for your next loan.

Here’s how it works: First, you secure a lease agreement for your current home. Once you have a signed rental contract, the lender will take 75% of that rental income and apply it toward your mortgage. This reduces your debt-to-income ratio, which improves your chances of getting approved for your new home loan. Instead of struggling to qualify while holding two mortgages, you now have additional income on your application that helps balance the numbers.

The benefits of this strategy are huge. First, you get to keep your current home as a long-term investment. Real estate typically appreciates over time, meaning your home could grow in value while also generating rental income. Second, you avoid the stress of selling in a market that may not be ideal for sellers. Lastly, you increase your wealth by owning multiple properties—something that many successful investors do to build financial security.

If you’re considering buying a new home but don’t want to sell your current one, this strategy could be the perfect solution. It allows you to move forward without sacrificing a valuable asset. If you want to see how this can work for you, let’s talk. Call or text me at 916-545-6555 or email dan@homesbytribe.com today.