Can I use a home equity line of credit to purchase another home?

I want to open a home equity line of credit. I have 100% equity in my house and an excellent credit rating. I am planning on moving, but would like to buy another house first, and then sell my current house (which would sell for a higher price than the one I would buy).

If I use the equity line to buy a house, would the bank permit me to sell my current house and pay them off at the closing? Kind of a bridge loan without the fees.

Yes, that is definitely a good way to go. I am a loan officer and we do this all the time.

yes, but since you'll be buying a 2nd house and not selling your primary house at the same time, you will not be eligible for the low cost owner-occupied mortgage rates - you'll probably need 20% down and will pay at least 1% higher rate than if you were buying a primary residence.

what kinds of fees are you expecting to avoid - once you sell your first house, you will still pay all normal seller's closing costs like real estate transfer fees (usually 1% of sale price - buyer and seller each pays), unpaid utilities and taxes, deed transfer fees, real estate agent commission, etc

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sure can but know HELOC will only go to 80%-85% ltv on current home so if down sizing is your best bet then go for it but make sure yours selling will be enough to satisfy the HELOC at close as many markets are down some in value