Compass launches bridge loan program!
For the past 5 years, I have had many buyers choose a home, and want to secure an offer before someone else takes it. I have several lenders that have helped my buyers do just that. All have been extremely pleased with my ability to make their dream come true! NOW! In partnership with Better.com and Freedom Mortgage, Compass aims to help homeowners make a down payment on a new home before they sell their old one.
Compass is launching a new bridge loan program aimed at providing purchasing power in the form of short-term loans to clients listing with the brokerage, it was announced today Monday October 20th.
I have several partners that I have been putting these programs together, including Jumbo loans for the past five (5) years. This is extremely amusing, NOW In partnerships with Better.com and Freedom Mortgage, “THEIR” new program allows consumers working with a Compass agent to apply for a bridge loan that includes no out-of-pocket costs for six months.
Work with me, I’ve been doing this for years and it’s not a new program. They say not until now was it an easy accessible equity based tool to help buyers!
Carly Litzenberger, senior director of new ventures at Compass, said in a statement. We are incredibly excited to be able to offer Compass Bridge Loan Services to home buyers and sellers across the country,” “Until now it’s been far too difficult for homeowners to easily access the equity in their homes. By unlocking this capital, Compass is putting the power back in the hands of the homeowner and bringing a new group of buyers to the housing market.”
The bridge loan program is one of the first offerings of Compass’ new ventures division, which was announced at the time of an executive reshuffling back in June.
I say, “It’s about time someone else picked up on tools that have been out there for years!” No sense going further into an item that is not clearly NEWS WORTHY! To be clear now, unlike Compass that claims to purchase your home if it does not sell, my sources with RE/MAX have helped these buyers sell their existing properties with a huge success rate!
Bridge loans are short-term loans that allow homeowners to tap into home equity to secure a new home before selling the old home. Typically paid back over six months to a year and aren’t used in place of a traditional mortgage. I’ve never had any of my buyers go over 6 months! Many of my lenders only ask that the buyer wait at least 6 months so the lending broker is able to keep their commission.
The terms of the specific loans are decided by the lender, and the homeowner still needs to qualify for the loan. Beware many of these iBuyer web based companies only want your information to sell to a third (3rd) Party. “I do not do this, I want your business and future business!”
Like iBuyer solutions, bridge loans are another way brokerages are attempting to reduce friction in the home buying and selling process, by allowing existing homeowners to take action when they see a home they want to buy instead of waiting for their current home to close.
In my opinion, It’s unclear if Compass is offering any protection or guarantee in the event an agent fails to sell the home. “I DO NOT guarantee I’ll sell your existing home however, my buyers with my referral base have not failed my buyers on either side of the transaction!”
“This is exactly the type of innovative programming I came to Compass for,” Andrew and Jennifer Oldham, Compass agents in the San Francisco Bay Area, said in a statement. “We have two existing clients that are buying homes solely as a result of Compass Bridge Loan Services. Being able to offer this type of program is a true game-changer for our clients, as well as our business.”
“Well maybe these agents that have joined Compass should reevaluate their choices.!” I’ve been a RE/MAX Agent 18 years and the reason we are #1 brokerage nationally and internationally, are our independent and flexible experience and knowledge that assists our buyers and sellers make the smartest and wisest choices.
A portion of this article was brought to the forefront by writer Patrick Kearns with Inman News. The strongest material based argument was brought to you by yours truly! Dan Swing, RE/MAX Unlimited, Ponte Vedra and Ponte Vedra Beach! You can reach me at 904-671-9225