Knock has introduced its buy-before-you-sell bridge loan in Texas, giving lenders and loan originators another way to help equity-rich homeowners purchase their next property before selling their current residence.
But the Texas version comes with substantially tighter eligibility and lending limits than Knock offers in most of its markets.
The Knock Bridge Loan is capped at $500,000 in Texas, compared with as much as $1 million under the company’s broader program. Every borrower on the Texas bridge loan must have a middle credit score of at least 680, and total debt secured by the departing property cannot exceed 75% of its fair market value, according to Knock’s Texas product matrix.
That 75% combined loan-to-value ceiling is more conservative than the 80% maximum generally imposed on Texas homestead equity loans by the state Constitution.
The program is limited to borrowers moving from one primary residence to another. Eligible departing properties include single-family homes and townhomes valued between $150,000 and $1.5 million. Condominiums, manufactured homes, multifamily properties, occupied rentals, commercial properties, and homes on 10 or more acres are excluded.
Knock Bridge Loan Plus, a separate version that pays off the borrower’s existing mortgage and removes its principal, interest, taxes, and insurance from the debt-to-income calculation, is not available in Texas.
Under the Texas program, borrowers can receive funds covering six months of mortgage, property tax, and insurance payments on the departing residence. Those funds can improve a borrower’s cash-flow and qualification position, but the existing mortgage is not paid off.
Knock said in its announcement that the structure “eliminates the old home from the equation.” Its Texas materials more narrowly describe the benefit as producing a “better debt-to-income ratio.”
Current Fannie Mae guidance generally treats a bridge loan as a contingent liability that must be included in the borrower’s recurring monthly obligations. Fannie Mae allows the bridge debt to be excluded when the lender documents a fully executed sales contract for the current residence and confirms that its financing contingencies have been cleared.
The ultimate DTI treatment will therefore depend on the mortgage program, underwriting guidelines, lender, and individual transaction.
Equity Access Comes At A Cost
Qualified Texas homeowners can use the bridge proceeds for the down payment on their next property, up to six months of payments on the departing home, repayment of secured or unsecured debt, as much as $35,000 in pre-sale renovations, and up to $5,000 in moving expenses.
The company charges a contract fee equal to 2.25% of the departing property’s estimated list price. Knock’s Texas product guide also estimates approximately $1,850 in closing costs, although the final amount depends on the loan and applicable state requirements.
Knock charges no interest for the first 180 days. The bridge loan is structured as a single-payment loan that is generally repaid when the departing residence sells. If the home has not sold within six months, an affiliated company’s prearranged Knock Purchase Offer provides a backup purchase option.
The 2.25% contract fee applies to that offer and is based on the estimated listing price, not the amount borrowed. For example, the fee would equal $11,250 on a home listed for $500,000, before the bridge loan’s closing costs.
Knock said 92% of its customers’ homes spend fewer than 90 days on the market and that most ultimately sell to a third party rather than Knock. Those performance figures were supplied by the company.
Another Tool For Texas Purchase Business
Texas presents both a sizable opportunity and a more complicated regulatory environment for equity lending. Home equity products accounted for only 7.97% of the state’s mortgage transactions in 2025, compared with 17.52% nationally. Purchase loans, however, represented 53.33% of Texas mortgage activity.
For originators, that makes Knock less of a general home equity product and more of a purchase-market tool for a defined group of move-up borrowers: homeowners with considerable equity, at least 680 credit scores, eligible primary residences, and enough room below the program’s 75% CLTV ceiling.
"Many Texas homeowners have seen the equity in their homes increase significantly," Knock Co-Founder and CEO Sean Black said. "We’re excited to give them a way to put that equity to work when they’re ready for their next move.”
