Last week I listed out eight ideas for helping sellers buy BEFORE they sell. Those ideas included:
- Bridge Loans
- Sales Contingency
- Renting out their current home
- Longer Closing Dates
- Rent Backs
Since then, I had the pleasure of working on creative solutions for a number of your sellers and was reminded of something I didn’t share that you need to know. Especially when giving your seller the push to move forward. One, we do Bridge Loans! This is a huge advantage to getting your seller pre-approved with us for their purchase.. we can simultaneously do their bridge loan.
Second item I forgot to mention is your seller can pay down their new loan with no pre-payment penalty. This is important because that new loan is probably higher than they want to keep long term. Many sellers who use a creative option to fund the down payment for their new house want to pay down that loan as soon as they sell their existing home. We have two options for the new home.. we can structure a 1st and 2nd loan (paying off the 2nd loan with the sale) or we can get one loan and recast (or recalculate) the new loan’s payment with a large principle reduction. It’s a WIN-WIN.
Third, we have a few source for a 100% CLTV HELOC. This would be a line of credit on the existing home to use as a down payment on a new home. After COVID some second lenders left the business, those who remaining restricted their product offerings. Most banks today still stop at 80% CLTV, two stop at 90%, NOW.. one goes to 100%.. this gives your seller an incredible tool to tap into their existing equity before putting their house on the market.
Have a unique case? Let’s brainstorm! It’s the puzzles that make this fun.