PRMI Home Sense Buy Before Your Sell Program allows home buyers that have a home to sell to purchase BEFORE they sell their current home WITHOUT having to qualify to carry both mortgages. Home Sense allows you to buy before you sell with greater certainty, competitiveness, and convenience throughout the home buying and selling journey. The program has two parts; a Guaranteed Offer to purchase your current home and a Bridge Loan to access your equity to purchase your new home. Get the convenience to move on your schedule, streamlining the transition between homes without slowing you down. Get started today by calling the John Thomas Team at 302-703-0727 or APPLY ONLINE.

What are the Guidelines for the PRMI Home Sense Program?

The PRMI Home Sense Program will provide a guaranteed purchase offer on your current home to close within 6 months which meets Conventional Loan Guidelines for excluding your current mortgage payment when qualifying for purchasing a new home. The second part of the program provides a Bridge Loan to tap the equity in your current to put down on the purchase of your new home. Below are the guidelines:

• Making a Non-Contingent Offer to purchase a new home
• Remove the Home Sale Contigency with PRMI Home Sense Purchase Guarantee
• Down Payment up to 50% of the purchase price of your new home from Bridge Loan
• Can Cover Closing Costs on the new purchase home loan
• Up to $35,000 for home prep to get the most out of your listing
• 6 months (interest-free) mortgage payments on existing home
• Can use Bridge Loan to pay moving expenses up to $5,000.
• Home Sense Contract Fee is 2.25% of the departing property’s estimated value
• Work with your preferred Agent to Sell your Current home and to purchase your new home

What is the Cost of the Home Sense Buy Before You Sell Program?

There is a cost to using the PRMI Home Sense Buy Before Your Sell Program. The cost of the program is a 2.25% Contract Fee that is paid out of the bridge loan funds at closing on the new home. Below is an example calculation of the Contract Fee to use the Home Sense Program:

Estimated List Price of Current Home – $500,000

Contract Fee 2.25% – $11,250

That is the only fees to use the program but there are some closing costs on the Bridge Loan. The Bridge Loan is 0% interest and estimated closing costs on Bridge Loan is about $1,850 but varies by state.

How is Guaranteed Purchase Offer Amount Determined?

The Guaranteed Purchase Offer will be 80% of the estimated sale price. So if List price is $500,000 then the maximum guaranteed offer will be $400,000. The home seller has 6 months to list and the sell the home before would be required to execute on the guaranteed offer. Most customer’s homes are on the the market in less than 90 days and the average sale to list price ratio over the last 3 years is >100%.

The Purchase Guarantee “untethers” buyers from their current home and mortgage, but unlike the industry norm, our shared goal is to help get the highest price on the open market.

How Does the Home Sense Bridge Loan Work?

The Home Sense Bridge Loan are provided at the closing on the New Home Purchase. The money from the Bridge Loan Can Be Used for the Following:

• Access Up to $500,000 in Equity
• Can Be Used for Down Payment & Closing Costs
• Secured & Unsecured Debt Payoff
• Home Prep Up to $35,000 on Current Home
• Moving Expenses Up to $5,000
• Payment of Departing Residence Mortgage Payment for up to 6 Month at 0% Interest

The Bridge Loan Qualifications are as follows:

• Credit Score 620+
• Down Payment up to 50% of the purchase price of the new home
• Primary Residence to Primary Residence Purchase Only
• Maximum List Price $1.2 Million in Most Markets

How Do You Apply for the PRMI Home Sense Program?

If you are interested in removing your home sale contingency and accessing the equity in your current home with a Bridge Loan, then the PRMI Home Sense Buy Before You Sell Program is the perfect solution. You can get started by calling the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE.