Knock Home Swap | How to Buy a House While Selling Your Own

Should I sell my house before buying a new one?

If you sell first, are you going to have the time to find the house that you like, win the offer, and be able to get that all ready to close by the time that your old house sells?

What if you could buy a new home, before selling your current one?

Hi, I’m Marty, broker/owner of Mr Palm Bay Realty.

Many people tell me that they need to sell their current home so that they can buy another home. This problem is very common and can be so stressful. I have an excellent solution and it’s called Knock Home Swap.

You can buy a new home before selling your old one with a pre-approved new home loan from Knock Lending.

Move in and pay only one mortgage. With Knock you only have one mortgage payment. You can move into your new home and get settled before listing your old house.

Then sell your old house for the best price. Get top dollar for your current house with up to $25,000 in home prep costs covered upfront.

There are 2 main components here: the new home purchase loan, and an equity loan on your current home.

Let’s breakdown how the program works.

The first step is to select a Realtor to help you with the process. Only a Knock Certified Agent is able to offer the Home Swap Program to their clients. Guess what? I am certified and happy to answer any questions you may have.

The next step is to submit your property for Home Swap Eligibility. To be eligible for the program, you have to have at least 30% equity or more in your home. You would need at least a 620 FICO score. Using your equity, they give you a Knock Equity Advance loan, which is similar to, but better than, a bridge loan.

The Equity Advance loan is what empowers buyers to purchase their new home without having to qualify for two mortgages, all at 0% interest. It is a complete buying and selling solution that can provide three benefits:

1) By getting approved you can make offers on a new home while receiving up to a 20% down payment advance on the new home.


2) Up to 6 months of mortgage coverage payments on the old house. You only pay mortgage payments on your new home.


3) Up to $25,000 in home prep funds to repair/update your old house so it sells fast and for top dollar. This money is used for cosmetic work - things like painting and carpeting. Not major repairs.

The Equity Advance loan comes at 0% interest, and the money advanced will be paid back when your existing house sells.

The new home purchase loan will be a conventional loan at market rates. There are no jumbo loans, FHA, or VA loan options at this time. The maximum conforming loan limit set by the Federal Housing Finance Agency (FHFA) for our area of Florida is $548,250 ($647,200 in 2022).

You’ll pay the mortgage on your new home, while Knock pays the mortgage on the old home until it sells - for up to 6 months.

Your current house must be well maintained to qualify with no major work needed and no major visual distractors nearby such as large power lines, airports or busy roads or highways. This program only applies to single-family homes, townhomes or condos that are owner-occupied or vacant, built after 1980. The program is not available for mobile homes or leased properties.

Let’s break down what it costs.

With Knock Home Swap, you purchase your new home before you sell your old house.

When you close on your new home, you’ll pay a 1.25% convenience fee based on the price of your new home. This is similar to the origination fee, typically 1%-2%, that other lenders charge. You can opt to roll this fee into your new mortgage, or pay it as cash out of pocket closing of the new home.

As the lender, Knock charges a flat administrative fee of $1,700 as of March 1, 2022 (processing and underwriting), which is slightly less than what other lenders do. For all loan related costs, Knock Lending will provide loan estimates to you at the beginning of the process, as required by the CFPB, so you'll be fully informed prior to making any offers.

Also, a key point is the purchase contract must close with Knock’s Preferred Title/Closing Company for the Home Swap Loan. In our area of Florida that would be First American Title. This is because they close the purchase loan, and equity advance loan simultaneously. This is the only purchase requirement in the program.

The Knock Home Swap program is currently offered in a few states, and more locations are being added all the time. Look at this map to see if you can do a Home Swap move the Palm Bay area. The numbers indicate the number of metropolitan areas in that state. Contact me with your address and I can look it up. to see if your are qualifies.

Did you know that you can purchase new construction as part of your Home Swap too? Ask for details.

So, that’s the Knock Home Swap program. You can swap the house you have for the home you want.

Marty Piatkowski,
Broker/Owner Mr Palm Bay Realty
321-615-8830
[email protected]