One of the first questions homeowners ask is how much it costs to buy before you sell.
The more useful question is what those costs actually replace.
For applicable short-term loans originated directly through Ribbon by Hurst Lending, the Buy Before You Sell program charges a 1.0%–1.5% origination fee plus normal lender fees.
You can also review Ribbon’s current pricing before requesting a personalized quote.
The applicable percentage, interest rate and complete loan terms depend on the approved transaction. Ribbon confirms the pricing before closing so the homeowner can evaluate the complete financing plan.
Ribbon confirms the applicable pricing during the approval process so the homeowner can evaluate the complete transaction before closing.
The fee provides more than temporary financing.
It gives qualified homeowners the ability to:
- Purchase their next home before selling
- Make an offer without a home-sale contingency
- Have the offer treated like a cash offer
- Receive a Proof of Funds letter
- Own the new home from closing
- Move once
- Avoid temporary accommodation and storage
- Prepare the previous property for sale after moving
- Keep their chosen Realtor
- Retain control of the existing home sale
- Repay the temporary financing or, where separately approved, transition into long-term financing after the property sells
Buy Before You Sell financing is therefore a trade-off between cost and control.
Proceeding directly with a traditional mortgage may involve lower upfront financing costs when the homeowner already qualifies while retaining the existing property and has accessible funds for the purchase.
Ribbon becomes valuable when the existing mortgage, tied-up equity or sale timeline prevents the homeowner from buying first through traditional financing alone.
This guide explains the direct fees, lender costs and continuing property expenses you should consider. It also shows what the financing provides in return and which questions to ask before closing.
For the complete purchase and sale process, read How to Buy a House Before Selling Yours.
Key Takeaways
- Ribbon generally charges 1.0%–1.5% of the loan amount for Buy Before You Sell financing originated directly by Ribbon by Hurst Lending.
- Normal lender closing costs also apply and support the underwriting, valuation and completion of the loan.
- The exact pricing depends on the approved transaction and is confirmed before closing.
- Interest and loan-specific expenses should be evaluated alongside the period of flexibility they provide.
- Some costs of owning the previous property can continue until it sells.
- Qualified borrowers can skip overlapping mortgage payments for up to three months, helping manage cash flow during the move.
- Buy Before You Sell financing can replace temporary accommodation, storage and a second move.
- Buying first can give homeowners time to prepare and market the previous property after moving out.
- Ribbon does not automatically purchase the current home or force an immediate discounted sale.
- The right comparison is not fee versus no fee. It is the complete cost and outcome of each available moving strategy.
Why You Can Trust This Guide
This guide has been reviewed by the lending team at Ribbon by Hurst Lending. Since 2000, we’ve helped retirees and homeowners navigate complex financing decisions, including buying a new home before selling their current one. The guidance in this article reflects the questions we regularly hear from borrowers comparing home equity loans, bridge loans, and Buy Before You Sell financing, along with our experience helping homeowners choose the structure that best fits their move.
How Much Does Ribbon Buy Before You Sell Cost?
For loans originated directly by Ribbon by Hurst Lending, the Buy Before You Sell fee is generally 1.0%–1.5% of the loan amount.
The fee is based on the amount borrowed, not necessarily the purchase price of the new home.
For example:
| Loan amount | Fee at 1.0% | Fee at 1.5% |
|---|---|---|
| $300,000 | $3,000 | $4,500 |
| $500,000 | $5,000 | $7,500 |
| $750,000 | $7,500 | $11,250 |
| $1,000,000 | $10,000 | $15,000 |
These examples are illustrative. They do not represent a loan quote or guarantee that every borrower will receive pricing at either end of the range.
Ribbon confirms the applicable fee during the approval process.
This gives the homeowner an opportunity to compare the cost with the control and flexibility the financing provides before deciding whether to proceed.
What Does the Ribbon Fee Provide?
The fee supports a financing structure designed around buying first and selling afterward.
For qualified borrowers, this includes:
- Dedicated financing for the purchase
- A Proof of Funds letter
- The ability to make an offer without a home-sale contingency
- Cash-offer treatment from the seller’s perspective
- Closing timelines of approximately 15–30 days
- Ownership of the new home from closing
- Time to move before selling the previous property
- No Ribbon rent-back arrangement
- No prepayment penalty
- An approved repayment plan built around the expected sale, including any separately approved long-term financing
The fee therefore pays for a specific solution to a timing and qualification problem.
It is not simply an additional charge added to a traditional mortgage that already allows the homeowner to complete the same move.
Why Does the Exact Percentage Vary?
The final fee depends on the approved transaction.
The final percentage and loan terms depend on the approved transaction. Ribbon confirms the fee in both percentage and dollar terms before closing.
Ribbon confirms the exact pricing and loan terms before closing.
Ask for the complete cost in dollars as well as percentages. This makes it easier to compare Ribbon with the realistic alternatives available for your move.
Normal Lender Closing Costs
Normal lender closing costs apply in addition to Ribbon’s 1.0%–1.5% fee.
These costs support the work required to assess, document and complete the financing.
They can include:
- Appraisal
- Credit report
- Underwriting
- Title services
- Escrow services
- Recording charges
- Prepaid taxes
- Prepaid homeowners insurance
- Other loan-specific charges
The exact items depend on the properties, location and approved financing.
Some of these expenses may also apply when obtaining a traditional mortgage. They are not all unique to Buy Before You Sell financing.
Why the Loan Estimate Matters
Review the Loan Estimate rather than relying only on the headline percentage.
It should help you understand:
- Ribbon’s fee
- Interest rate
- Estimated interest
- Lender charges
- Third-party services
- Prepaid items
- Cash needed for closing
- Estimated monthly payment
- Which charges could change
- Which services you may be able to shop for
This provides a clearer comparison between the cost of the financing and the flexibility it creates.
Ask Ribbon to explain any item you do not understand before closing.
How Does Ribbon’s Fee Compare With Other Buy Before You Sell Programs?
Ribbon’s 1.0%–1.5% fee can be lower than the headline fees published by some alternative providers.
As of August 2026, UpEquity’s published Trade Up materials state that its Equity Advance includes a 2% origination fee plus a separate one-time convenience fee. Its document also notes that fees are subject to change and additional charges may apply.
This compares with Ribbon’s 1.0%–1.5% fee for loans originated directly by Ribbon by Hurst Lending.
The percentage is only one part of the comparison.
Buy Before You Sell providers use different structures. Depending on the company, the program could involve:
- An origination fee
- A separate convenience or service fee
- Interest and lender closing costs
- Required use of an affiliated mortgage provider
- Conditional fee credits
- The provider purchasing the new home
- A temporary rent-back arrangement
- A guaranteed purchase of the existing property
- Restrictions affecting how the previous home is sold
Some providers advertise a higher standard fee but offer credits when the customer uses an affiliated mortgage or real estate service.
A credit can reduce the final amount paid, but it can also make the comparison more complicated.
Compare the complete written proposal, including:
- Total fee in dollars
- Origination percentage
- Convenience or service fees
- Interest
- Normal lender closing costs
- Conditions attached to fee credits
- Required affiliated services
- Whether you own the new home from closing
- Whether rent-back payments apply
- Who controls the existing property sale
- What happens if the home takes longer to sell
Ribbon borrowers purchase and own the new home from closing.
They retain control of the previous property, keep their chosen Realtor and are not automatically required to sell the home to Ribbon at a discounted price.
Ribbon also provides qualified borrowers with options to skip overlapping mortgage payments for up to three months, helping manage cash flow during the transition.
This combination of competitive pricing, ownership and control is central to the value of Ribbon’s program.
Competitor fees and terms can change. Confirm current pricing and compare written quotes for your specific transaction before deciding which option provides the best complete outcome.
What Other Buy Before You Sell Costs Should You Consider?
Ribbon’s 1.0%–1.5% fee is only one part of the complete financing picture.
Homeowners should also consider normal lender closing costs, interest, continuing property expenses and any future refinancing costs.
These expenses should be compared with the flexibility they provide and the alternative costs the homeowner could otherwise face.
Interest and Loan-Specific Costs
Interest applies according to the approved loan amount, rate and period the financing remains active.
The total interest paid can therefore depend on how quickly the previous home sells and when the temporary financing is repaid or refinanced.
Ribbon Buy Before You Sell financing has no prepayment penalty.
This gives homeowners the flexibility to repay the temporary financing after the sale without an additional penalty for completing early.
Ask Ribbon to explain:
- The interest rate
- How interest is calculated
- When interest begins
- When payments begin
- Whether interest is paid monthly or handled another way
- How an earlier sale affects the total amount paid
- Which costs apply if the term is extended
Understanding these figures helps the homeowner compare the cost of borrowing with the value of purchasing and moving before selling.
Continuing Costs on Your Current Home
You remain responsible for the previous property until it sells.
Continuing expenses can include:
- Property taxes
- Homeowners insurance
- Utilities
- Homeowners association fees
- Maintenance
- Cleaning
- Landscaping
- Repairs
- Security
- Preparing and marketing the property
Qualified Ribbon borrowers can skip overlapping mortgage payments for up to three months.
The approved loan documents confirm when payments begin and how interest and other financing costs are handled. Skipping scheduled payments does not necessarily mean that every associated cost is waived.
This can help manage cash flow during the transition, while giving the homeowner time to move and prepare the previous property for sale.
Other ownership expenses can still continue.
The benefit is that the homeowner can present an unoccupied or less cluttered property, make showings easier and sell without coordinating every appointment around daily family life.
Potential Refinancing Costs
Some borrowers transition into a long-term mortgage after selling their previous home.
Future refinancing may involve:
- Lender charges
- Appraisal
- Title services
- Recording fees
- Prepaid taxes and insurance
- Other closing expenses
The exact costs depend on the future loan and market conditions.
For some borrowers, separately approved refinancing may provide a route from temporary Buy Before You Sell financing into a long-term mortgage.
Ask Ribbon whether refinancing is expected, which conditions may apply and which future expenses should be included in your comparison.
Future approval, interest rates and loan terms cannot be guaranteed at the beginning of the Buy Before You Sell transaction.
There’s More Than One Way to Move
Ribbon offers flexible solutions designed to help homeowners buy, sell, and transition with less stress.
What Do You Get in Return for the Cost?
Buy Before You Sell financing is designed to provide control over the order and timing of the move.
Without it, homeowners who cannot qualify while retaining their current property may need to sell first.
That approach can reduce financing costs, but it can introduce other expenses and compromises.
Ribbon allows qualified homeowners to purchase first, move once and sell the previous property afterward.
Avoiding Temporary Accommodation
Selling first can leave a gap between moving out of the current home and completing the next purchase.
Temporary accommodation could involve:
- Short-term rent
- Hotel stays
- Application or booking fees
- Utility setup
- Pet charges
- Commuting changes
- Additional deposits
- Limited flexibility around move-out dates
Buy Before You Sell financing can replace this temporary stage by allowing the homeowner to move directly into the new property.
The value is not only the accommodation expense avoided. It is also the stability of knowing where the household will live during the transition.
Avoiding Storage and a Second Move
Selling before buying can mean placing furniture and belongings into storage.
The homeowner may then pay for:
- Removal into temporary accommodation
- Storage
- Insurance for stored belongings
- A second removal into the new home
- Additional packing materials
- Time away from work
- Cleaning at multiple properties
Ribbon allows qualified homeowners to move directly from the previous home into the next one.
The financing fee should therefore be compared with the complete cost, time and disruption of moving twice.
Securing the Preferred Home
Waiting for the current property to sell can mean delaying the search or losing a suitable home while the sale is still in progress.
Ribbon provides approved borrowers with a Proof of Funds letter and the ability to make an offer without a home-sale contingency.
This can strengthen the offer and give the homeowner access to properties that may not remain available until their existing sale closes.
Ribbon cannot guarantee that an offer will be accepted.
The value is the ability to compete for the preferred home without making the purchase dependent on another property transaction.
Preparing the Previous Home After Moving
Selling an occupied home can require homeowners to:
- Keep rooms consistently tidy
- Leave during showings
- Coordinate appointments around work and family
- Manage pets
- Limit packing
- Delay repairs
- Present the property while preparing to move
Buying first allows the family to move before completing the sale.
The previous property can then be cleaned, repaired, photographed and shown without the same disruption to daily life.
This does not guarantee a faster sale or higher price.
It can provide a more practical environment for preparing and marketing the property.
Retaining Control of the Sale
Ribbon does not automatically purchase the previous home or force the homeowner to accept an immediate discounted offer.
The homeowner retains:
- Ownership of the property
- Their chosen Realtor
- Control of the listing strategy
- Input into the asking price
- Control over negotiations
- The decision about which offer to accept
The financing cost therefore provides time and control as well as access to capital.
This can be particularly valuable when selling quickly would otherwise require the homeowner to compromise on the property, timing or offer terms.
Cost Versus Control
The decision is not simply between paying a Ribbon fee and paying no fee.
The real comparison is between two complete moving strategies.
Selling First
This can be the lower-cost option when the homeowner can:
- Find the next home after selling
- Move directly between properties
- Avoid temporary accommodation
- Avoid storage
- Avoid moving twice
- Complete without rushing
- Find a seller willing to work with their timeline
Buying First With Ribbon
This can provide greater value when the homeowner wants to:
- Secure a particular property
- Make an offer without a home-sale contingency
- Move directly into the next home
- Prepare the previous home after moving
- Keep control of the sale
- Avoid a Ribbon rent-back arrangement
- Repay the temporary financing after the sale
Neither route is automatically better for every homeowner.
If you are deciding whether temporary financing is needed at all, read Buy Before You Sell vs. a Traditional Mortgage.
The right choice depends on the complete cost, practical disruption, property opportunity and degree of control each option provides.
How to Compare the Complete Cost of Buying First
A useful comparison should include more than Ribbon’s fee.
Calculate the likely cost and outcome of each realistic moving route.
Option 1: Sell First
Estimate:
- Temporary accommodation
- Storage
- First move
- Second move
- Additional cleaning
- Utility setup
- Travel or commuting changes
- Time away from work
- Any rent-back costs
- The practical effect of delaying the next purchase
Option 2: Buy First With Ribbon
Estimate:
- Ribbon’s 1.0%–1.5% fee
- Interest
- Normal lender closing costs
- Continuing property expenses
- Any extension cost
- Expected refinancing costs
- One direct move
- Any preparation needed before selling
Then compare what each route allows you to do.
The financial difference should be considered alongside:
- Whether you can secure the preferred home
- Whether you need temporary accommodation
- How many times you will move
- How easily the previous property can be shown
- How much control you retain over the sale
- How much timing pressure each route creates
Use Net Cost, Not the Headline Fee
The headline fee is not the same as the net difference between the two strategies.
A simple framework is:
Ribbon financing and carrying costs
minus expenses avoided by buying first
equals the estimated net cost of gaining control over the move
Expenses avoided could include temporary rent, storage and a second move.
The calculation should not assign an unsupported value to uncertain outcomes.
Do not assume that buying first will guarantee:
- A higher selling price
- A faster sale
- Acceptance of the first offer
- A particular interest rate
- A specific refinancing outcome
Focus on costs and benefits that can be reasonably estimated before closing.
Questions to Ask Before Closing
Before accepting Buy Before You Sell financing, ask Ribbon for a clear explanation of the complete transaction.
Questions About the Fee
Ask:
- What percentage applies to my loan?
- What is the fee in dollars?
- What determines the final percentage?
- When is the fee paid?
- Is the fee financed or paid at closing?
- Could the fee change before closing?
- Is any part refundable?
Questions About Interest and Payments
Ask:
- What is the interest rate?
- How is interest calculated?
- When does interest begin?
- When do payments begin?
- Can I skip overlapping mortgage payments?
- How does selling earlier affect the amount paid?
- Is there a prepayment penalty?
Ribbon Buy Before You Sell financing has no prepayment penalty.
Qualified borrowers can skip overlapping mortgage payments for up to three months, helping manage cash flow while the previous property is marketed and sold.
Questions About Closing Costs
Ask:
- Which lender charges apply?
- Which third-party services are required?
- Which costs may change?
- Which services can I shop for?
- How much cash will I need at closing?
- Which prepaid taxes and insurance amounts are included?
Review the Loan Estimate and ask for clarification before committing.
Questions About the Existing Home
Ask:
- How long do I have to sell?
- What costs continue while I own the property?
- How will the expected sale proceeds be used?
- What happens if the sale price is lower than expected?
- What happens if the property takes longer to sell?
- Which changes should I report to Ribbon?
- Can I continue using my chosen Realtor?
Ribbon’s standard Buy Before You Sell term is six months.
Qualified borrowers can extend the term to 11 months for a $500 fee, subject to their approved loan terms.
You retain ownership and continue working with your chosen Realtor.
For the complete response plan, read What Happens If Your Home Doesn’t Sell in Time?.
Questions About Repayment and Refinancing
Ask:
- How will the temporary financing be repaid?
- Is refinancing expected after the current home sells?
- Which future loan costs could apply?
- Which conditions must be met?
- What happens if future rates or loan terms change?
- How will the sale proceeds affect the long-term mortgage?
These questions help you evaluate the complete financing route instead of focusing on one fee in isolation.
Is Buy Before You Sell Worth the Cost?
Buy Before You Sell financing can be worth considering when the control and flexibility it provides are more valuable than the complete cost of the loan.
It may be a strong fit when:
- You have found the right next home
- You cannot qualify through a traditional mortgage while retaining your current property
- Your equity is tied up in the existing home
- The seller is unlikely to accept a home-sale contingency
- You want to avoid temporary accommodation
- You want to avoid storage and moving twice
- Moving first would make the previous home easier to prepare and show
- You want to retain control of the existing property sale
- You have a realistic plan for repaying or refinancing after the sale
It may provide less value when:
- You already qualify for a traditional mortgage while owning both homes
- You have enough accessible funds to complete the purchase
- You can sell first and move directly into the next property
- You do not need the Proof of Funds or non-contingent offer structure
- The financing costs are greater than the practical benefits in your situation
- The current home does not have a credible route to sale
- The repayment or refinancing plan is uncertain
The purpose of the comparison is not to prove that Buy Before You Sell is always the cheapest route.
It is to determine whether the financing solves a problem that would otherwise prevent or complicate the move.
What Ribbon’s Lending Team Commonly Sees
Homeowners often begin by comparing Ribbon’s fee with the cost of a traditional mortgage.
That comparison can be incomplete because the two financing routes may not allow the borrower to make the same move.
A traditional mortgage can be the better option when the homeowner:
- Qualifies while retaining the current property
- Has accessible funds for the purchase
- Can manage the overlap
- Does not need a home-sale contingency
Ribbon becomes relevant when those conditions do not exist.
The homeowner may have substantial equity and expect to afford the next home comfortably after selling. Before the sale, however, the equity remains tied up and the existing mortgage can affect traditional qualification.
In that situation, the fee provides a route through a temporary timing problem.
Ribbon’s lending team reviews whether:
- The available equity supports the financing
- The current property has a realistic route to sale
- The purchase price is workable
- The borrower can manage the approved transition
- Expected sale proceeds support repayment
- Long-term refinancing is realistic when required
This complete review helps the homeowner understand what the financing costs and what it makes possible.
The Bottom Line
Ribbon Buy Before You Sell financing generally costs 1.0%–1.5% of the loan amount for loans originated directly by Ribbon by Hurst Lending.
Normal lender closing costs, interest, continuing property expenses and potential refinancing costs can also apply.
In return, qualified homeowners receive a financing structure that allows them to:
- Buy before selling
- Submit an offer without a home-sale contingency
- Receive a Proof of Funds letter
- Have the offer treated like a cash offer
- Own the new home from closing
- Move once
- Avoid a Ribbon rent-back arrangement
- Prepare the previous home after moving
- Retain control of the existing sale
- Keep their chosen Realtor
- Repay the temporary financing without a prepayment penalty
Ribbon’s fee can also be lower than the headline fees published by some alternative providers.
The right comparison is not simply fee versus no fee.
Compare the total cost of each realistic moving strategy with the control, flexibility and outcome it provides.
If a traditional mortgage already allows you to buy first on workable terms, it may be the simpler and lower-cost option.
If tied-up equity, the existing mortgage or sale timing prevents the move, Ribbon can provide a practical route from the home you own today to the home you want next.
FAQs
How much does Ribbon Buy Before You Sell cost?
For loans originated directly by Ribbon by Hurst Lending, the fee is generally 1.0%–1.5% of the loan amount, plus normal lender closing costs.
The exact amount depends on the approved transaction.
In return, qualified homeowners receive dedicated financing and a Proof of Funds letter that allow them to purchase before selling.
Is Ribbon’s fee based on the purchase price?
Ribbon’s 1.0%–1.5% fee is based on the approved loan amount, not necessarily the complete purchase price.
Ask Ribbon to confirm both the percentage and dollar amount before closing.
This helps you compare the fee with the flexibility and moving expenses the financing can replace.
Are closing costs included in Ribbon’s fee?
No. Normal lender closing costs apply in addition to Ribbon’s fee.
These can include appraisal, credit, underwriting, title, escrow, recording and prepaid items.
The costs support the underwriting, property review and closing process required to provide the financing.
Is Ribbon cheaper than other Buy Before You Sell programs?
Ribbon’s 1.0%–1.5% fee can be lower than the headline fees published by some alternative providers.
For example, UpEquity’s published Trade Up materials describe a 2% origination fee for its Equity Advance plus a separate convenience fee.
Provider structures differ, and some companies offer conditional fee credits. Compare complete written quotes, required services, ownership structure and control of the existing sale.
Do I pay interest as well as Ribbon’s fee?
Interest applies according to the approved loan amount, rate and time the financing remains active.
The interest provides access to temporary financing that allows the homeowner to purchase and move before selling.
Ribbon confirms the rate, payment structure and estimated interest before closing.
What happens if my home does not sell within Ribbon’s initial six-month term?
Contact Ribbon before the initial term ends.
Provide an update covering the asking price, days on market, showing activity, buyer feedback, offers, changes already made and revised sale strategy.
Ribbon can then review the current position and available next steps under the approved financing.
Can I avoid overlapping mortgage payments?
Qualified Ribbon borrowers can skip overlapping mortgage payments for up to three months.
This can help manage cash flow while the homeowner moves and markets the previous property.
Other ownership expenses, including taxes, insurance, utilities and maintenance, can continue until the home sells.
Is there a prepayment penalty?
No.
Ribbon Buy Before You Sell financing has no prepayment penalty.
This allows homeowners to repay the temporary financing after selling without an additional penalty for completing early.
What happens if my existing home takes longer to sell?
Ribbon’s standard Buy Before You Sell term is six months.
Qualified borrowers can extend the term to 11 months for a $500 fee, subject to their approved loan terms.
The additional time provides flexibility, while the homeowner retains ownership and continues working with their chosen Realtor.
Is Buy Before You Sell worth the cost?
It can be worth the cost when the financing allows you to secure the preferred home, avoid temporary accommodation, move once and retain control of the previous property sale.
A traditional mortgage may be the better option when you already qualify while retaining the existing home and have accessible funds for the purchase.
Compare the complete cost and outcome of each realistic moving strategy.
Buy First With a Clear Understanding of the Cost
Ribbon confirms the applicable fee, lender costs, interest and approved financing structure before closing.
This allows you to compare the complete cost with what the program provides:
- A Proof of Funds letter
- An offer without a home-sale contingency
- Cash-offer treatment
- Ownership from closing
- One direct move
- Control of the previous home sale
- No Ribbon rent-back arrangement
- No prepayment penalty
The right question is not only what Buy Before You Sell costs.
It is whether the financing gives you a better and more manageable route to the home you want.
