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EPISODE 370

How to Buy Help Clients Buy Before They Sell

Nick (last name not stated), Account Executive at HomeLight's Buy Before You Sell division · Wed, 26 Feb 2025
Agent ReferralsClasses & EventsLead GenerationMarket & Industry

This episode introduces HomeLight's Buy Before You Sell program — a 0% interest bridge loan that lets move-up buyers unlock equity and remove the departing residence from their DTI, enabling non-contingent purchase offers. LOs learn how the product works mechanically, how it's priced (2.4% of departing residence sale price), and how to use it as a wedge to win agent relationships. Best for LOs who regularly lose move-up buyer deals to DTI problems or home-sale contingencies.

A 0% bridge loan that triggers the Fannie/Freddie departing residence guideline lets LOs qualify move-up buyers on one mortgage payment instead of three — saving deals they'd otherwise have to turn away.

Takeaways you can run this week

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The playbook

  1. 1. Client owns a home and wants to buy a new one but faces two blockers: equity is locked up, and existing mortgage payment blows DTI.
  2. 2. LO submits the departing residence address, client name, and agent name at lenders.homelight.com.
  3. 3. HomeLight issues a contingency-free cash offer on the departing residence valid for 120 days after the client closes on the new home.
  4. 4. Because a bona fide contingency-free offer exists, the Fannie/Freddie departing residence guideline removes the existing mortgage payment from DTI.
  5. 5. HomeLight simultaneously issues a 0% interest bridge loan up to 75% CLTV on the departing residence (up to $2M equity unlock) — no monthly payment to count in DTI.
  6. 6. LO qualifies the client on the new purchase mortgage only, enabling a non-contingent offer.
  7. 7. Client closes on new home, moves out, stages the vacant property, and lists it on the open market.
  8. 8. Client has 120 days to sell on the open market at full market price; if unsold, HomeLight purchases it.
  9. 9. At closing of the departing residence sale, HomeLight collects 2.4% of the sale price as its fee.
  10. 10. LO earns their full origination commission on the new purchase mortgage.

Worth quoting

“You can now qualify the client for the new home only with the new payments — not with that existing mortgage payment, and not with that bridge loan payment.”
“I get to do something I thought was impossible — I get to literally save transactions and see agents' lives light up.”

Best for

LOs who regularly lose move-up buyer deals because the client's existing mortgage payment kills DTI or forces a home-sale contingency that sellers won't accept.

Links from the show notes

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