New lending option promises to empower house buyers
Massachusetts-based broker Sparrow Mortgage has announced a partnership with Calque, to introduce a trade-in mortgage scheme, which will allow borrowers to use home equity to purchase a new property before selling their current one.
According to Sparrow Mortgage, Calque’s guaranteed backup offer provides a solution for individuals and families looking to purchase their next home. The loan program promises to enable borrowers to “leverage their home equity for a substantial down payment,” hence making it easier to qualify to buy a new home.
The company also stated that it developed the trade-in mortgage program knowing that most house buyers with contingent offers often face disadvantages compared to investors and other parties making all-cash bids, aside from the fact that interest rates and home prices continue to spike.
“By using their equity, borrowers can make non-contingent bids that are as competitive as cash offers, significantly increasing their chances of securing their dream home,” the company explained.
It explained that the partnership is expected to transform the lending process, address contingent bid challenges, and empower customers to make stronger and more competitive offers.
“Working closely with our agent partners, we hear all too often the disadvantage plaguing current homeowners in this market,” said Sparrow Mortgage president Robert Foos. “Removing that home sale contingency is not just a ‘nice to have,’ it’s a ‘must do’ in order to have a realistic chance to buy a home.”
Meanwhile, Calque CEO Michael Bremer (pictured) expressed confidence about the partnership.
“Sparrow Mortgage is committed to finding the right loan product for every borrower, making them the perfect partner for Calque,” Bremer said. “The trade-in mortgage simplifies the home buying process and assists buyers in securing their next home in a competitive housing market.”
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