Real estate technology firm Knock announced Thursday that its bridge loan product is being integrated into the borrower application process at Baltimore-based NFM Lending.
The bridge loan estimate is being integrated into the lender’s workflow through an Encompass plugin. NFM loan officers will be automatically notified when a homeowner can tap into the equity of their current home to buy a new one before selling.
The Knock option is available to loan officers and real estate agents in 22 states across the country, the company explained in its announcement. The product is designed to make buyer offers more attractive to sellers by removing contingencies. The financing can be used to make a down payment, pay down debt, or cover repairs and moving expenses.
“Over the past 18 months, Knock has become our go-to solution for helping homeowners compete and win in today’s housing market,” Bob Tyson, president and chief operating officer at NFM Lending, said in a statement.
“With so many of our lending officers turning to the Knock Bridge Loan as a financing solution, this integration will streamline the approval process. More importantly, it gives them another tool to differentiate themselves and provide more personalized and tailored service to their clients.”
According to Knock’s website, the company charges a fixed fee of 2.25% of the estimated list price of a client’s departing property, plus a closing fee that can vary based on the loan amount and state-specific regulations. The loan includes no interest for six months.
The Knock bridge loan also includes a “purchase guarantee,” meaning that Knock will buy the departing residence if it does not sell in timely fashion. The company claims that “the majority of our customers sell their home to someone other than Knock,” that 92% of its homes are on the market for less than 90 days, and that its average sale-to-list price has exceeded 100% over the past three years.
“NFM was the first to work with us when we gave lenders the added power of using our financing solution to help their clients access the money tied up in their current house to purchase their next home, and they are the perfect partner to launch our Encompass plugin with,” Knock co-founder and CEO Sean Black said in a statement.
“In today’s limited inventory, high interest rate environment, the biggest value a service provider can offer is helping homeowners get unstuck. The Knock Bridge Loan solves this problem by allowing homeowners to tap into the equity in their current home before they sell. They become more competitive buyers and can flip the process to move on their own terms.”
NFM Lending is licensed in 49 states and Washington, D.C. Its subsidiaries include Main Street Home Loans, BluPrint Home Loans, Elevate Home Loans and Element Home Loans.
According to data from Scotsman Guide, NFM was the 21st-largest lender in the country last year, originating nearly 15,600 mortgages with an aggregate volume of $5.62 billion.
