I'm not sure which lender you're talking about, but I know Fairway has something like this. If you read the fine print though it's all just talk. This is directly from their website, see the very bottom where it states, "Note: If the seller opts to have Fairway purchase their home, Fairway will pay the appraised value or the contract price, whichever is lower."
So basically it's a cash guarantee, with an appraisal contingency but no room for seller to negotiate on appraised value.. which is the exact opposite of a cash offer
FAIRWAY CASH GUARANTEE ADVANTAGES:
Seller will receive a CASH GUARANTEE.
Buyer can COMPETE with CASH OFFERS.
Borrower does NOT have to pay any additional fees to use this program.
If the guarantee is triggered, the seller may opt for Fairway to NOT buy their home, and instead walk away from the deal with $10,000 paid by Fairway, and the contract terminated.
ADDITIONAL REQUIREMENTS/DETAILS:
Borrowers must have a Fairway Advantage Pre-Approval
Borrowers must be financing with FHA, VA, or Conventional loan
Borrower must be purchasing a single-family residence
Note: If the seller opts to have Fairway purchase their home, Fairway will pay the appraised value or the contract price, whichever is lower. Some condo's may be acceptable under this program too, ask your loan officer for more details.
I'm not sure which lender you're talking about, but I know Fairway has something like this. If you read the fine print though it's all just talk. This is directly from their website, see the very bottom where it states, "Note: If the seller opts to have Fairway purchase their home, Fairway will pay the appraised value or the contract price, whichever is lower."
So basically it's a cash guarantee, with an appraisal contingency but no room for seller to negotiate on appraised value.. which is the exact opposite of a cash offer :lol:
FAIRWAY CASH GUARANTEE ADVANTAGES:
Seller will receive a CASH GUARANTEE.
Buyer can COMPETE with CASH OFFERS.
Borrower does NOT have to pay any additional fees to use this program.
If the guarantee is triggered, the seller may opt for Fairway to NOT buy their home, and instead walk away from the deal with $10,000 paid by Fairway, and the contract terminated.
ADDITIONAL REQUIREMENTS/DETAILS:
Borrowers must have a Fairway Advantage Pre-Approval
Borrowers must be financing with FHA, VA, or Conventional loan
Borrower must be purchasing a single-family residence
Note: If the seller opts to have Fairway purchase their home, Fairway will pay the appraised value or the contract price, whichever is lower. Some condo's may be acceptable under this program too, ask your loan officer for more details.