Meet DTI Drop
Remove your first mortgage from your debt-to-income ratio to qualify for your next home sooner and make your move without waiting to sell.
What Is LendFriend's Equity Unlock Product?
DTI Drop is LendFriend’s short-term bridge solution designed to help homeowners lower their debt-to-income ratio (DTI) and qualify for their next home before selling. By temporarily removing your current mortgage from your DTI calculation, you can qualify for a stronger loan and make your next move without delay.
It bridges the gap between selling and buying — allowing you to purchase first, move once, and sell later when the timing and market are right.
DTI Drop is one of the two flexible financing options available through our Buy Before You Sell program. While Equity Unlock helps you access your home’s equity for your down payment or closing costs, DTI Drop helps you improve your qualifying ratios so you can move forward with confidence.
The process is fast and straightforward — often completed in less than a week — so you can go under contract and close on your new home in under 30 days.
Unlike a standard refinance or loan recast, DTI Drop is built for short-term flexibility. Once your current home sells, the bridge loan is paid off in full — with no prepayment penalties and no double payments. That means smoother approvals, stronger offers, and zero moving twice.
A Typical DTI Drop Transaction
A family is relocating within Austin, moving from East Austin to Allandale. They’ve already found their dream home, but like many move-up buyers, they don’t want to worry about timing the sale of their current house perfectly—or renting in between.
The challenge? With both mortgages counting toward their debt-to-income ratio (DTI), their DTI sits at 60%, which is too high to qualify for the new mortgage. Since they plan to sell their East Austin home in the next few months, they’re the perfect candidates for DTI Drop under LendFriend’s Buy Before You Sell (BBYS) program.
Here's how a typical DTI Drop transaction looks after you sign the contract to buy the new home:
Week 1: Sign the DTI Drop Paperwork and Get Approved
With their purchase contract already signed, the family starts by completing the DTI Drop process. LendFriend quickly reviews their financials, removes the current East Austin mortgage from their DTI calculation, and finalizes approval for the new loan—all within a few business days.
Week 2: Underwriting and Appraisal
With DTI Drop in place, the new home loan moves through standard underwriting. The appraisal is ordered right away, and the family’s purchase file is reviewed in tandem to keep everything moving on schedule.
Week 3: Final Conditions and Clear to Close
LendFriend’s team works directly with the family’s agent and title company to finalize conditions, verify DTI Drop documentation, and issue a clear-to-close. There’s no need to delay while waiting for the East Austin home to sell.
Week 4: Close on the Allandale Home and Move In
The family closes on their new home in under 30 days—and moves in immediately. Once their East Austin home sells later this spring, the DTI Drop loan is automatically paid off in full.
FAQs About DTI Drop
What are the fees for DTI Drop, and how does it differ from a bridge loan?
The DTI Drop program is for borrowers who don’t need their home’s equity but can’t qualify for a new mortgage while still carrying their current one. Instead of lending cash, this option temporarily removes your existing mortgage from your debt-to-income ratio through a home sale guarantee.
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Program fee: 1% of the final sale price of your departing residence (minimum $5,000). A MASSIVE Discount from the 3.5% charged by Homeward.
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Inspection fee: $900, paid when your home sells
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Timeline: You’ll have up to 120 days after closing on your new home to sell your old one
Example:
If your home sells for $800,000, your program fee would be $8,000 (1% of the sale price). If it sold for $400,000, the minimum $5,000 fee would apply.
The DTI Drop structure allows you to qualify for your new loan now while ensuring you still sell your existing home at full market value — a useful strategy for relocation buyers or anyone facing tight purchase timelines.
How long does DTI Drop take to complete?
The process is fast — it typically less than one week to finalize the DTI Drop paperwork. From starting to process to buying your new home, LendFriend is able to close in less than 30 days.
Who is DTI Drop best suited for?
DTI Drop is ideal for homeowners who plan to sell their current home soon but want to buy first to avoid renting or timing both closings perfectly. It’s designed for move-up buyers, relocations, and families upgrading within the same market.
When do I have to sell my current home?
Most homeowners sell within a few months of closing on their new property, but no more than 120 days. Once your home sells, the DTI Drop loan is paid off in full, leaving you with just your new mortgage.