Calque launches another “Buy Before You Sell” program

Fintech Calque rolled out an affordable version of its Buy Before You Sell program that enables homeowners to remove home sale contingencies and debt-to-income (DTI) constraints.

Dubbed the “Contingency Buster,” the product uses its Purchase Price Guarantee (PPG), a binding backup contract that if a homebuyer’s current home does not sell within 150 days, the fintech will purchase it at an agreed-upon price, the company said in a release Tuesday. 

A sale contingency in a real estate purchase contract makes the sale of a property dependent on the successful sale of the buyer’s current home. If the buyer successfully sells the home within the agreed timeframe, the contingency is removed and the purchase of the new home proceeds as planned. 

However, if the buyer fails to sell the home, the buyer has to either renegotiate the terms with the seller or withdraw from the contract without facing penalties. 

Within 24 to 48 hours of a virtual walk-through of the home, Calque can provide a binding offer decision. Once the offer is accepted by the homeowner, they have up to 150 days to sell their home on the market with Calque serving as the backup buyer if the home doesn’t sell within that period. 

“With the introduction of the Contingency Buster, we are elevating our commitment to providing faster, more cost-effective options that pave the way for seamless home buying and selling experiences,” said Michael Bremer, CEO of Calque. 

The Calque PPG will be the minimum amount required to remove the home sale contingency, according to the firm.

The Contingency Buster program is an extension of its flagship program “The Trade-In Mortgage,” which enables homeowners to tap their current home equity before they sell to make a bigger down payment, pay off debt or increase cash reserves.

Launched in 2021, Calque partners with lenders to offer its programs and allows borrowers to work with the agent of their choice and any lender in the Calque mortgage provider network.

With affordability pressures mounting due to high mortgage rates and rising home prices, Buy Before You Sell products are gaining popularity. Proptech Homelight this week raised $20 million to expand its Buy Before You Sell product to mortgage lenders and real estate agents across 40 new states.