Ribbon does not use one requirement to decide whether you qualify for Buy Before You Sell financing.
The lending team reviews your financial position, available equity, current home, proposed purchase and plan for selling and completing the financing.
This matters because many homeowners face a temporary timing problem.
You may be able to afford your next home comfortably after selling. Before the sale, however, your existing mortgage remains active and your equity is still tied up in the property.
Ribbon’s Buy Before You Sell program is designed for this transition. It allows qualified homeowners to purchase and own their next home before selling their current property.
Once approved, borrowers receive a Proof of Funds letter and can make an offer without a home-sale contingency. The offer is treated like a cash offer, and Ribbon offers closing timelines of approximately 15–30 days.
This guide covers the main factors Ribbon reviews and how you can prepare before applying.
For a broader look at the process and available financing routes, read How to Buy a House Before Selling Yours.
Key Takeaways
- Ribbon reviews the complete borrower, property and financing plan.
- There is no single universal equity, income or credit requirement that applies to every application.
- Usable equity matters more than the difference between your home’s value and mortgage balance.
- Ribbon considers likely selling costs when assessing expected net proceeds.
- Credit is reviewed alongside income, assets, debts and the proposed transaction.
- Both the current home and the next property must support the financing structure.
- You need a realistic strategy for selling your current home.
- The repayment or refinancing plan is a central part of approval.
- Meaningful equity strengthens an application but does not guarantee approval.
- Approved borrowers receive a Proof of Funds letter and can make an offer without a home-sale contingency.
- Ribbon borrowers own the new home from closing and do not enter a rent-back arrangement.
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.
What Do You Need to Qualify for Buy Before You Sell?
To qualify, you need a financial and property plan that supports the purchase, temporary financing and eventual sale of your current home.
Ribbon considers:
- Your credit history
- Income and employment
- Available assets
- Existing mortgage and other debts
- Usable equity
- Expected net sale proceeds
- The value and condition of your current home
- The property you want to purchase
- Your plan for listing and selling
- How the temporary financing will be repaid
- Whether long-term refinancing is required
There is no single factor that guarantees approval.
Strong equity can help, but the current home still needs a realistic route to sale. Good income can help, but the proposed purchase and repayment structure must remain workable.
Ribbon assesses how all these factors fit together.
Equity in Your Current Home
Equity is an important part of Buy Before You Sell qualification because the current home is expected to support the temporary financing and repayment plan.
Your total equity is the difference between the property’s estimated value and the debt secured against it.
For example, a home worth $600,000 with a $250,000 mortgage has approximately $350,000 in total equity.
That does not mean the homeowner has $350,000 available for the next purchase.
Ribbon focuses on usable equity and expected net sale proceeds.
How Usable Equity Is Calculated
Start with the realistic expected sale price. Then account for:
- Outstanding mortgage balance
- Other liens secured against the property
- Real estate commission
- Seller closing costs
- Repairs and sale preparation
- Buyer credits
- Property taxes and other adjustments
- A reasonable allowance for price negotiation
The amount remaining provides a more useful estimate of the proceeds available after the sale.
Using the previous example:
| Estimated sale calculation | Amount |
|---|---|
| Expected sale price | $600,000 |
| Mortgage payoff | $250,000 |
| Estimated selling costs and adjustments | $45,000 |
| Estimated net sale proceeds | $305,000 |
The figures are illustrative. Actual costs and proceeds depend on the property and sale.
Why the Expected Sale Price Matters
The financing plan should be based on a price the market can support.
Ribbon reviews factors such as:
- Recent comparable sales
- Current competing listings
- Property condition
- Location
- Expected demand
- Time on market
- Advice from the homeowner’s Realtor
An ambitious valuation can make the application appear stronger on paper while creating a repayment shortfall later.
A more conservative estimate provides a clearer view of whether the plan still works if the home sells for less than the initial asking price.
How Much Equity Does Ribbon Require?
Ribbon does not publish one universal equity percentage that applies to every borrower and transaction.
The amount needed depends on factors including:
- The value of the current home
- Existing mortgage and liens
- Expected net sale proceeds
- Purchase price of the next property
- Loan amount
- Borrower’s wider financial position
- Property costs
- Repayment and refinancing plan
Having substantial equity can strengthen an application, but it does not guarantee approval.
Ribbon still needs to confirm that the borrower, both properties and the complete exit strategy meet its requirements.
Credit and Your Wider Financial Profile
Ribbon reviews your credit as part of the complete application.
Credit history helps the lending team understand how you have managed borrowing and monthly obligations.
The review can include:
- Credit score
- Payment history
- Credit card balances
- Installment loans
- Mortgage history
- Late payments
- Collections
- Bankruptcies or foreclosures
- Recent credit applications
- Overall credit utilization
Ribbon does not publish one minimum credit score that applies to every Buy Before You Sell application.
A credit score is only one part of the decision. Ribbon also considers your income, assets, debts, equity, both properties and exit strategy.
This is important for homeowners whose current position does not fit neatly within conventional mortgage guidelines.
The purpose of Ribbon’s review is to determine whether the complete transaction provides a credible route from the temporary loan to the sale and long-term financing.
Does Strong Credit Guarantee Approval?
No.
Strong credit can support an application, but it does not confirm that the available equity, proposed purchase or repayment strategy will work.
Ribbon also needs to establish that:
- The current home has sufficient usable equity
- The expected sale price is realistic
- Both properties meet the program requirements
- The borrower can meet the approved obligations
- The temporary financing can be repaid or refinanced
Credit strengthens the overall picture. It does not replace the property and exit review.
Can Credit Issues Prevent Approval?
Credit issues can affect approval, available terms or the financing amount.
Their impact depends on the type, timing and seriousness of the issue, as well as the rest of the application.
Providing complete information upfront helps Ribbon assess the application accurately and avoid preventable delays. Newly identified debts or credit issues could affect the available financing or terms.
Income, Employment and Assets
Ribbon reviews whether you have the financial resources to complete the purchase and manage the approved transition.
The documentation depends on how you earn your income and how the financing is structured.
Ribbon can review income from sources such as:
- Employment
- Self-employment
- Business ownership
- Investments
- Retirement income
- Social Security
- Rental properties
- Other documented sources
The lending team also reviews assets that can support the purchase, closing costs, required reserves and continuing property expenses.
These can include:
- Checking and savings accounts
- Investment accounts
- Retirement accounts
- Saleable securities
- Business funds that can be used for the transaction
- Other verified liquid assets
Existing Debts and Housing Expenses
Ribbon considers your current financial obligations, including:
- Existing mortgage
- Home equity loans or HELOCs
- Car loans
- Credit card balances
- Student loans
- Personal loans
- Child support or alimony
- Property taxes
- Homeowners insurance
- Homeowners association fees
- Other recurring debts
The existing mortgage is often the reason a homeowner is considering Buy Before You Sell financing.
Ribbon assesses that obligation within a plan built around selling the current property. It does not assume the borrower intends to carry both homes permanently.
This allows the lending team to assess a temporary transition that a traditional mortgage application may not accommodate as effectively.
Why Financial Reserves Matter
A realistic plan accounts for costs that continue until the current home sells.
These can include:
- Property taxes
- Insurance
- Utilities
- Maintenance
- Homeowners association fees
- Repairs
- Sale preparation
Qualified Ribbon borrowers can skip overlapping mortgage payments for up to three months. This helps manage cash flow during the transition.
Ribbon still reviews whether the complete financing plan remains workable if the sale takes longer than expected.
What Ribbon Reviews About Your Current Home
Your current home is an important part of the financing and repayment plan.
Ribbon reviews factors that affect its value, available equity and likely sale timeline.
These can include:
- Property type
- Location
- Estimated market value
- General condition
- Current mortgage balance
- Other liens
- Title issues
- Proposed listing price
- Planned listing date
- Expected buyer demand
- Recent comparable sales
- Issues that could delay the sale
The property does not need to be fully renovated or already under contract before you apply.
It needs a credible route to sale.
That means the proposed value, preparation, pricing and marketing plan should be realistic for the local market.
Does Your Home Need to Be Listed Before You Apply?
Ribbon reviews the planned sale as part of the application.
Your home does not necessarily need to be listed before the initial conversation. However, Ribbon needs to understand when it will be prepared and placed on the market.
Applying before the home is listed can give you time to confirm the financing before making an offer on the next property.
The final requirements depend on your approved transaction and loan conditions.
Questions About Your Current Home
Be prepared to answer questions such as:
- Have you spoken with a Realtor?
- What is the expected listing date?
- How was the estimated value calculated?
- Which recent comparable sales support the price?
- Does the property need repairs before listing?
- Are there title issues or liens?
- How long are similar homes taking to sell?
- How much flexibility is available on the asking price?
- What will you do if the sale takes longer?
These questions help Ribbon assess whether the expected proceeds and timeline support the financing plan.
If timing is a concern, read What Happens If Your Home Doesn’t Sell in Time?.
What Ribbon Reviews About Your Next Home
The property you want to purchase also forms part of the application.
Ribbon reviews factors including:
- Purchase price
- Appraised value
- Property type
- Location
- General condition
- Intended occupancy
- Insurance availability
- Requested financing amount
- Whether the property fits an available loan program
- Proposed long-term financing
The new property needs to support both the temporary purchase and the financing planned after the existing home sells.
Substantial equity in the current home does not automatically make every new property or purchase price suitable.
Ribbon considers whether the property, loan amount and long-term financing work with the borrower’s complete financial position.
Why the Appraisal Matters
The appraisal provides an independent opinion of the new property’s market value.
If the appraised value is lower than the purchase price, the financing structure can change. The borrower could need additional funds, a revised purchase price or another approved solution.
Appraisal provisions and a home-sale contingency are different parts of a purchase contract.
Ribbon removes the dependency on selling the current home first. Any appraisal terms included in the offer should be discussed separately with your Realtor or attorney.
Both Properties Need to Support the Plan
Buy Before You Sell financing connects two properties and two transactions.
The current home provides the planned sale and expected equity. The next home becomes the property you purchase and own from closing.
Ribbon reviews them together to confirm that the transition has a workable beginning, middle and end.
There’s More Than One Way to Move
Ribbon offers flexible solutions designed to help homeowners buy, sell, and transition with less stress.
Your Sale, Repayment and Refinancing Plan
Ribbon Buy Before You Sell provides temporary financing.
The application therefore needs a clear plan for what happens after the current home sells.
Ribbon reviews:
- When the property will be listed
- How it will be priced and marketed
- Expected time on the market
- Estimated net sale proceeds
- Which debts will be repaid from the sale
- How the temporary financing will be repaid
- Whether long-term refinancing is required
- What happens if the sale price is lower than expected
- What happens if the property takes longer to sell
This is sometimes called the exit strategy.
A strong exit strategy does not depend on the highest possible sale price or the fastest possible closing. It uses realistic figures and allows room for normal selling costs and delays.
Repaying the Temporary Financing
After the current home sells, the proceeds are used according to the approved financing plan.
This generally involves repaying some or all of Ribbon’s temporary financing.
Ribbon Buy Before You Sell financing has no prepayment penalty.
The loan documents confirm how the proceeds will be applied and whether any financing remains after the sale.
Moving Into Long-Term Financing
Some borrowers transition into a long-term mortgage after selling their current property.
Future refinancing still requires approval and depends on the borrower’s financial position, property value, interest rates and available loan terms at that time.
Ribbon therefore considers whether the expected long-term structure is realistic when reviewing the initial application.
The goal is not only to complete the next purchase. The full plan must provide a credible route from buying first to repaying the temporary financing and, where required and separately approved, transitioning into long-term financing.
Planning for a Slower Sale
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 availability of an extension provides more time, but it does not replace a realistic pricing and marketing strategy.
If the sale takes longer than expected, contact Ribbon before the initial term ends and review the property’s price, presentation and buyer feedback with your Realtor.
How the Requirements Work Together
Ribbon does not assess the application as a series of isolated pass or fail tests.
The lending team considers how the borrower, equity, properties and exit strategy support one another.
For example:
- Strong equity can support the financing, but the current home still needs a credible sale plan.
- Good credit can strengthen the application, but the purchase price still needs to be workable.
- Reliable income can support affordability, but both properties must meet the program requirements.
- A desirable current home can support the exit strategy, but expected proceeds must account for selling costs.
- A clear refinancing plan can strengthen the application, but future qualification still needs to be realistic.
This complete review allows Ribbon to consider situations that do not fit neatly within a traditional mortgage application.
Can You Qualify to Buy Before You Sell?
You could be a suitable candidate if:
- You own a home with meaningful usable equity
- You have found or plan to purchase another property
- Your existing mortgage is affecting traditional qualification
- You expect to afford the next home comfortably after selling
- Your current property has a realistic route to sale
- You can document your income, assets and debts
- You understand the temporary financing costs
- You have a clear repayment or refinancing plan
You do not need to decide for yourself whether every part of the application is perfect before contacting Ribbon.
Ribbon can review the complete situation and identify whether Buy Before You Sell provides a workable financing route.
For a comparison with standard purchase financing, read Buy Before You Sell vs a Traditional Mortgage.
What Ribbon’s Lending Team Commonly Sees
Ribbon regularly speaks with homeowners who have substantial equity and expect to afford their next home after selling, but face a qualification problem before the sale closes.
The issue is often temporary.
The existing mortgage remains active. The expected sale proceeds are unavailable. The borrower’s financial position therefore looks different today than it will after the current home sells.
Ribbon’s Buy Before You Sell program is built for this gap.
A well-prepared application helps the lending team understand:
- The realistic value of the current home
- Existing mortgages and liens
- Expected selling costs
- Planned listing date
- Likely sale timeline
- Estimated net proceeds
- Purchase price of the next home
- Borrower’s financial capacity during the transition
- Proposed use of the sale proceeds
- Repayment or refinancing plan
Providing clear information early helps Ribbon identify potential obstacles before they affect the purchase.
Common Issues That Can Delay the Review
Applications can take longer when:
- The current home valuation is unsupported
- Mortgage or lien information is incomplete
- Income documents are missing
- Bank statements do not show the source of funds
- The sale plan has no realistic timeline
- The new property details are unavailable
- Debts are not fully disclosed
- The refinancing plan is unclear
- Title or ownership issues remain unresolved
These issues do not automatically mean the application will be declined.
They mean Ribbon needs more information before confirming whether the complete transaction works.
How to Prepare Before Contacting Ribbon
You do not need to complete the underwriting process yourself.
Gathering the main information in advance can make the first review more productive and help the lending team assess your options more quickly.
Information About Your Current Home
Prepare:
- Latest mortgage statement
- Details of other loans or liens
- Estimated property value
- Realtor valuation or comparable sales
- Current property tax information
- Homeowners insurance details
- Homeowners association information, when applicable
- Expected listing date
- Likely asking price
- Known repair or title issues
Information About the Next Home
If you have already found a property, prepare:
- Property address
- Purchase price
- Proposed closing date
- Property type
- Intended occupancy
- Purchase contract, when available
- Details of the long-term financing you expect to use
If you have not chosen a property, Ribbon can begin with your expected price range and purchasing goals.
Financial Information
Be ready to provide:
- Government-issued identification
- Income documentation
- Employment information
- Bank statements
- Investment or retirement statements
- Current debt balances
- Monthly payment information
- Credit authorization
- Details of funds available for closing
Self-employed borrowers can need additional business and tax documentation.
Ribbon confirms the documents required for each application.
Questions to Ask Ribbon
Use the initial conversation to confirm:
- Whether the program is available in your state
- Which properties are eligible
- How much financing is available
- Which conditions remain before approval
- How the Proof of Funds letter works
- Expected closing timeline
- Program fees and lender costs
- When payments begin
- How sale proceeds will be applied
- Whether refinancing is required
- What happens if the current home takes longer to sell
Clear answers at the beginning make it easier to evaluate the complete financing plan rather than one feature in isolation.
What If You Are Not Sure You Qualify?
Do not assume that your current mortgage automatically prevents you from buying first.
It is also important not to assume that having substantial equity guarantees approval.
Buy Before You Sell qualification depends on how your financial position, current home, proposed purchase and exit strategy work together.
You do not need to calculate every lending ratio or design the financing structure before contacting Ribbon.
Start by gathering:
- Your latest mortgage balance
- A realistic estimate of your home’s value
- Expected selling costs
- Basic income and asset information
- Details of your current debts
- Your next home budget
- Expected listing date
- Proposed repayment or refinancing plan
Ribbon can then review the complete situation and confirm whether Buy Before You Sell provides a suitable route.
A homeowner who does not qualify for another traditional mortgage while carrying the current property may still have a workable Buy Before You Sell application, subject to Ribbon’s complete underwriting and property review.
The purpose of Ribbon’s review is to identify whether the problem is temporary and whether the current home sale creates a credible route to repayment and long-term financing.
The Bottom Line
Ribbon’s Buy Before You Sell requirements are not based on one credit score, equity percentage or income threshold.
Ribbon reviews:
- The borrower’s financial position
- Usable equity
- Expected net sale proceeds
- Current mortgage and debts
- Current property
- Proposed purchase
- Sale strategy
- Repayment or refinancing plan
This complete review allows Ribbon to help qualified homeowners whose existing mortgage, tied-up equity or sale timing prevents them from purchasing first through a traditional mortgage alone.
After approval, Ribbon provides a Proof of Funds letter. Borrowers can make an offer without a home-sale contingency and have it treated like a cash offer.
They purchase and own the new home from closing, continue using their chosen Realtor and sell the previous property without a Ribbon rent-back arrangement.
The best way to determine whether you meet the requirements is to let Ribbon review the complete transaction.
Find Out If You Meet the Buy Before You Sell Requirements
Your current mortgage does not have to prevent you from securing your next home.
Ribbon reviews your equity, financial position, both properties and sale plan to determine whether Buy Before You Sell provides a workable route.
Approved borrowers receive the financing and Proof of Funds needed to buy before selling, while retaining ownership and control throughout the move.
FAQs
What are the main Buy Before You Sell requirements?
Ribbon reviews your credit, income, assets, debts, usable equity, current home, proposed purchase and exit strategy.
The lending team considers how these factors work together. There is no single requirement that guarantees approval.
How much equity do I need for Buy Before You Sell?
Ribbon does not publish one universal equity percentage for every application.
The required equity depends on the current property value, existing mortgage and liens, expected selling costs, next home purchase, requested financing and repayment plan.
Ribbon focuses on usable equity and likely net sale proceeds rather than the headline equity figure alone.
Does Ribbon require a minimum credit score?
Ribbon reviews credit as part of the complete application but does not publish one minimum score that applies to every Buy Before You Sell transaction.
Credit is considered alongside your income, assets, debts, equity, both properties and exit strategy.
Can my current mortgage affect qualification?
Yes. Your current mortgage can affect how much you qualify to borrow through a traditional mortgage.
Ribbon’s program is designed for homeowners facing this temporary issue. Ribbon assesses the existing mortgage within a financing plan built around selling the current property.
Approval still depends on the complete borrower, property and financing review.
Does my current home need to be listed before I apply?
Your current home does not necessarily need to be listed before your initial conversation with Ribbon.
Ribbon needs to understand when the property will be prepared and listed, how it will be priced and whether there is a realistic route to sale.
The approved transaction and final loan conditions determine the specific listing requirements.
Can I use my current home equity toward the new purchase?
Ribbon considers your available equity and expected net sale proceeds when structuring the approved financing.
The amount available depends on the property value, mortgage payoff, liens, selling costs and the rest of the transaction.
Total equity is not automatically the amount available to use.
What documents does Ribbon require?
The exact documents depend on your financial position and approved transaction.
Ribbon can request:
- Mortgage statements
- Income and employment documents
- Bank and investment statements
- Details of current debts
- Property information
- Insurance and tax records
- Valuation or comparable sales
- Purchase contract
- Information about the sale and refinancing plan
Ribbon confirms the required documents during the application.
Does substantial equity guarantee approval?
No. Substantial equity can strengthen an application, but it does not guarantee approval.
Ribbon also reviews credit, income, assets, debts, both properties and the complete repayment or refinancing plan.
What do approved Ribbon borrowers receive?
Approved borrowers receive dedicated Buy Before You Sell financing and a Proof of Funds letter.
They can make an offer without a home-sale contingency and have it treated like a cash offer. Ribbon offers closing timelines of approximately 15–30 days.
Borrowers purchase and own the new home from closing. There is no Ribbon rent-back arrangement.
