Whether you are moving to a new state or just moving locally, selling your existing home before finding your next home is a difficult and stressful situation. Most homeowners use their current equity as a down payment on the next home and that means selling, then purchasing. But what happens if you can’t find the right home after selling your current home? Or what happens when your home has sold but you can’t move into the next home for a few months? If you have equity in your home, Knock is the answer.
Knock provides a First-of-its-kind Knock Bridge Loanâ„¢ which gives you greater certainty with the process, the convenience in moving first, and a greater competitive advantage with a liquid large down payment.
HOW DOES IT WORK?
You choose your Realtor®, your lender, and apply for a mortgage. Knock will work with your lender to confirm your eligibility and base your bridge loan on the amount of your home equity.
Once eligible, Knock will provide you with a Bridge Loan up to $500,000 depending on the equity in your current home. There is a flat 2.25% fee on this loan which is based on the estimated list price of your existing home, but the loan is at 0% for up to six months.
This Bridge Loan can be used for the down payment and closing costs on the new home, mortgage payments on your current home, or to pay down debt to lower your debt-to-income (DTI) ratios.
With liquid funds, you can make a competitive offer on your next home, and then you can list and sell your current home before or after closing on the new home.
Knock will even provide you with up to $35,000 to make repairs or prep your current home for sale.
You have up to six months from the date you receive the Bridge Loan to sell your current home. If your home has not sold after six months, Knock will buy your home at an agreed price.
Knock is available to residents of AL, AZ, CA, CO, DC, FL, GA, IL, IN, KY, MA, MD, MI, MN, NJ, NC, NH, OH, OR, PA, SC, TN, VA, WA, WI and you can relocate to any state in the US.
Want more information? Check out the video below: