Cash is king in just about every aspect of life – including residential real estate.
Consumers who rely on third-party financing to make a bid on a home or contingent on the sale of an existing property have a tough hill to climb against buyers purchasing with all cash. But there is now a solution to getting that edge – CashEdge© from Priority Home Lending.
Research shows that cash offers are about four times more likely to drive better terms on a home purchase – and gain acceptance from a seller – against a competing bidder who has a home-financing contingency. Sellers know, in most cases, that cash offers will move more swiftly to closing with fewer surprises.
Addressing a need for a financially sound response, Priority Home Lending launched CashEdge©. The program puts prequalified buyers on equal footing with cash buyers in a competitive situation.
How? Priority partners with fully vetted buyers – homeowners and renters – to deliver cash up front on the desired purchase while finalizing the mortgage after closing.
CashEdge© provides the cash at closing. Buyers only pay interest on the loan, typically for about four months, at about 6% interest*. There is a 1% origination fee on the loan amount. Buyers are credited half of the fee if they agree within 45 days of the closing date to complete permanent financing with Priority.
The best part may be that closings with CashEdge© can take place in as little as 10 days. Can you imagine having your broker write a bid on your dream home, on an all-cash basis with no financing worries, while offering to complete the deal in less than two weeks? That’s a big-time statement any seller would take seriously.
Once qualified for the CashEdge© program, homeowners with financing on a home will only have to worry about their existing mortgage and interest on the temporary loan for the new property. They will not be expected to pay two mortgages at the same time, according to Priority.
Buying before selling is a powerful weapon in anyone’s real estate arsenal. CashEdge© is a program that can work for consumers in any housing market and strengthens the opportunity to negotiate better terms when purchasing as a cash buyer.
Priority delivers a letter to qualified buyers that accompanies the offer, proving that the purchaser is good for the money and instilling greater certainty for sellers. There is no need for an on-site appraisal to qualify for the program, but one would be conducted after the seller accepts the offer.
Priority will check an applicant’s credit score, income details and total assets to determine eligibility for CashEdge©. FICO credit scores should be 720 or higher, debt-to-income ratios must be at or below 43% (at or below 40% on larger loans), and eligible buyers must have six months in cash reserves on loans of 80% or more of the purchase price.
What about the fine print? It’s standard language: The home must be owner-occupied, sit on land no greater than five acres and cannot be new construction. Buyers wishing to finance through the VA, FHA, USDA and other state and federal programs do not qualify for CashEdge©. Currently, condominiums, manufactured homes and rural properties are not eligible.
Your Priority loan consultant in Washington, Oregon and Idaho will review the program in full when you contact them. Lynnwood, Wash.-based Priority is powered by Cornerstone Home Lending, a full-service home lender licensed in 38 states and Washington, D.C. Priority has a full suite of lending options, including bridge loans and home equity lines of credit, as well as 30-year conventional and adjustable-rate mortgages.
Buyers frustrated after being beaten out by all-cash bidders now have an edge – CashEdge©. Priority, in partnership with John L. Scott Real Estate, has buyers covered from start to finish.
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*Interest rates may change based on market conditions; ask your Priority Home Lending loan officer for the latest terms. ©2022 Priority Home Lending, LLC. Company/Branch NMLS 1031451. WA CL-1031451. Licensed under the Oregon Consumer Finance Act.