Yes, you can buy a new home before you sell your current one. The catch is your debt-to-income ratio (DTI). If you sell after you close on the new home, the lender usually has to count both your current house payment and the new one. Fannie Mae lets the lender leave out the old payment only if your file has a signed sales contract for your current home and proof that any financing contingency has been cleared. A bridge loan works the same way: its payment is counted as a debt unless you have that same paperwork.
Many Nashville, Franklin, and Brentwood buyers face this. You find the right house, but your current home is not sold yet. Lenders do not guess. They look at what you owe each month right now. DTI is all your monthly debt payments, including the new house payment, divided by your monthly income before taxes.
| Where your old home stands | Is the old payment counted? (Fannie Mae) |
|---|---|
| Not listed, or listed with no buyer | Yes. Both payments count. |
| Under contract, but the buyer's loan contingency is still open | Yes. Both payments count. |
| Signed sales contract and financing contingency cleared, but you close on the new home first | No. The lender can leave the old payment out if both papers are in your file. |
| Old home closes (title transfers) before the new purchase | No. You no longer own it. |
A "payment" here means your full monthly housing cost on the old home: principal, interest, taxes, insurance, and any association dues. A sign in the yard does not change how it is counted.
A bridge (or swing) loan lets you use cash from your current home to close on the new one before the old one sells. Fannie Mae treats the bridge loan as a contingent liability, so its payment goes into your DTI. Fannie Mae can waive this if your file has the same two papers: the signed sales contract on your current home and confirmation that any financing contingencies have been cleared.
Want to see what a new payment could look like? Try the free mortgage calculators. They are estimates only, not a loan offer.
To see how DTI turns into a price range, read How much house can I afford in Franklin, TN?
Yes. The lender will usually count both your old house payment and the new one in your DTI, unless your old home has a signed sales contract and the buyer's financing contingency is cleared.
For Fannie Mae loans, when your file has the signed sales contract for your current home and confirmation that any financing contingencies have been cleared.
Yes. Fannie Mae counts a bridge loan as a contingent liability in your DTI. It can be waived with a signed sales contract and cleared financing contingencies on your current home.
No. Listing alone does not change the count. You need a signed sales contract and a cleared financing contingency.
Then you no longer own it, so its payment is not part of your DTI.
Talk with a loan officer before you make an offer, so you know if you can carry two payments for a while.
Planning to buy before you sell? Call me at (615) 495-6594, email travis@heathrowmtg.com, or start an application.
Figures checked November 9, 2026. Rules and rates can change. Examples are for illustration only and are not a loan offer.
