August 18, 2026
Most homeowners looking to move this summer are sitting on a small fortune — they just can’t reach it. Their wealth is locked inside the home they still live in, which means that when they go to buy their next place, they look cash-poor on paper even though they’re equity-rich. Helping clients unlock that equity before they sell is the single biggest edge you can give them in a tight late-summer market.
The short version: a client’s home equity can fund their next down payment, strengthen their offer, and pay for the move — but only if they can access it without selling first. Below are the main ways to do that, and how they compare.
This is one of five late-summer strategies in our End-of-Summer Buyer & Seller Strategy playbook.
Why equity is the late-summer advantage
After years of rising home values, the typical move-up seller has substantial equity — often the largest asset they own. In a season defined by tight timelines and cautious sellers, a buyer who can convert that equity into an upfront down payment can move faster and offer stronger than a buyer waiting on a sale to close.
The catch is access. The traditional path — list, sell, then shop — means moving twice and negotiating from a weak position. The better options let clients use their equity now.
The options, compared
Sell first, then buy
The safest-looking route is also the most disruptive. Clients get their cash, but they’re left renting or scrambling to find their next home, moving twice and paying for it. In a fast late-summer window, that timing rarely works cleanly.
A HELOC
A home equity line of credit lets homeowners borrow against their equity. But using one to buy a new home has real drawbacks: the added payment raises the client’s debt-to-income ratio, often shrinking the mortgage they qualify for, and it stacks a HELOC payment on top of two possible mortgages. Most buyers can’t carry that — and HELOCs come with variable rates and your home as collateral.
A traditional bridge loan
Traditional bridge loans do unlock equity, but they’re expensive — high interest rates and origination fees that can reach 3% of the loan — and risky: if the old home doesn’t sell, the client is stuck with the debt.
The Knock Bridge Loan™
The Knock Bridge Loan is a next-generation bridge loan built to fix those drawbacks. It lets a homeowner access up to $1,000,000 of their equity to use toward their next purchase — with 0% interest and no payments for up to six months, repaid only when the departing home sells. Clients can use it to:
Make a larger down payment
Buy down their interest rate and lower their monthly payment
Put up to ~$35,000 toward pre-sale home improvements
Cover up to six months of payments on the departing home
And it’s backed by the Knock Purchase Offer — a non-contingent backup offer — so if the old home doesn’t sell within six months, the client isn’t left holding two loans. In practice, 92% of Knock customers sell in under 90 days.
Give qualifying clients even more room with Bridge Loan Plus
For buyers whose debt-to-income ratio is the sticking point, Knock Bridge Loan Plus removes the departing mortgage from the DTI calculation — often the difference between qualifying for the home a client actually wants and settling for less. Knowing when to reach for it is part of matching the tool to the client; see who a bridge loan is best for.
Frequently asked questions
Can a homeowner use their equity to buy before they sell? Yes. Products like the Knock Bridge Loan let a homeowner access their existing equity — up to $1,000,000 — to put toward a new home before the current one sells, at 0% interest for up to six months.
Is a HELOC or a bridge loan better for buying a new home? A HELOC adds to the buyer’s debt-to-income ratio and carries variable rates, which can reduce how much home they qualify for. A next-generation bridge loan like Knock’s provides equity upfront at 0% interest and is backed by a guaranteed purchase offer, making it a cleaner fit for buying before selling.
How much equity can a client access with a Knock Bridge Loan? Up to $1,000,000, depending on the equity in the departing home, to use for a down payment, rate buy-down, improvements, or carrying costs.
What happens if the old home doesn’t sell? The Knock Purchase Offer serves as a non-contingent backup, so the client has a guaranteed buyer and isn’t left carrying two mortgages.
Want to see how much equity a client could put to work? Check your client’s eligibility for a Knock Bridge Loan.