How a Non-Contingent Offer Can Help You Buy Before You Sell
Making a non-contingent offer in today’s competitive housing market can be the difference between winning your dream home—or losing out to a more prepared buyer.
If you’re a homeowner who wants to buy a new home before selling your current one, but aren’t sure how to manage the financial overlap, there’s a strategic solution that allows you to move forward without making your offer contingent on a home sale.
It’s called a Non-Contingent Guaranteed Backup Contract, and it’s giving buyers more control, flexibility, and buying power.
A Hypothetical Scenario: How the Thompson Family Could Benefit
Imagine a family—let’s call them the Thompsons—who’ve outgrown their starter home. With two kids and a dog, they’re ready to upgrade to a larger home with a yard and better school district.
The catch? They can’t qualify for a new mortgage while still carrying their current one. Listing their home before buying feels risky, and they don’t want to miss out on a great new property.
This is where a non-contingent offer using the Guaranteed Backup Contract comes in. It allows the Thompsons to move forward with confidence, knowing they have a fallback plan if their home doesn’t sell in time.
“This program is designed to give families like the Thompsons the peace of mind and flexibility they need. You can move forward without being contingent on selling first, and that makes all the difference in today’s fast-moving market.” – Nathan Jennison, Mortgage Architects
What Is a Non-Contingent Guaranteed Backup Contract?
It may sound complex, but it’s surprisingly straightforward.
How It Works:
- It’s a simple purchase contract placed on your current (departing) residence.
- This contract lets you make a non-contingent offer on a new home.
- It improves your debt-to-income ratio, making it easier to qualify.
- You get up to 120 days post-purchase to sell your existing home.
- A lender guarantees to buy your home if it doesn’t sell, protecting your transaction.
Why It Works: Backed by Fannie Mae Guidelines
This program isn’t just clever financing—it’s backed by Fannie Mae. Here’s why that matters:
- With a signed, executed contract on your current home, lenders can exclude that mortgage from your debt-to-income ratio.
- This dramatically increases your ability to qualify for a new mortgage.
- The program has been structured to meet Fannie Mae standards, offering legitimacy and security.
Cost Breakdown: Affordable Peace of Mind
You might expect a program like this to come with a hefty price tag. But the cost is surprisingly reasonable.
- Flat Fee: $2,500
- Minimum Down Payment: 5% (for a conventional loan)
- Other Fees: Standard loan closing costs still apply
For just $2,500, you unlock the ability to make a strong, non-contingent offer and reduce the financial stress of juggling two properties.
Who Should Consider a Non-Contingent Offer?
This strategy is ideal for homeowners in several common scenarios:
You Should Consider It If:
- Your home is listed or under contract, but the buyer backs out last minute.
- You’ve found your dream home but haven’t sold your current one.
- You want to make a stronger, more competitive offer.
- Your debt-to-income ratio is too high with both mortgages included.
What’s the Catch? Worst Case Scenario Explained
Every program has its fine print, and this one is no exception.
- The lender’s offer will be around 78% of your home’s estimated market value, based on an automated valuation model.
- If the home doesn’t sell within 120 days, you can request an extension—but the absolute deadline is 180 days.
- If the lender buys the home:
- They’ll use your original listing agent to resell it.
- 90% of the net profit (after costs) from the resale goes back to you.
This protects you from major losses, and ensures the lender has no interest in profiting from your property—they just want to ensure the deal can close.
“This lender isn’t in the business of buying homes—they’re offering a guarantee to protect you. In most cases, they never have to buy the property at all.” – Nathan Jennison
Program Limitations to Keep in Mind
Before moving forward, it’s important to know:
- This program is only available for conventional loans.
- It does not work with FHA, VA, or USDA loans.
However, for buyers using conventional financing, it’s a game-changer.
Combine It with Other Mortgage Solutions
This isn’t a standalone tool—you can layer it with other programs for maximum benefit:
- 💰 Home Equity Unlock Program
- 💸 Cash Offer Programs
This gives you the flexibility to create a financing strategy that fits your exact situation.
Final Thoughts: Empower Your Next Move with a Non-Contingent Strategy
A non-contingent offer gives you leverage in a hot market, reduces stress, and provides peace of mind that your current home will sell—or be backed by a lender if it doesn’t.
If you’re ready to buy your next home and want to avoid the typical pitfalls of buying before you sell, reach out to Nathan Jennison and his team at The Mortgage Architects to explore your options.
“At the end of the day, it’s about giving you options. You don’t have to feel stuck. This program helps you move forward confidently—whether you’re upsizing, downsizing, or just making your next move.” – Nathan Jennison
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