The $2,500 Guaranteed Backup Contract: A Complete Walk-Through
If your qualifying math breaks the moment a second mortgage payment shows up on paper, the Guaranteed Backup Contract is the cleanest, cheapest way out. This is the full walk-through, including the actual pricing tiers, what triggers the backup, and what stays in your control.
The qualifying problem, in one paragraph
Mortgage underwriting works off your debt-to-income ratio (DTI): your monthly debts divided by your monthly gross income. When you’re trying to buy a second home before selling your first, the underwriter has to count both housing payments, your current full housing payment (principal, interest, taxes, insurance, and any HOA dues) plus the new home’s. For most move-up buyers, that combined number is too high, and the loan is denied or the buyer is forced into a sale-of-home contingency that sellers won’t accept in a competitive Arizona market.
What the Guaranteed Backup Contract is
A Guaranteed Backup Contract (GBC) is a written, non-contingent offer from a vetted institutional buyer to purchase your current Arizona home at a guaranteed price. Because that offer exists, multiple loan programs allow your underwriter to exclude the current home’s full housing payment from the qualifying math, your current housing payment effectively disappears from qualifying math.
The GBC is a financing tool, not a sale. You still list your home with the agent of your choice. You still negotiate. You still keep upside above the backup price if you sell on the open market.
How it works, step by step
- Submit the home. We send the property to the institutional buyer for an internal valuation.
- Backup offer issued. You receive a non-contingent written offer from the backup buyer, issued against fair-market value of your current home. The program includes an equity pledge that protects homeowners, ask about it in the consult.
- Qualifying is fixed. The new mortgage underwriter leaves the current full housing payment out of your qualifying math.
- You buy the new home. Clean offer, no sale-of-home contingency, normal close.
- You list and sell normally. Your agent, your price strategy, your timeline within the 180-day window.
- Backup either cancels or triggers. Sell on the open market in 180 days → backup contract is canceled. Don’t sell → backup buyer purchases at the guaranteed price.
Pricing tiers — what it actually costs
Pricing is tiered by the guaranteed offer price (not by your home’s sale price).
| 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 |
You can request a lower offer price to reduce cost. The offer only needs to exceed the outstanding lines on the property, including the HELOC limit, regardless of how much you’ve drawn. Smaller backup offer = lower fee.
Apples-to-apples comparison. National Buy Before You Sell competitors typically charge 2.4% of the sale price plus closing costs. On a $750,000 Scottsdale sale, that’s roughly $18,000. Same outcome, very different bill. The Cornerstone GBC is a flat-tier program, savings of $10,000–$15,000+ are normal at mid-market price points.
Loan programs that qualify
Programs that play well with the GBC:
- Conventional: eligible.
- Jumbo: eligible.
- Self-employed (bank statement, P&L, asset): eligible.
- FHA, VA, and Down Payment Assistance (DPA): not eligible.
What stays in your control
- Your listing agent. Your choice. The backup contract is financing, not a referral or commission grab.
- Your list price and strategy. You and your agent decide.
- All open-market upside. If you sell for more than the backup price, you keep every dollar above it.
- Your timeline within 180 days.
The 180-day window
You have 180 days from the contract’s effective date to sell on the open market. Most Arizona homes sell well within that window. If yours doesn’t, the institutional buyer purchases at the guaranteed price, makes any necessary repairs and upgrades, and resells the property. Net sale proceeds above the transaction and repair costs are returned to the seller.
Be honest with yourself in the consult: if you have real reason to believe the home will take longer than 180 days to sell (an unusual property, a difficult micro-market, deferred maintenance), the GBC may not be the right fit, and we’ll say so.
Pairing with a bridge loan
If your roadblock is both qualifying and down-payment cash, you stack. The bridge loan hands you the cash; the GBC fixes the qualifying side. Two tools, one underwriting file, one close.
When it’s not the right fit
- Your loan program is FHA, VA, or Down Payment Assistance (DPA), not eligible.
- You have real concerns the home won’t sell in 180 days.
- The property’s outstanding lines (mortgage + full HELOC limit) exceed what the backup offer can be.
- Qualifying isn’t actually your roadblock, you might just need a bridge loan.
If a Buy Before You Sell program isn’t the right answer for your situation, we’ll tell you in the consult and walk you through what is.
Next step
If you’re carrying a current mortgage and shopping for the next home in Phoenix, Scottsdale, Mesa, Tempe, Chandler, Gilbert, Glendale, or Tucson, and you’ve been told you can’t qualify, this is the conversation to have. Start your application with us so we can pre-approve you and model the backup-contract tier in the same file.
Related reading:
- Bridge Loans Explained, full guide
- How to qualify for two mortgages at once in Arizona
- Backup Contract service page
Frequently asked questions
What is the $2,500 guaranteed backup contract?
It's a guaranteed backup offer on your current home for a $2,500 fee, so you can make a strong, non-contingent offer on your next home knowing you have a buyer in your back pocket if your home doesn't sell on the open market.
How is this different from a home-sale contingency?
A sale contingency makes your purchase depend on your home selling first, which sellers often reject. The backup contract removes that dependency so you can write a clean, non-contingent offer.
Will the backup contract price be below market?
No. Your home stays on the open market for true market value, and the backup is a floor that only triggers if it doesn't sell within the window.
How much does the backup contract cost?
The program starts at $2,500. We walk every fee before you commit, and we don't quote rates here.