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Mortgage rates may be retreating from 2024 highs, but that’s not stopping Calque from bringing “The Trade-In Mortgage” — which lets homeowners tap their existing equity to make a bigger down payment and a non-contingent offer on their next home before they sell — to Oregon and other new markets.
Not to be confused with assumable mortgages, which allow buyers to “wind back the clock” by taking over the seller’s FHA, VA or USDA mortgage at yesterday’s rates, Calque claims its “buy before you sell” offerings are more cost-efficient than competing iBuyer and power buyer models.
In addition to “The Trade-In Mortgage,” which can help existing homeowners avoid private mortgage insurance by putting at least 20 percent down, Calque offers “The Move Ahead Mortgage,” which is aimed at homeowners who already have enough saved for a down payment, but want to make a non-contingent offer when buying their next home before they sell.
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Calque says that its process — it partners with a local lender who provides the purchase mortgage on the client’s next home while providing a guaranteed backup offer on the client’s existing home — is more efficient because the backup offer is rarely needed, and the home clients are buying doesn’t have to change hands twice.
This year, Calque has partnered with some big names including C2 Financial and Cornerstone First Mortgage, as well as smaller players like APEX Mortgage Group (Atlanta), Aslan Home Lending Corp. (Denver), Augusta Mortgage Company (Augusta, Georgia), Haus Capital Corp. (Rochester, New York), HMA Mortgage (Pittsburgh, Pennsylvania), Sammamish Mortgage (Bellevue, Washington) and Waymaker Mortgage Company (Austin, Texas).
Calque’s latest partner, announced Tuesday — Portland, Oregon-based Theory Mortgage — fits in the latter category. The “doing business as” name of Thrive Lending LLC, Theory Mortgage is owned by Brian DuVal and sponsors three mortgage loan originators, according to records maintained by the Nationwide Mortgage Licensing System and Registry.
Brian DuVal
“The Trade-In Mortgage offers clients an innovative lending option, utilizing the significant equity from their current home to make the purchase of their next home less stressful,” DuVal said in a statement. “In fact, utilizing equity as leverage to obtain a home can be just as beneficial as buying with cash.”
In addition to allowing homeowners who want to trade up to make non-contingent offers on their next home, The Trade-In Mortgage removes their current house from the debt-to-income (DTI) calculation when underwriting the purchase loan on their next home.
That can help borrowers get a better rate, and avoid having to take out private mortgage insurance required by Fannie Mae and Freddie Mac when buyers put less than 20 percent down.
Michael Bremer
“Despite soaring interest rates, homeowners who need to move can utilize their accrued equity to secure the most favorable mortgage for their future property,” Calque CEO Michael Bremer said, in a statement. “The Trade-In Mortgage can make a difference for homeowners in Oregon who might otherwise avoid making the right move for their family because of the economic environment.”
Founded in 2020 by Talroo executive Jeremy Foster, Calque appointed Bremer, a former CoreLogic executive, as CEO in March.
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