Frequently Asked Questions

Why would my client want to use a Guaranteed Backup Offer?

One of the biggest challenges to getting approved non-contingent is debt-to-income ratio. By using a Guaranteed Backup Offer, the underwriter to exclude the departing residence liabilities from the debt-to-income ratio.

How does the GBO work?

We write a cash offer on your client’s departing residence. They have 180 days from the closing on their new home to accept a better offer on their departing residence. In the unlikely event that they don’t receive a better offer, we will purchase the home, re-list it, and sell it. Any additional proceeds are then distributed to your client. We never make any money off of the sale of the home.

Does the loan for the new purchase need to be a specific type of loan?

Yes, the loan for the new purchase needs to be a conventional loan.

How do I know if my client’s departing residence is eligible for a GBO?

Click HERE to submit a request form. Or, feel free to call us at (616)816-1640. Generally, if your borrower intends to sell their departing residence and has at least 25% equity, they’re a good candidate.

How much does it cost my client?

$2,449.

When is that payment due?

Upon signing the GBO (which doesn’t need to happen until after they go under contract to purchase their new home).

I have more questions, who should I talk to?

Feel free to call Josh Gerard at (616)816-1640 or schedule a time on his calendar here.