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Fortuna Finance Launches Home Sale Assurance Program

David Krechevsky
Jan 19, 2023
Fortuna Finance website

New company’s program provides guaranteed purchase offer for sellers.

Fortuna Finance, a Chicago-based provider of products and services that streamline the home sales process, announced the official launch of its business on Thursday.

It also announced a program to help real estate agents and mortgage lenders provide homebuyers with confidence and peace of mind when selling their current home to buy a new one.

The Home Sales Assurance (HSA) program works with real estate agents to provide a guaranteed purchase offer on a client’s current property, which allows the client to make a non-contingent offer on a new home while deducting their mortgage debt from their debt-to-income (DTI) ratio when qualifying for a new loan, the company said.

“Since the homebuyer’s current home is ready to be sold and there are no contingencies, government-sponsored entities like Freddie Mae and Freddie Mac, as well as many non-agency investors, typically allow underwriters to ignore the buyer’s current mortgage debt when being approved for a new mortgage,” the company said in a news release.

Fortuna’s Guaranteed Backup Contract ensures the client’s current home is sold within 90 days, during which time the real estate agent can stage and sell the home at the highest possible price. If the home does not sell after 90 days, Fortuna will buy and relist the home for sale with the current agent, the company said. When the home is sold, 90% of the proceeds go to the original homeowner, as Fortuna keeps only enough to cover the costs of the transaction, the company said.

In beta testing of the new business, Fortuna has already helped 15 homeowners streamline the process of buying a new home, according to company President Eric Meadow, who has more than 20 years of leadership experience in the mortgage industry.

“In today’s volatile housing market, many existing homeowners are excited about buying their next home, but often become overly stressed about selling their current home,” Meadow said. “Our revolutionary but simple approach eliminates a home seller’s anxiety while empowering real estate agents and lenders to help their clients focus on what really matters — getting into the home of their dreams.”

By helping consumers buy their current home before their new one has sold, Fortuna also helps home sellers finish last-minute projects so they can sell it at the highest possible price.

“Having Fortuna in my back pocket provides me with a unique opportunity to have conversations that other lenders are not having and offers value to my referral partners that really moves the needle in our transactions,” said Matt McGinniss, a loan officer with Midwest Equity Mortgage.

“At the end of the day, homebuyers don’t dream about selling their current home — they dream about buying a new home with more space, better schools, or an easier commute,” Meadow said. “We created Fortuna to make sure real estate agents and lenders can provide peace of mind to these homebuyers, so their dream comes true.”

Information about the program is available on the company's website.

Published
Jan 19, 2023
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