Move-Up Buyers

When buying your next home, you must consider different strategies depending on your situation. One of the challenges you may experience when moving is selling your current home to access your downpayment. This is known as a contingent sale or purchasing contingent to selling. When offering to buy your new home, the seller may not find your offer as attractive as a non-contingent offer from another competing buyer. To meet this challenge, we provide the following solutions to make your purchase offer non-contingent to sale.

Bridge Loans:

Bridge Loans allow you to borrow or access equity from your current home to provide a down payment for purchasing.

Cross collateralization

Cross collateralization is a new loan secured by your current home and new property.

Flex Loans

Flex Loans allow loan approvals based on the new home payment and do not include the current loan payment for qualifying purposes.

Minimal reserve requirements

Minimal reserve requirements—Reducing the post-funding money that traditional banks would otherwise require you to keep in savings allows you to put that money towards a higher purchase price.

Maximum income leverage

Maximum income leverage to allow for higher loan amounts to reach your desired price.

Departing rental income

Departing rental income flexibility can increase your total income or reduce your current mortgage liability. It can also allow you to access a higher loan amount for your new home.

Purchasing a new home with the dilemma of selling your current home first

You're purchasing a new home and need to sell your current home to free up the down payment. The proceeds from selling your home should more than cover the down payment on your new home, and even allow you to overbid should a competitive bidding situation arise.

Block: Your real estate agent says selling your home for top dollar will take weeks. You will not have the funds liquid from the sale proceeds to make the offer on your new home at that time. Therefore, you must make the purchase offer contingent on selling your current home. Your real estate agent says the seller of your new home won't accept a contingent offer.

Unblock: We'll provide bridge loan options so you can access cash out of your property for a downpayment on your new property. This will allow you to purchase and sell your current/departing home in the time needed to sell for top dollar. Once the house is sold, you can pay down your bridge loan. Or, as another option, we can refinance the bridge loan into a longer-term ideal for repayment.

New home but too many loans

You're preparing to make an offer on a new home. However, your lender will only allow you to carry one mortgage, and you won't sell your current home. So, you're renting out your current home to cover the mortgage payment.

Block: Many lenders will limit the rental income from your departing residence on your application. They may only accept a certain percentage of the actual rent, the current market rate, as opposed to the actual rent of a current lease, and in some cases, no rent.

Unblock: We have access to many flexible loan programs that will allow the amount of rent you're receiving from your renter, the market rate without an active lease, and loan options that don't require the mortgage payment from your departing residence to be included in the income analysis.