With Buy Before You Sell, HomeLight unlocks up to 70% of the borrower’s equity in their existing home to use on the purchase of their next home.
We know that, sometimes, your borrowers need just a bit more equity to make the deal work. That’s why we launched Equity Boost, a feature with Buy Before You Sell that’s designed to help borrowers reach their down payment goals or assist in listing preparations at no extra cost.
If your client needs more funds after they’ve received their initial Equity Unlock Amount, we can unlock additional equity for them with proof of assets, such as:
- Savings account
- 401(k)
- IRA
- Investment or brokerage account
- Gift funds
Unacceptable assets include cryptocurrency and business assets, as well as any assets that are already allocated for purchase of the new home.
Please note that a minimum credit score of 620 is required for a borrower to be eligible for Equity Boost:
- Borrower has credit score of 620-679: 2x asset requirement
- Borrower has credit score of 680+: 1.5x asset requirement
Here’s how to get the process started:
- Submit your borrower for Buy Before You Sell. Please note that a borrower needs to be approved for both the program and an initial Equity Unlock Amount prior to starting the application process for Equity Boost.
- Review your borrower’s Equity Unlock Amount. If you and your borrower determine they need more equity for their transaction and they meet both the credit score and asset qualifications, that means they’re a great fit for Equity Boost!
- Apply for Equity Boost. Reach out to your Lender Relationship Manager to get the Equity Boost process started. We’ll trigger an email to you requesting additional documents detailing your borrower’s assets you’d like to be considered. You’ll also be able to find a prompt to apply for Equity Boost in the Task section for that borrower in the HomeLight Lender Portal.
- Select the assets that will be used to back the Equity Boost. You can select all that apply. We’ll let you know which supporting documents are required for each asset.
- Upload supporting documents. Please note that each document must be the most recent statement for the account with 30 days of transaction history listed. You should include all pages for each document.
Once your borrower is approved, we’ll issue an updated Buy Before You Sell Agreement showing the increased equity available thanks to Equity Boost.
After your borrower’s departing residence sells, the sale proceeds pay off the Equity Unlock loan. If the sale doesn’t cover the balance, borrowers may need to liquidate assets at that time to cover the difference.
Equity Boost is available in all states where HomeLight Buy Before You Sell operates, with the exception of Texas. We are working to bring Equity Boost to Texas soon.