How to Use Equity to Buy a New Construction Home in DeSoto, TX

By Steven, Refind Realty

If you own a home in North Texas and have built up equity, you might be sitting on the perfect way to move into a brand-new home in DeSoto. With today’s rising property values, many homeowners are using their equity to upgrade without stretching their finances.

I’ve worked with sellers and move-up buyers across DeSoto and DFW, and I can help you understand exactly how to use your equity to make the move into new construction.

What Is Equity and Why It Matters

Equity is the difference between what your home is worth and what you still owe on it. For example, if your home is worth $350,000 and you owe $250,000, you have $100,000 in equity.

That equity can be used to:

• Cover the down payment on your new home

• Pay closing costs

• Possibly reduce or eliminate your mortgage insurance

If you're unsure of your current home’s equity, use our Home Seller Score to estimate it based on recent market data.

Step 1: Understand Your Equity Position

Before you start shopping for a new construction home, you’ll want to know how much equity you have available.

You can get this number by:

• Reviewing your mortgage balance

• Getting a Comparative Market Analysis (CMA)

• Talking to a lender or real estate pro (that’s me)

I also recommend our Home Seller Checklist to get your current home market-ready while you plan your move.

Step 2: Use a Bridge Loan or Home Sale Proceeds

You have two main ways to access equity:

1. Sell your current home first and use the proceeds

2. Use a bridge loan to buy your new home before selling the old one

I’ve helped clients do both, and each situation is different. If you want help deciding, our Home Selling Options guide breaks it down for you.

Step 3: Shop New Construction in DeSoto

Once you know how you’ll use your equity, it’s time to find the right builder and community.

DeSoto has several new home communities offering spacious layouts, modern finishes, and builder incentives. Visit our Dallas–Fort Worth New Construction Homes page for current listings.

Want cashback at closing? You may qualify through the Refind Realty Rebate Program.

Step 4: Get Pre-Approved

Even if you’re using equity for your down payment, you’ll still need financing for the new home. Use our Get Pre-Approved tool to connect with lenders who specialize in move-up buyers.

Step 5: Time the Transition

Coordinating the sale of your current home with the purchase of a new one can be tricky, but it’s manageable with the right plan. I often recommend:

• Listing your current home once your new build is close to completion

• Using a short-term leaseback from the buyer if you need time

• Talking to your builder about extended close dates

I walk through this exact process in our New Construction Webinar.

Final Thought

Using equity to buy a new construction home in DeSoto is one of the smartest financial moves you can make—especially while interest rates are still competitive and builder incentives are strong.

Let’s put your equity to work.
Download the Lone Star App to view listings, track incentives, and get alerts on available homes.
You're Always Home With Refind Realty.

FAQs

1. Can I use equity from my current home as a down payment on a new construction home?
Yes. You can either sell your home first or use a bridge loan to access your equity early.

2. How do I calculate how much equity I have?
Start with your mortgage balance and compare it to your home’s estimated market value. You can also use our Home Seller Score tool.

3. What’s the best way to shop for new construction in DeSoto?
Check out current listings at Dallas–Fort Worth New Construction Homes and ask about available builder incentives.

4. How does the Refind Realty Rebate Program work?
You may qualify to receive a rebate at closing when purchasing a new construction home. Learn more here.

5. Should I sell my home before or after I buy the new one?
It depends on your timeline and financing. I can help you evaluate both options based on your situation. Learn more about your Home Selling Options.