Qualify for your next home without selling first.
If your current mortgage payment is preventing you from qualifying for the next home, a Guaranteed Backup Contract may allow you to move forward — without selling first.
You stay in control of the sale.
- Use your own Realtor
- List at your chosen price
- Accept any stronger offer that comes in
- Keep all proceeds above the backup price
- The backup only triggers if your home doesn't sell in 180 days
How it works, in plain English
- The problem: Your current housing payment pushes your debt ratios above what the new mortgage program will allow.
- The solution: A Guaranteed Backup Contract from a vetted institutional third-party buyer is a written, non-contingent offer to purchase your current home.
- The effect: Because the backup offer exists, many mortgage programs allow your current house payment to be excluded during qualification, so you can buy the next home.
- You still: Pick your own real-estate agent, list at your price, accept any offer above the backup price, and keep the difference.
- The backup only triggers if: 180 days pass without an open-market sale.
How it works, step by step
- 1
Receive a guaranteed backup offer on your current home
A vetted institutional third-party buyer issues a written, non-contingent offer to purchase your current home at a guaranteed price.
- 2
Qualify for the new home without counting your current payment
With the backup contract in place, many mortgage programs allow your current house payment to be excluded during qualification. You can now qualify for the next home. The backup contract isn't the only path — see the other ways to qualify without selling first.
- 3
Buy the next home before selling
You make a strong, non-contingent offer and close on your next Arizona home — without waiting for the current one to sell.
- 4
Sell your old home normally — and keep the upside
You list with the agent of your choice at your price. You keep all proceeds above the backup price. The backup only triggers if your home doesn't sell on the open market within 180 days.
Example scenario
A homeowner in Gilbert wants to buy a new home in Scottsdale. Their income supports the new payment, but qualifying with two mortgage payments on paper pushes them over the program's debt limit.
The Guaranteed Backup Contract lets the current house payment be excluded during qualification. They qualify for the next home, close, move in, and then list their Gilbert home normally on the open market — keeping any sale proceeds above the backup price.
Hypothetical example for illustration only. Actual outcomes vary based on individual financial profile, property value, market conditions, and program qualification. Not a commitment to lend.
Backup contract pricing (GBC fee tiers)
Cost is tiered by the guaranteed offer price on your current home.
| Guaranteed price up to | Fee |
|---|---|
| $500,000 | $2,500 |
| $750,000 | $3,500 |
| $1,000,000 | $5,000 |
| $1,500,000 | $7,500 |
| $2,000,000 | $10,000 |
| > $2,000,000 | Reviewed on exception |
In some cases, reducing the guaranteed offer amount can lower the program cost while still accomplishing the qualification goal — we'll walk through both options in the consult.
Compare against national alternatives. Many "buy before sell" programs charge 2–3% of the home's value, which can mean tens of thousands of dollars in fees on a typical Arizona move-up sale. Our Guaranteed Backup Contract is a transparent flat fee starting at $2,500. The math is meaningful at every price point.
Comparison reflects publicly published fee structures from competing national "buy before you sell" programs. Each provider's pricing varies; verify current pricing with each provider before deciding.
Eligible loan programs
The backup contract works with most major loan programs that allow the current house payment to be excluded during qualification when a non-contingent backup offer exists.
| Program | Eligible? |
|---|---|
| Conventional | Yes |
| Jumbo | Yes |
| Self-employed (bank statement, P&L, asset) | Yes |
| FHA | No |
| VA | No |
| Down Payment Assistance (DPA) | No |
This is commonly used by:
- Homeowners upgrading to a larger home
- Buyers who found the next home before listing theirs
- Families relocating within Arizona
- Buyers losing out because of contingent offers
- Homeowners with strong income who get blocked on qualification
- Buyers competing in Scottsdale, Chandler, Gilbert, Paradise Valley, Queen Creek, and Phoenix
- Buyers who want to move on their timeline, not their buyer's
- Anyone tired of asking permission to make a clean offer
Selling the home, what stays in your control
- Your listing agent. You pick. The backup contract is financing, not a referral.
- Your list price. You and your agent set strategy.
- Your timeline within 180 days. You can accept any open-market offer above the backup price and pocket the difference.
- Cancellation. When the home sells on the open market, the backup contract is canceled.
What happens if it doesn't sell in 180 days?
The backup buyer purchases the property at the guaranteed price agreed up front. They then handle any necessary repairs and resell it. Net sale proceeds above transaction and repair costs are returned to the seller.
This program works best for homes that are realistically marketable within the 180-day timeframe, we'll help you evaluate that honestly during the consultation.
Backup contract FAQ
What is a backup offer / backup contract?
It is a real, written, no-strings offer to buy your current home from a vetted outside buyer at a price you agree to up front. Because that safety-net offer already exists, many loan programs let us leave your current house payment out of the math when you apply for the next home, so you can buy first and sell on your own schedule.
Will sellers accept a contingent offer?
Often they will not. When you ask a seller to wait until your home sells, your offer can fall apart, so in a busy market sellers tend to pick buyers who do not have that condition. With a backup contract behind you, we can leave your current payment out of qualifying, which lets you write a clean, no-strings offer that competes head-to-head.
Does the backup contract force me to sell to the backup buyer?
No. You list and market the home normally with the agent you choose, at the price you set, and you keep every dollar above the backup price. The backup buyer only steps in if your home has not sold on the open market within 180 days. Most clients sell on the open market and never use the backup.
Which is cheaper for me, the backup contract or a no-sale loan?
It depends on your credit and down payment. For many buyers, pairing a conventional or jumbo loan with our flat-fee backup contract is the more economical route. A loan that qualifies you without selling first trades a little on cost for the freedom of not selling. We run both and show you which is cheaper for your situation, with the full fee in writing and no rate guesswork.
Can I combine a backup contract with a bridge loan?
Yes. If you also need cash for the new down payment, pairing the backup contract with our in-house bridge loan covers both roadblocks at once: cash for the new home, plus the qualifying relief that lets your current payment be left out. We map both pieces in one plan.
A smarter way to compete in Arizona's market.
Bring your current home value, mortgage balance, and target purchase price. We'll model the backup-contract tier and what your qualification looks like with the current payment excluded, so you can make stronger, non-contingent offers.
Free consultation