Non-QM lender LendSure launched BOOST this week, which enables brokers to provide a bridge loan to borrowers.
Borrowers can access 12 month bridge loans to make non-contingent offers before selling their property. By tapping into the equity of their current home, homebuyers using BOOST have a higher chance of winning a bidding war.
BOOST stands for "Bridge Option Offering Seamless Transition."
Joseph Lydon, co-founder and managing director of LendSure Mortgage Corp., described BOOST as unique.
"It's designed with brokers and their clients in mind, offering deferred payments for up to twelve months and excluding the first loan from the calculation of the second mortgage. This way, brokers can provide their clients with a unique solution that helps them secure a new home without accumulating additional debt," Lydon said.
This is how it works: BOOST pays off the existing lien and provides a cash-out option to purchase a new home. Primary residences have access to up to 75% loan-to-value (LTV) on loan amounts between $1MM to $1.5MM and up to 65% LTV on loan amounts between $1.5MM to $2MM. Non-owner-occupied and second homes can access up to 60% LTV on loan amounts of up to $1MM. All with a balloon payment due in twelve months for primary residences and second homes and six months for non-owner-occupied properties with no monthly payments required.
BOOST serves various purposes, including buying before selling, renovating and selling the previous house, making non-contingent offers, and retaining real estate assets without liquidation. By tapping into the equity of their current home, homebuyers using BOOST have a higher chance of winning a bidding war.
"With this program, brokers can offer their clients more than just a loan; they can offer a path to their dream home or next investment property," Lydon said.
