FAQs | Homeward

It normally takes 48 hours for us to review and approve your application. In some cases, we can expedite this process if you need to make an offer more quickly.

If you’re interested in using Homeward, we suggest you get approved as soon as possible. That way, you’re ready to make an offer as soon as the home you want comes on the market.

What information do I need to provide to get approved?

Whether you’re using Buy before you sell or Buy with cash, you’ll complete our application. We do this to ensure that you can buy back your new home from Homeward after we make an all-cash offer on your behalf. This does not obligate you to use Homeward Mortgage, but once you’re approved, you have that option. For this step, we need information about your income, assets and credit.

If you are using our Buy before you sell service, we also collect information about your current home to calculate how much home equity you have. You’ll fill out a questionnaire about your home and upload photos of it (we don’t need anything fancy; cell phone photos are fine).

If I am already pre-approved for a mortgage, do I need to go through the approval process with Homeward?

Yes. We approve you to use our Buy before you sell or Buy with cash services, so, you will have to complete the approval process with us even if you’re already pre-approved for a mortgage with a lender.

Can you help me purchase new construction?

Yes. In addition to the standard information we collect during the approval process we’ll also need the following:

1. Details about the floor plan and specifications of your new home
2. The home’s price
3. What stage of construction the home is in (percentage of completion)
4. Your proposed closing date

My current home is already under contract. Can you still help me make an all-cash offer?

Yes. In addition to the standard information we collect during the approval process we’ll also need the following:

1. A link to your new home’s listing
2. A copy of your purchase contract

How do you determine how much equity I have in my home?

Our team of analysts conducts a thorough market value assessment of your home using publicly available real estate data.

What happens after I’m approved with Homeward?

We approve you for a specific amount so you can start shopping and be ready to make an offer as soon as the home you want comes on the market. Then we’ll review that property and work with your agent to make an all-cash offer.

All-cash offers

What is an all-cash offer and why is it better?

All-cash offers don’t require any financing because there is no mortgage attached. They’re better because they are not contingent upon financing. Cash offers are three times more likely to win than financed offers and they close faster.

Where do you get the cash to buy my new home?

We are backed by large institutional investors that give us access to the funds we use to help make you an all-cash buyer.

What solutions do you offer to help me make an all-cash offer?

Our Buy before you sell solution is for people who need to sell an existing home and buy a new home.

Our Buy with cash solution is for people who want to buy a new home but don’t need to sell an existing home. Both solutions enable you to make a more competitive, all-cash offer.

How do you make money?

We charge a convenience fee that can be rolled into the mortgage for your new home. Because the cost of doing business varies from state to state, so does our fee. To learn more about convenience fees, visit the Buy before you sell or Buy with cash pages, depending on which service you’re using.

PRICING and FEES

How much does it cost?

You’ll pay a small convenience fee to become an all-cash buyer. You’ll also pay prorated rent on your new home until you buy it back from us. We defer your rent payments until closing. See more about rent below.

Because the cost of doing business varies for us from state to state, so does our convenience fee. To learn more about convenience fees, visit the Buy with cash or Buy before you sell pages, depending on which service you’re using.

If you choose to use Homeward Mortgage, they offer a price match guarantee and competitive rates. For more information, visit the Homeward Mortgage website.

When do I pay the fee?

There are no upfront costs. You’ll pay the convenience fee — and your rent — when you buy the home back from us. You can usually add the convenience fee to the purchase price of your home and roll it into your mortgage.

What if I make an offer that doesn't win?

You will not pay any fee if you make an offer that doesn’t win.

Are Homeward Mortgage's rates competitive?

Yes, Homeward Mortgage’s rates are competitive. They even offer a price match guarantee. Visit Homeward Mortgage for details.

Do I have to use Homeward Mortgage to use your services?

No, you don't have to use Homeward Mortgage, but you get a significant discount via a credit at closing when you do.

Tell me more about rent.

You’ll pay rent from the day we purchase your new home on your behalf until the day you purchase it back from us. We prorate your rent by the day and defer your rent payments until closing.

How does insurance work while I’m renting my new home from Homeward?

Our insurance does not cover your personal property. We highly recommend you get renter’s insurance before you move so that your belongings are covered during the move and while you rent from us. Make sure you understand exactly what your policy covers in case you need to buy additional policies (for example, coverage for floods, big ticket items, an at-home business, etc.) to fill any coverage gaps.

Will I need to pay a security deposit to rent my new home?

No, you will not need to pay a security deposit.

Are pets allowed while we’re renting the home?

Of course. We know you consider your pets part of the family and they’re welcome.

Do you mark up the house price when you sell it back to me?

No. We do not mark up the price. You’ll pay the home purchase price plus your convenience fee and rent when you buy back your home from us. In most cases, you can roll your convenience fee into your mortgage.

What happens if I sell my current home and am able to purchase my new home before Homeward’s closing date?

If you’re using our Buy before you sell service and don’t end up needing our cash to close on the purchase, we’ll reduce your convenience fee to 1% for securing the property. This doesn’t happen often, but it could happen if you sell your home faster than expected.

Do I have to make an earnest money deposit when I use Homeward?

Yes, you will need to make an earnest money deposit (EMD). Earnest money is a deposit you make to the seller that represents your good faith to buy the home. This deposit is not a fee. These funds will be applied as a credit to your down payment at closing.

We require you to make this earnest money deposit within 48 hours of the seller accepting your offer. Because we assume greater risk making an all-cash offer on your behalf, homebuyers using Homeward services make a slightly larger EMD than in a traditional transaction. We require a 3% EMD for our Buy with cash service and a 2% EMD for our Buy before you sell service. Traditionally buyers put down 1%, but we charge a bit more because we incur more risk when we hold the house for you. If you are buying a home that costs more than $1 million, we may require a larger EMD.

BUYING A HOME

Can I use my own agent?

Yes. Buying a home is one of the biggest financial decisions of your life. We believe you should make it with the help of a real estate professional. And unlike some alternative real estate companies, we don’t assign an agent to you. We encourage you to work with an agent you choose and trust.

Does my agent still make money off the transaction?

Yes. Working with us does not affect your agent’s commission.

How do I buy a home with Homeward?

Here’s how buying a home works when you use our services:

Get approved. We approve you for a specific amount so you can start shopping and be ready to make an offer as soon as the house you want comes on the market.
Make an all-cash offer. We work with your agent to make a cash offer on your new home. Cash offers are three times more likely to win than financed offers.
Win the home. The seller accepts your offer. We work with your agent during the option period to finalize the purchase. You’ll have a few tasks to complete, too, including paying your earnest money deposit, scheduling an inspection and signing mortgage disclosure documents.
Move into your new home. Live in your new home while you rent it from us.
Buy back your new home. Finalize your mortgage and, if applicable, complete the sale of your old home. Then close on your new home by buying it back from us.

To see even more detail about each of these steps, check out our Buy Before You Sell Guide.

What if I need to sell my existing home before I can buy back my new home from Homeward?

Most of our customers need to sell their existing home in order to buy back their new home from us. You can list your existing home anytime after Homeward completes the purchase of your new home. You can skip the hassle of showing the house while you live in it and maximize your sales price by moving into your new home first. For more information about selling a home when you use our Buy before you sell service, see the “Selling a Home” section below.

Is Homeward a mortgage lender?

No, Homeward Inc. is not a financial institution. We are a business entity that purchases homes to secure them for you, our customers, who will eventually buy them back. Our affiliated company, Homeward Mortgage, is a mortgage broker.

Are there benefits to using Homeward Mortgage instead of another mortgage company?

Yes, there are several:

Homeward Mortgage offers a price match guarantee, so you can be sure you’re getting the best deal.
Homeward Inc, Homeward Mortgage and Homeward Title are affiliated companies so we can offer you a more streamlined experience.

When you use Homeward Mortgage, we credit part of your convenience fee back to you at closing so you save even more money. To learn more about convenience fees and credits for using Homeward Mortgage, visit the Buy before you sell or Buy with cash page, depending on which service you’re using.

I found a property I want to make an offer on. Now what?

Congratulations! You and your agent will provide us with some details so we can review your offer and then make an all-cash offer on your behalf. We’ll need the property address and offer price. We’ll contact your agent as soon as we approve the offer, typically within four hours.

Who makes the offer to the seller?

You’ll work with your agent to make, negotiate and finalize the offer with the seller.

Who orders the inspection?

As the homebuyer, you are responsible for ordering the inspection as part of the approval process.

Who orders the appraisal?

If you use Homeward Mortgage, we will order the appraisal. If you use a different lender, they will order the appraisal. If you plan to buy back your home without a mortgage (i.e., with cash), you will order the appraisal yourself.

Why are there two closings with two different contracts?

When you make an all-cash offer with Homeward, there are two transactions: first, we buy the home for you (we call this the Homeward Purchase); then, you buy the home from us (we call this the Customer Purchase). There is a separate contract for each of these transactions.

How fast can you close?

For Buy before you sell clients we can close in as few as 21 days. For Buy with cash clients, we can usually close in as few as 14 days. Compare this to the 30-60 days it typically takes traditional mortgage-backed offers to close. This is not only better for you, but more attractive to sellers, which is another reason your all-cash offer is three times more likely to win than a financed offer.

What happens when Homeward closes on my new home?

You won’t attend the closing. Your agent will be responsible for getting the keys to your new home to you. You’ll take possession as soon as we close on it. You’ll also set up utilities in your name at this point.

How soon do I have to buy back my new home from Homeward?

You have six months from the time we close on the home to buy it back from us. So when we create the Customer Purchase contract, we say your closing date is on or before that six-month mark. But our goal is the same as yours: to get you into your new home as soon as possible. On average, our Buy before you sell clients buy back their new home from us in 45 days. Our Buy with cash clients, who don’t have an existing home to sell, buy it back even faster.

What does “possession pursuant to leaseback” mean?

Our Customer Purchase contract states that you can take possession of the home as soon as we close on it, which is when your rental period begins (i.e., pursuant to a lease instead of pursuant to closing).

How do you handle the residential service fee in Texas?

In Texas, real estate contracts include a section dedicated to negotiating a credit from the seller to cover a residential service agreement (also known as a home warranty). If the seller gives us a credit for a residential service fee on the Homeward Purchase contract, we allow you to obtain the policy in your name at the time of the Homeward Purchase closing. So, you will not see a duplicate credit in the Customer Purchase contract.

SELLING A HOME

Will you buy my old home?

We help you buy your new home and enable you to work with your agent to sell your existing home for its full value. We only buy your existing home if you’re unable to sell it on the market within six months and if you’re eligible to receive a floor price from us.

What is Floor Price Certainty?

Floor Price Certainty simply refers to our promise to buy your existing home from you if you can’t sell it on the market within six months. Most homebuyers who use our Buy before you sell service qualify for this guarantee, but 99% of our clients sell their homes on the market so they never have to rely on Floor Price Certainty.

How do you determine my floor price?

We base your floor price on publicly available real-estate data, current photos of your home, and an in-home inspection. Your floor price is typically 90-95% of your home’s market value. We also deduct the standard 6% agent commission fees.

What happens if you buy my home at the floor price?

If we buy your existing home, we’ll put it back on the market and sell it. You’ll pay us the standard 6% agent commission, which we’ll use to cover any real estate agent and title fees.

For Agents

WORKING WITH us

What is Homeward and what do you do?

We are a new kind of home finance company. We enable you to help your clients make winning, all-cash offers and buy their new home before they sell their existing one.

We offer mortgage and title services through our affiliates, Homeward Mortgage and Homeward Title. This allows us to streamline the cash buying process. We do not require your clients to use our affiliates, but we offer them discounts if they do.

Are you a bridge loan financing company?

No we are not. We do not offer a private bridge loan. What we do is buy your client’s home with our cash and hold it for them until they can secure a mortgage and buy it back.

What type of client is Homeward suitable for?

Our services are great for nearly all of your clients, whether they already own a home or not.

Our Buy before you sell solution works best for homebuyers who already own a home and who:

need to sell their existing home to finance the purchase of their next home.
have small children and pets, making them reluctant to show their home while they’re living in it, and they’d rather move out first.
want to move out of their home and fix it up before listing it.
want to renovate their new home before moving in and only want to move once.
want confidence that their existing home will sell, no matter what.

Our Buy with cash solution works best for homebuyers that aren’t also selling a home and who:

keep losing out to more competitive bidders because of contingent offers.
want to buy a home in a neighborhood with low inventory and high demand so they need to make their offer more attractive.
Want to eliminate major contingencies and close faster.

What are the benefits of working with Homeward?

Most alternatives to traditional real estate transactions minimize or replace the agent. We’re an agent-led company. We believe agents are more important than ever, so we partner with you to help you:

Offer innovative solutions to common homebuying problems
Generate more leads
Convert more leads into clients
Win more offers and close faster

Can I still represent my client on the purchase and sale side?

Yes, you can. Working with Homeward does not change your client relationship and you still earn your full commission.

Can you help my client purchase new construction?

Yes. In addition to the standard information we collect during the approval process we’ll also need the following:

Details about the floor plan and specifications of your client’s new home
The home’s price
What stage of construction the home is in (percentage of completion)
Proposed closing date

THE transaction

Who represents Homeward in the home purchase?

You do. You’ll represent us in the purchase of the home from the seller and you’ll represent the home buyer when they buy back the home from us. You’ll sign a Limited Buyer Representation (LBR) and Referral Agreement that allows us to hold the commissions until the home buyer buys the home back from Homeward.

Who actually buys the house when we make the all-cash offer?

Homeward Properties, LLC will be listed as the buyer and one of our authorized signers will sign on behalf of our company.

Why are there two disbursement authorizations (DAs)?

When you make an all-cash offer with Homeward, there are actually two transactions: first, we buy the home for your client (we call this the Homeward Purchase or HP); then, your client buys the home from us (we call this the Customer Purchase or CP). There is a separate contract for each of these transactions.

The law requires that the agent’s brokerage provide a disbursement authorization (also known as a Commission Disbursement Authorization) to the title company or closing attorney, detailing how the commissions should be disbursed. Because Homeward transactions involve two contracts, we need a DA for each contract.

What if my buyer decides not to buy back the home after Homeward purchases it?

In this rare case, we would keep the earnest money, buyer agent commission, and any amount of the additional deposit needed to cover our costs to resell the home. The customer would also owe us rent for the period beginning when we purchased the property and ending the day they moved out.

Cost and commissions

How much does it cost?

Your client will pay a small convenience fee to become an all-cash buyer. This does not impact your commission. Because our cost of doing business varies from state to state, so does our convenience fee. For details, please see the Buy before you sell and Buy with cash product pages. Your client will also pay rent on their new home until they buy it back from us.

When does my client pay the fee?

There are no upfront costs. Your client will pay the convenience fee — and rent — when they buy the home back from us.

Tell me more about rent.

We prorate the rent by the day and defer rent payments until closing. We don’t mark up rent.

WHO TO CONTACT

Customer Experience Managers

Yes though you’ll find our standard options to cover the vast majority of your needs. If not, get in touch and we’ll create something custom.

WHO MIGHT REACH OUT

These Homeward specialists may reach out to you directly to ensure everything remains on track.

Approval Specialists

email@website.com

(512) 572-6853

Your Approval Specialist ensures your mortgage application is complete and may request supporting documents.

Transaction Support

email@website.com

(512) 399-6237

Transaction Support assists with your approval to use Homeward’s cash offer, and the closing of your new home.

Buyback Specialists

email@website.com

(512) 399-6237

Buyback Specialists can help with anything related to rent, insurance, or home warranty.

Mortgage Processors

email@website.com

(512) 668-7495

Once you find a home, your Mortgage Processor becomes your primary mortgage contact until closing.

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