Tired of losing out in today’s highly competitive market? Back your offer with the power of Planet’s Cash 4 Homes Closing Guarantee and secure your dream home!
Planet guarantees to close your loan on time, or we will buy the home from the seller for cash.
How does the Cash 4 Homes Program work? The Cash 4 Homes Program allows you to waive the financing contingency when you make your offer to purchase a home. If you are not able to obtain financing before the closing date, Planet Management Group, LLC (“PMG”), a subsidiary of Planet Home Lending, LLC (“Planet”), will purchase the home from the seller and you will purchase the home from PMG once your financing is approved. This gives the seller peace of mind since the sale of the property is not contingent on your ability to obtain financing.
Will my Cash 4 Homes offer contain other contingencies? Yes, to make the Cash 4 Homes Program work, we’ll need to ensure that you have the right to inspect the property and obtain an appraisal.
How much does the Cash 4 Homes Program cost? The total cost to you can range from 0% to 3% of the purchase price depending on whether you obtain financing timely with Planet and whether PMG is required to purchase the home. The full details regarding the cost of the program are set forth in the program agreement. However, the below table sets forth a summary of the total program costs.
Example 1 – You enter into the Cash 4 Homes Program with PMG, but ultimately purchase the home from the seller at closing and obtain a loan through Planet.
No cost - You will not pay any additional cost associated with the Cash 4 Homes Program.
Example 2 – You enter into the Cash 4 Homes program with PMG, but you are unable to obtain financing prior to the agreed upon closing date and PMG purchases the home from the seller at closing. PMG then sells the home to you once you’ve obtained a loan through Planet.
3% Total Cost - When you purchase the loan from PMG, you will pay an additional origination fee of 1%, as permitted by applicable law, as well as a 2% markup on the sales price.
The end result is that you will pay an amount up to 3% of the purchase price.
Am I eligible for the Cash 4 Homes Program? To determine eligibility, you’ll need to work with a Planet mortgage specialist. However, to be eligible for the program you’ll generally need to satisfy the following requirements: (1) Be using the loan to purchase your primary residence; (2) Be using the loan to purchase an existing home (i.e. you cannot use the loan for new construction or renovations); (3) Be using the loan to purchase a property located in an eligible metropolitan location; (4) Be looking for a conventional conforming, conventional high balance, FHA, or VA loan; (5) Be eligible for automated underwriting; (6) Have a minimum FICO score of 640; (7) Have a loan to value ratio of 95% for conventional loans and 96.5% for FHA and VA loans; (8) Have obtained a Cash 4 Homes preapproval; (9) Be using Planet to finance your loan.
Terms and Conditions:
The Cash 4 Homes Closing Guarantee provides a seller a guarantee from Planet Management Group, LLC(“PMG”) that Planet Home Lending, LLC (“Planet”) will close on or before the purchase contract closing date or PMG will purchase the home from the seller for cash. To qualify for this guarantee, the following must be met:
The closing date must be 21 business days or later from the date of the fully executed purchase contract. If the loan is not closed by the purchase contract closing date or the applicable extension date, the property will be purchased from the seller by PMG for the purchase price or appraised value, whichever is lower. This guarantee is not an offer or an inducement by Planet to enter into an agreement to make a loan, nor a guarantee or lock of a specific interest rate or number of discount points.
Planet does not have control over third-party delays, including but not limited to appraisers, title companies, and other settlement providers. Available in all Planet licensed states, except U.S. Virgin Islands, Puerto Rico, D.C., HI, MA, and NY. Limited to eligible metropolitan statistical areas. Rural properties are not eligible. Loan programs ineligible for this guarantee include, but are not limited to, Bond Loans, USDA, Renovation, Fannie Mae HomeReady, FHA 203K, Jumbo, Non-QM, Down Payment Assistance Programs, and Manufactured Housing.
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