Buy Now, Sell Later
Buy Now, Sell Later™ – What is Castle Hill Mortgage’s exclusive Buy Now, Sell Later™ loan and how can it help you secure the home of your dreams before you sell your current one?
A lot of people who would like to buy a new home are in the position of having to sell their existing home in order to get access to their equity for the down payment and other associated costs. In some cases, this means that they miss out on a home they really want because they can’t get their home prepared for sale, on the market, and sold quickly enough, especially if their current home would benefit from some fix up or staging. What’s more, even if they have other assets like stocks or mutual funds, selling those assets to fund the purchase can expose them to significant tax consequences and the loss of future investment returns.
The Buy Now, Sell Later™ loan is Castle Hill Mortgage’s answer to this challenge. Buy Now, Sell Later™ allows our clients to utilize the equity in their existing home to obtain a new loan up to the full value of the purchase price. In addition, for qualified buyers, the payments on the new loan may be deferred until the existing home is sold and their low interest rate first mortgage can be left in place. With a current interest rate of just under 10% and the ability to close in 7 business days, it can provide an excellent solution for people who want the advantage of shopping like a cash buyer and to get top dollar for their existing home.
Here’s an example of a recent transaction. A client was moving to the Bay Area for a new position and had a historic home to sell in another market. They weren’t in a rush…that is until they found the exact home they wanted in the perfect location. We discussed their situation with them on a Saturday afternoon and within 5 hours issued a loan terms letter describing what we were capable of doing for them in detail. They moved forward with the loan that Monday and were able to make an aggressive offer since they could close by Friday of the same week. Their offer was accepted over the other three bidders and within four months of closing, they had sold their fully staged previous home for top dollar. Using the proceeds from the sale of their home and a discounted conventional mortgage arranged by Castle Hill Mortgage, they paid off our Buy Now, Sell Later™ loan and were able to complete the whole process in less than 5 months.
If you have equity in your existing home and want more detailed information about whether Buy Now, Sell Later™ might be right for you, let’s get you scheduled directly with the decision maker so you can shop with confidence like a cash buyer!
