Knock, the innovative fintech company, announced today that agents and consumers no longer have to choose between working with their local lender to get the benefits of buying a new home before listing their current house on the open market for top dollar (aka “Buy Now, Sell Later”). Now, any lender or agent has the ability to supercharge virtually any conventional or jumbo mortgage with a no-interest equity advance loan from Knock to receive the benefits of the Knock Home SwapTM.
By pairing the Knock Home Swap Equity Advance1 with a purchase mortgage of their choice, homeowners have the certainty and convenience of working with the agent and lender of their choice to win their dream home and move on their timeline.
“Since 2015, our mission has been to empower people to move freely, and we have continued to raise the bar when it comes to making the process of buying and selling homes simple, certain and cost-effective,” said Knock Co-Founder and CEO Sean Black. “Many companies offer home loans, but no one else offers the Home Swap. By partnering with lenders, we are making it easier for consumers to get the benefits of leveraging the equity in their current house to buy their dream home without any of the hassles that typically come with buying and selling, including the ability to avoid moving twice and living through repairs and showings.”
Based on the equity in their current house, a homeowner can use the Knock Home Swap Equity Advance to make a non-contingent offer on their new dream home before listing their old house. The certainty of a non-contingent offer often results in winning the home at a discount to list price and closing on a faster timeline.
Homeowners also can use the Knock Home Swap Equity Advance loan to:
Put up to a 30% down payment, buy down the mortgage rate and cover the closing costs on their new home.
Cover up to $35,000 in home prep costs so the existing house sells on the open market for top dollar.
Pay up to six months of mortgage payments on the old house.
As part of its Home Prep & Marketability Allowance, Knock provides access to its approved contractor network and manages the payment of all bills upon completion of work out of the homeowners’ equity. Additionally, Knock provides a backup offer on the old house in the unlikely event that it doesn’t sell within six months. Ninety-one percent of Knock homes sell in 90 days or less.
To qualify for the Knock Home Swap Equity Advance the for-sale home must be located in one of the 75 markets in which Knock operates; the new home can be located anywhere in the U.S. The Knock Home Swap Equity Advance can be paired with most conventional and jumbo mortgages with the exception of FHA and VA home loans.