Can I use my equity to buy another property?

The short answer

Yes. Equity from your current home can fund a down payment, but the new payment and the old one both count against your ratios.

4 min read

The common structures

You can draw a line of credit before listing, take cash out through a refinance, or sell first and carry proceeds forward. Each has a different effect on timing and on your debt ratio.

A line drawn before you buy is often the most flexible, because it is in place and ready when the right property appears.

Qualifying for both

Unless the first home is sold or has a documented lease, underwriting counts both housing payments. That is usually the real constraint, not the down payment.

Run the two payment scenario before you shop, so you know whether you are a contingent buyer or a genuinely independent one.

Corie Adams Lending Team

Corie Adams
Producing Branch Manager · NMLS #1875205
Network Funding, LP · NMLS ID #2297

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Corie Adams Lending Team is a branch of Network Funding, LP. Network Funding, LP, NMLS ID #2297, is an Equal Housing Opportunity Lender. Licensing and state disclosures are available through Disclosures & Licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org). This website is not a commitment to lend. Rates, programs, payments, and qualification requirements are subject to change without notice and may vary based on individual circumstances.

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