With the Home Swap™, sellers get access to their equity before they sell via the Knock Equity Advance loan, which is similar to, but better than, a bridge loan. The Equity Advance loan is what empowers buyers to purchase their new home without having to qualify for two mortgages, all at 0% interest. It is a complete buying and selling solution that can provide:
- Up to a 20% down payment on the new home.
- Up to $25k in home prep funds to repair/update the customer’s old house.
- Up to 6 months of mortgage coverage payments on the old house.
- Can cover an appraisal gap
The Home Swap solves a number of problems that homeowners typically have when trying to buy and sell at the same time, but not every situation is a good fit for this type of transaction. At a high level, here is what we look for in a good Home Swap customer:
- Buying and selling at the same time in our operating markets.
- Has at least 30% equity in their existing home.
- Their existing home is worth less than $850,000.
- Their existing home should sell in less than 120 days.
- They have a minimum 620+ FICO score.
- Purchasing with a conventional conforming mortgage (no Jumbo/VA/FHA at this time).
- If someone meets these criteria they will most likely qualify for the Home Swap
All of those benefits come at 0% interest, and are paid out of the customer’s equity when their existing house sells. The equity advance loan is the unique factor that brings certainty, convenience, and cost effectiveness to the Home Swap, allowing your clients to buy their new home first, then sell the old one.
