How to Use Your Home Sale as a Down Payment for a New Build in DFW | Refind Realty DFW
How to Use Your Home Sale as a Down Payment for a New Build in DFW
By Steven J. Thomas
Direct Answer
You can absolutely use the proceeds from your current home sale as the down payment for your new construction home in Dallas–Fort Worth.
The challenge is timing — most homeowners need the equity from their existing home before closing on the new one.
That’s where bridge programs, contingent offers, and creative financing come in.
With the right structure, you can buy your new build first — then sell your current home after you’ve moved — without double payments or losing your deposit.
1. Understand the Timing Problem
Most homeowners in DFW have two major constraints when upgrading:
They need their equity for the down payment on the new home.
Builders usually require non-contingent contracts (you can’t have a home sale pending).
This timing gap causes many homeowners to delay moving — but with the right plan, you can unlock your equity early and move seamlessly.
2. Know Your Options for Accessing Equity Early
There are three main paths to using your home sale for a new build down payment:
OptionBest ForHow It WorksAdvantagesHomeSwap ProgramSellers who want to buy before they sellAccess up to 80% of your home’s equity to purchase your new build firstMove first, sell later, avoid double movesCash Plus ProgramCompetitive new-build buyersConvert your offer into a cash purchase using your home’s equityStronger offer, faster builder approvalTraditional Bridge LoanHigh-equity homeownersTemporary financing between sale and purchaseFlexibility for simultaneous closings
These programs bridge the gap between your current home equity and your future down payment — giving you the leverage of a cash buyer without selling first.
💡 Explore your options: Home Selling Options
3. Coordinate With Your Builder Early
Builders in Dallas–Fort Worth have different rules for contingent or delayed closings.
When you structure your contract properly, you can:
Lock in today’s pricing.
Secure your lot or floor plan.
Time your closing for your equity release.
At Refind Realty DFW, I coordinate directly with builder reps to align your sale timeline and build completion date, so your transition is seamless.
4. Estimate Your Net Proceeds Accurately
Before you commit to a new build, calculate what you’ll realistically walk away with from your home sale.
Your net sheet should include:
Estimated sale price
Remaining mortgage balance
Commissions and closing costs
Potential repairs or concessions
Estimated cash at closing
📊 Get your personalized estimate → Home Seller Score
This helps you determine how much equity you can apply toward your new build’s deposit and down payment.
5. Structure Your Timeline
Here’s what a smooth transition typically looks like:
StepActionTiming1Sign new build contractMonth 02List current homeMonth 1–3 (while build is underway)3Go under contractMonth 3–54Close on current homeMonth 5–75Move into new buildMonth 7–8
If your builder’s completion date is fixed, programs like Sell & Stay allow you to close early and lease back your home until your new one is ready.
6. Avoid These Common Mistakes
When using your home sale to fund a new build:
🚫 Don’t assume your home will sell instantly — start the prep process early.
🚫 Don’t rely solely on Zillow or Redfin estimates for pricing.
🚫 Don’t lock your rate before you know your sale timeline.
Instead, plan your financing, listing, and builder deadlines together — ideally with one agent managing both sides (that’s where dual expertise in real estate and lending makes the difference).
7. Use a Lender Who Understands Bridge Structures
Most lenders treat new builds differently than resale homes — especially with equity timing.
When your lender and your real estate agent collaborate, you can:
Secure conditional approval early.
Minimize contingency risk.
Avoid duplicate appraisals or redundant credit pulls.
As both a loan officer (Envision Home Lenders) and broker, I structure your financing to make your transition financially smooth and builder-compliant.
📄 Start your approval now: Get Pre-Approved
8. Marketing Your Current Home While You Build
While your new home is under construction, you can begin prepping your existing one for sale:
Schedule a pre-listing walkthrough 90–120 days before move-out.
Complete key updates (paint, flooring, curb appeal).
Pre-inspect your home if using a SureSale program to attract more buyers.
This allows you to sell for top dollar while minimizing overlap or last-minute stress.
Example: The Cedar Hill Move-Up
A family in Cedar Hill wanted to upgrade from their 2016 home into a new build in Red Oak.
Their equity: $140,000.
Builder deposit needed: $30,000.
We used a HomeSwap structure:
They accessed $80K in equity before listing.
Locked their builder contract at today’s pricing.
Sold their current home two months before closing.
They moved once, closed on time, and didn’t carry two mortgages.
Conclusion
Using your current home sale as the down payment for a new build in DFW is completely achievable — with the right structure, timing, and financing.
You don’t have to sell first, rent in between, or carry double payments.
The key is working with a professional who can align your sale, build, and loan from start to finish.
📈 Get Your Home Seller Score
🏡 Explore Home Selling Options
📅 Book a Home Goals Consultation
Key Takeaways
You can use equity from your home sale as a down payment on a new build.
Programs like HomeSwap, Cash Plus, and Sell & Stay make it possible to buy before you sell.
Coordinate builder, lender, and sale timelines early.
Get an accurate net sheet before signing your new build contract.
Work with a dual-licensed agent and lender to simplify the process.
