With U.S. home prices continuing to rise, market trends are enriching sellers, but frustrating homebuyers.

At the same time, the number of homes for sale is declining quickly — forcing buyers into a dreaded bidding war.

While it is a challenging time for buyers, these market trends create ideal conditions for a niche product known as bridge financing. LendSure has revolutionized this product to create a one-of-a-kind loan solution that can help buyers stand out and give them a greater chance at winning the bid.

With BOOST (Bridge Option Offering Seamless Transition), borrowers can tap into the equity of their current home to make a non-contingent offer, making them look more financially appealing to sellers. Instead of waiting for the sale of their current home to close, buyers can use BOOST to move quickly.

How is a BOOST Bridge Loan used?

A bridge loan is a short-term loan that is paired with the purchase mortgage on the buyer’s next property. Through this program, the borrower taps the equity in their existing home by getting cash out to use as a down payment on the new home. The BOOST loan pays off the existing mortgage, so no monthly payments are required for 12 months for owner occupied properties and 6 months for non-owner occupied properties or until the property sells (whichever is first), giving your clients additional time to sell their departure residence and maximize the potential sales price.

This product is crucial in a competitive seller’s market, especially since most homes stay on the market for less than a month, according to NAR reports. That means buyers who can move quickly to gain an important advantage.

Example:

Current/Departure Property
Current Market Value $800,000
Loan to Value 75%
Bridge Loan Amount $600,000
Outstanding Mortgage Paid Off $200,000
Cash Out for Down Payment $400,000

New Purchase Property
Purchase Price $1,500,000
Cash from Bridge Loan $400,000
Cash from Liquid Assets $200,000
Loan Amount $900,000

How Does BOOST Work?

The borrower’s current property is listed for sale, and when the sale closes, the bridge loan balance is paid off. The BOOST loan has up to 12 months term for owner occupied properties and up to 6 months for non-owner occupied properties, with no monthly payments, and no prepayment penalties. Because there are no payments, no debt-to-income (DTI) ratio is calculated on the existing property loan.

The borrower can then make an offer on their new home by using the cash-out proceeds from the bridge loan as a down payment. Additionally, borrowers can pair BOOST with a wide variety of non-QM solutions that LendSure has available to choose from. For example, income from self-employed borrowers can be calculated using bank statements or Profit & Loss statements.

Why should I consider BOOST for my borrowers?

BOOST can be an ideal solution for a borrower seeking to purchase properties between $150,000 and $2 million – but whose cash is tied up in another property.

This type of loan product empowers your borrowers to move fast on a desired property without waiting to close on the sale of their current home. It’s a compelling way for offers to stand out and be successful in today’s intensely competitive purchase market.

Why Partner with LendSure?

LendSure’s BOOST program allows home sellers to tap their equity so they can become buyers today – not when their home sells weeks or months from now. In contrast to other bidders, who must wait to sell their current homes first, a buyer with a BOOST loan has a real competitive advantage. And with our solution, not only will they look like a cash buyer, but they’ll also benefit from no monthly payments on the bridge loan for up to 12 for owner occupied properties and up to 6 months for non-owner occupied properties  or until the property sells.

At LendSure, prequalification for BOOST loans can take as little as 24 hours, and full conditional approval is usually complete within 48-72 hours. LendSure offers quick funding times and a customer-friendly approach to debt-to-income calculation. By providing fast solutions to clients, your business will enjoy high growth potential.

The borrower makes a one-time repayment due at the end of the loan term or when the property sells, with interest accruing during the life of the loan. Other restrictions and limitations may apply. Granting of loan is subject to the credit and policy requirements of LendSure Mortgage Corp.

Benefits of LendSure’s BOOST Program:

• No monthly payments. A single payment is due at the end of the loan term or when the borrower sells their current property (whichever is first).
• Up to 12 months to sell a departure residence. Your client has up to 12 months for owner occupied and up to 6 months for non-owner occupied properties to sell their current home, so they can get the best-selling price possible.
• Make a non-contingent offer on your client’s new property. Increase potential to win in a hot purchase market by making a non-contingent offer! Opting for BOOST could enhance the competitiveness of your client’s application.
• Your clients can access the equity from their current home to purchase their next one. BOOST will pay off their existing mortgage AND provide cash out to purchase the new home.

Why should I become an expert in LendSure’s BOOST Program?

Our BOOST solution can help you build a stronger business relationship with your real estate agents, which leads to more referrals. By offering bridge loans and other non-QM products to your borrowers, you’ll stand out as an expert. Our customized solutions help clients accomplish their unique financial goals.

In today’s competitive real estate landscape, buyers need to be empowered with swift, successful transactions. LendSure’s BOOST loan program can be the perfect solution for property owners who need liquidity to buy their new property.

LendSure’s BOOST Loan Calculator

Use our BOOST  Loan Calculator to determine your clients’ buying power in seconds! Simply input a few details to view/download the shareable results.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are number ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan.  We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio or refinancing of a currently owned property.

Are you ready to grow your business? Conventional loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.