Recently, I was talking with a friend and colleague, David Koch from U Mortgage, and he casually mentioned that nearly 50% of his pre-approvals include bridge loans.
That stopped me in my tracks.
Bridge loans aren’t something I see used every day in our market, so I wanted to better understand why they’re becoming more common. I recently sat down with lender David Koch to talk through how bridge loans work, when they make sense, and why they’re coming up more often right now.
Quick Summary
Buying and selling at the same time can feel complicated—especially in today’s market. This guide breaks down how bridge loans work, why they’re becoming more common, and the strategies you can use if you have a home to sell.
Watch the Conversation
David and I walk through how bridge loans work, when they make sense, and why they’re coming up more often right now.
According to the National Association of REALTORS® 2025 Profile of Home Buyers and Sellers, 65% of buyers already owned a home before purchasing, and first-time buyers now make up just 21% of the market—the lowest share on record.
In other words, most buyers today are trying to buy and sell at the same time.
Add in limited inventory, and you’ve got a real challenge:
- Sellers don’t want to sell without knowing where they’re going
- Buyers don’t want to miss out on a home while waiting for theirs to sell
That’s exactly where bridge loans—and other strategies—come into play.
What Is a Bridge Loan?
A bridge loan helps “bridge the gap” between buying your next home and selling your current one.
It allows you to:
- access equity from your current home
- use it toward your next purchase
- move forward without a home sale contingency
In a competitive market, that can make a significant difference.
Why This Is Coming Up More Often
What David is seeing—and what I’m seeing with clients—is this:
👉 Timing has become the hardest part of the process
- Well-priced homes move quickly
- Inventory is still tight
- Sellers prefer clean, non-contingent offers
Bridge loans are one solution—but they’re not the only one.
Your Options If You Have a Home to Sell
While bridge loans are one option, they’re not the only path forward. Here are a few of the most common strategies I walk through with clients:
Option A: Sell with an Extended Closing
You sell your home first and negotiate a longer closing timeline.
Why people choose this:
- You know your home is sold
- You have time to find your next home
The trade-off:
- You may feel pressure to find something quickly
Option B: Sell, Close, Then Search
You sell your home, close, and then begin your home search (sometimes with temporary housing in between).
Why people choose this:
- You become a very strong buyer
- No financial overlap
The trade-off:
- You may have to move twice
Option C: Buy Contingent on Selling
You make an offer that is contingent on your current home selling.
Why people choose this:
- Lower financial risk
The trade-off:
- This is typically a weaker offer in a competitive market
Option D: Buy First (Bridge Loan or Dual Financing)
You purchase your next home before selling your current one.
This may involve:
- a bridge loan
- qualifying for two homes temporarily
- pricing your current home strategically for a quick sale
Why people choose this:
- Maximum flexibility
- Ability to act quickly when the right home comes along
The trade-off:
- Potential for overlapping payments (short term)
Option E: Keep Your Home as an Investment
In some cases, it may make sense to keep your current home as a rental.
Why people choose this:
- Long-term wealth building
- Retain a low interest rate (if applicable)
The trade-off:
- Becoming a landlord
- Managing two properties
(This framework is something I’ve put together to help clients clearly understand their options before making a move.)
So… What’s the Right Strategy?
It depends.
The right approach comes down to:
- your financial comfort level
- how competitive the market is
- how flexible your timeline can be
What I can tell you is this—more buyers today are navigating this exact situation. And when you understand your options upfront, you can move with a lot more confidence.
Final Thoughts
Every situation is a little different, and the right strategy depends on your goals, timing, and comfort level. The key is having a clear plan before you make a move.
If you’re thinking about buying and selling at the same time, I’m always happy to talk through your options and help you map out the best approach.
Helpful Resources
If you’d like to explore the data and trends we referenced, here are a few helpful sources:
- National Association of REALTORS® – 2025 Profile of Home Buyers and Sellers
👉 https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers - Federal Reserve Bank of St. Louis – Housing Data (FRED)
👉 https://fred.stlouisfed.org
About the Author:
Jayme Ahlden is a REALTOR® Broker with Coldwell Banker Real Estate Group, serving Mahomet, Champaign, Urbana, Savoy, and surrounding Central Illinois communities. Jayme focuses on education-first guidance and helping clients navigate complex real estate decisions with clarity and confidence.
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