Dated: Jan 5, 2026

A lot of homeowners run into the same problem when they want to move: you find the next house first, but you can’t qualify for the new mortgage because your lender counts both mortgage payments in your debt-to-income (DTI) ratio. Even if your plan is to sell your current home quickly, underwriting often assumes you could be stuck carrying two payments—so your buying power gets squeezed right when you need it most. On the other hand, selling your home before buying the new one is not always possible since you need to move to a temporary place.

Because of that, many people turn to bridge loans or hard money. Those can work, but they often come with higher costs, short timelines, and extra complexity. Even mainstream consumer guides note bridge loans can come with high interest rates and fees, and they’re designed to be short-term solutions.

A better approach

Here’s the hidden gem: One of the big banks we work with has an underwriting option where, if you simply list your current home for sale before closing (close of escrow) on the new home, they will be able to exclude your current mortgage payment from the DTI calculation for the new loan.

What that can mean in practice:

-> More buying power (because you’re not being qualified as if you’ll carry two mortgages long-term)

-> Ability to make a stronger, less contingent offer

-> Less need for expensive temporary financing

Why this is a big deal

Many lenders won’t ignore the departing home payment unless the home is already under contract (and sometimes after contingencies are removed). So having an option that may work with the home listed (not yet sold) can be a game-changer—especially in competitive markets.

How we can help

We have loan officers we work with who can qualify you for this program and get you one of the most competitive interest rates in California. Get in touch if you need a referral.