Opportunities for “move up” buyers are plentiful in the current market. Unfortunately, many homeowners aren’t able to capitalize because it has become harder to access home equity for down payments. Windermere is attempting to address this issue by offering its own stimulus package~short-term, no interest loans to existing homeowners looking to purchase a new home. Windermere clients have access to an interest free “bridge loan” that allows them to borrow a portion of their equity in their current home as a down payment on the purchase of a new home for up to six months. The result: buyers can make a non-contingent offer without dipping into their own cash reserves.
To create this interest-free program, Windermere partnered with Vintage Loans, LLC and is underwriting the costs of this program. “The federal tax credit has helped thousands of first-time buyers purchase a home,” said Jill Wood, President of Windermere Real Estate. “We want to offer a helping hand so second, third and fourth time homebuyers can buy homes as well.”
The Buy Now * Sell Later Loan is open to property owners in Western Washington to use as a down payment on the purchase of a primary residence. The maximum loan amount is $100,000 for six months or $200,000 for 3 months. There is no origination charge, no interest on the loan and no monthly payment required. The loan is due in full when the borrower’s home sells, or when the loan term ends, whichever comes first. Here is a recent article from the Seattle Times regarding the program.
The limitations of this program lie in that the total of all debt secured by the collateral property, including the bridge loan, may not exceed 65% of the collateral property’s current fair market value. The home buyers able to utilize this program must have a good chunk of equity in their current home, and therefore many of our clients may not qualify.
If you have any questions about this new Windermere loan, or if you’d like to discuss the prospect of “moving up” in home in the future, please just give us a call 🙂
Warm regards,
Domenica
Windermere Real Estate
