Key Points

Buying a home while trying to sell your current home can be difficult and sometimes impossible to line everything up. This program makes it easy by letting you buy your new home first, then worry about selling your home afterward thanks to two key features of this program.

Summary

• Allows your sellers to purchase a replacement home without a selling contingency
• We ignore their current mortgage liability
• Unlock their home equity with a 0% bridge loan to use as a down payment

How It Works

1. Obtain a guaranteed offer from Homelight for your seller’s home to determine equity unlock
2. Make non-contingent offers on a replacement property
3. You have 210 days to sell the home after buying new home: UPDATED 6/7/2024; You have unlimited time to sell your home. After 120 days, Homelight buys the home but you/your Realtor has unlimited time to continue to sell your home.
   • 90 days to sell before Homelight light buys the home.
   • 120 additional day of upside protection – seller gets reimbursed after the home sells.

How Much Can You Get

• Borrow up to 75% of your home’s value:
• If you own a home worth $500k and owe $250k. Max 75LTV = $375k, meaning you can borrow up to $375k.
• Then, subtract your mortgage balance; $375k – $250k = you should be able to obtain a bridge loan for $125k.
• Once you sell, you get the rest of your home’s equity which can be used to pay down new mortgage, recast the payment, etc.

Program Details

• Sellers must use a conventional loan to purchase replacement property
• Program costs 2.4% of the final sales price of their home; $500k = $12,000 (most homes can sell for more money if vacant due to superior showing and scheduling for new prospective buyers)
• No up-front costs to the seller
• The seller chooses their listing agent

 Benefits

• The seller moves on their time (and can wait for the right house)
• You get to sell a vacant home
• The seller pays nothing if it doesn’t work out within 90 days

Click here to work with me on your next mortgage.

~Rob

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