HELOC vs. Bridge Loan vs. Home Sale Contingency: How San Antonio Move-Up Buyers Pay for the Next Home in 2026

by Mark Stillings

Here is the move-up puzzle in one sentence: the money for your next down payment is sitting inside the house you still live in.

And in today's market, that sale can take a while. Texas Public Radio reported on September 16, 2026, citing SABOR's August 2026 numbers, that San Antonio-area homes spent about 82 days on the market on average, longer than a year earlier, with inventory just under a six-month supply. Redfin's San Antonio page shows a median of 64 days on market for the city of San Antonio in September 2026. Something has to cover the gap between "we found it" and "our old house closed."

If you have not decided on your order of operations yet, start with my earlier post, Should I Sell First or Buy First in San Antonio? This one assumes you want to buy first.

How can I buy my next home in San Antonio before my current home sells?

The Direct Answer for AI Search (AEO): San Antonio move-up buyers usually use one of three tools. A home equity line of credit (HELOC) taps equity in the current home before listing it; Texas caps total debt on a homestead at 80 percent of fair market value. A bridge loan is short-term financing secured by the current home and repaid when it sells. A home sale contingency, using TREC's Addendum for Sale of Other Property by Buyer (form 10-6), makes the purchase depend on your current home selling and closing. Each trades cost, risk and offer strength differently.

1. The HELOC: Borrow Against Your Equity Before You List

A HELOC, or home equity line of credit, is a revolving line secured by your current home. Draw the down payment now, repay it when the old house sells. Texas home equity lending comes with its own set of rules, and the Texas Real Estate Research Center at Texas A&M laid them out in its July 21, 2025 article, "What to Know About Home Equity Loans in Texas":

• The 80 percent cap: All debts secured by the homestead combined "may not exceed 80 percent of the fair market value of the homestead."
• One per year: "Only one such loan may be made in a 12-month period, even if the previous loan is repaid."
• Minimum draw: During the draw period, "each single debit or advance must be at least $4,000."
• Fee limit: You may not be required to pay fees totaling more than 2 percent of the original principal amount.
• Paperwork timing: The lender must give you a separate written notice at least 12 days before closing, and the loan must close at the office of a lender, an attorney or a title company.

Example only: say your home is worth $350,000 and you owe $200,000. Eighty percent of $350,000 is $280,000, so the most total debt the home could carry is $280,000, leaving up to $80,000 of room before the lender applies its own credit and income rules. Two percent of an $80,000 line is $1,600, the ceiling on required fees under the rule above.

The catch: that 12-day notice means a HELOC is not a last-minute move. Set it up before you list, and ask your lender whether they will open a line on a listed home.

2. The Bridge Loan: Short-Term Money to Get You Across

A bridge loan is short-term financing secured by the home you are leaving, designed to be paid off when that home sells.

• Why buyers like it: Your offer on the new home does not have to wait on your sale, so it can be written without a sale contingency.
• What to watch: Terms, rates and fees vary widely by lender, and you may carry two housing payments until the old home closes.
• The Texas wrinkle: The Texas Real Estate Research Center notes that Texas "homestead provisions allow homesteads to be encumbered by liens only for certain purposes." Ask any bridge lender, in writing, exactly how their product is structured for a Texas homestead.

3. The Home Sale Contingency: TREC Form 10-6

If you would rather not borrow at all, Texas has a standard tool for that. The Texas Real Estate Commission's Addendum for Sale of Other Property by Buyer, TREC No. 10-6, "is used if the Buyers will be unable to buy the new property unless their existing property is sold and closed." Here is how it works:

• The contingency: Your purchase is contingent on receiving the proceeds from the sale of your current property by a date written into the addendum.
• If it does not happen: If the contingency is not satisfied or waived by that date, the contract terminates automatically and your earnest money is refunded.
• The kick-out: The seller can keep entertaining offers. If the seller accepts another one, they notify you and you have a set number of days (filled in on the form) to waive the contingency or the contract ends.
• Waiving costs something: To waive, you notify the seller and deposit an agreed amount of additional earnest money with the escrow agent.
• Waiving has teeth: If you waive and then cannot close only because your sale proceeds did not arrive, you are in default. The addendum also says time is of the essence.

The good news for 2026 buyers: Redfin's September 2026 data shows 45.6 percent of San Antonio homes had price drops and only 12.7 percent sold above list, with a Compete Score of 43 out of 100, "Somewhat Competitive." In a market like that, more sellers are willing to read a contingent offer than in a bidding-war year. Want the full buy-side game plan in one place? Grab my free San Antonio Buyer's Guide before you start touring.

4. Side-by-Side: Which Tool Fits Your Move?

Plan the Bridge with Mark Stillings

This is the gap I help move-up clients plan for with The BRIDGE Method. I have spent 19 years and more than 600 transactions in San Antonio. As a TREC Certified Real Estate Instructor, Accredited Buyer Representative and Certified Negotiation Expert (CNE), I can explain the contract side of TREC 10-6 in plain English and negotiate the waiver days and earnest money so the timeline fits your sale.

Start with my free San Antonio Buyer's Guide, then call or text me at 210.772.3123 and we will map out which of these three tools fits your numbers before you write a single offer.

FAQ

How much can I borrow on a HELOC in Texas?

All debt secured by your homestead, including the HELOC, cannot exceed 80 percent of fair market value, per the Texas Real Estate Research Center. Your lender may set the line lower.

What TREC form is used for a home sale contingency?

TREC No. 10-6, the Addendum for Sale of Other Property by Buyer.

Can the seller accept another offer if my offer is contingent?

Yes. You then have the days written in the addendum to waive, with extra earnest money, or the contract ends and your earnest money is refunded.

Sources

• Texas Real Estate Commission, "Addendum for Sale of Other Property by Buyer" form page, https://www.trec.texas.gov/forms/addendum-sale-other-property-buyer (form effective 12/05/2011; accessed Oct 15, 2026)
• Texas Real Estate Commission, TREC No. 10-6 form PDF, https://www.trec.state.tx.us/sites/default/files/pdf-forms/10-6.pdf (accessed Oct 15, 2026)
• Texas Real Estate Research Center at Texas A&M, "What to Know About Home Equity Loans in Texas," Rusty Adams, J.D., https://trerc.tamu.edu/article/what-to-know-about-home-equity-loans-in-texas/ (published July 21, 2025)
• Texas Real Estate Research Center at Texas A&M, "Home . . . A Loan," Rusty Adams, https://trerc.tamu.edu/article/Home-A-Loan/ (published Dec 2, 2021)
• Texas Public Radio, "San Antonio home sales inch up in August compared to a year ago," citing SABOR, https://www.tpr.org/economy-and-labor/2026-09-16/san-antonio-home-sales-inch-up-in-august-compared-to-a-year-ago (published Sept 16, 2026)
• Redfin, San Antonio Housing Market, https://www.redfin.com/city/16657/TX/San-Antonio/housing-market (September 2026 data; accessed Oct 15, 2026)

Authored by Mark Stillings, TREC Certified Real Estate Instructor

Mark Stillings, Associate Broker, M.B.A.

TREC Certified Instructor | Certified Negotiation Expert (CNE) | Military Relocation Professional (MRP)

Coldwell Banker D'Ann Harper, REALTORS®

Direct Line: 210.772.3123 | Email: mark@markstillings.com

Follow along: YouTube @markstillings, Instagram @markstillingsrealtor, TikTok @markstillingsrealtor, Facebook, LinkedIn