Flyhomes How It Works

1) Clients are pre-underwritten, meaning Flyhomes does a deep dive into their finances before they start looking for a home to ensure they are eligible for a loan and to let them know what their budget is.

2) Initially clients get set up with a short-term loan to make a competitive cash offer. This loan is payable in as few as 10 days. One source states that this short-term loan carries an annual interest rate of about 6% (source).

3) Once the client’s short-term loan closes, they can move into their new home.

4) After the client has moved out of their old home, Flyhomes gets the old vacant home show-worthy to help the client maximize their profits from the sale. Once sold, Flyhomes' in-house mortgage team works to refinance the client’s short-term loan into a long-term loan and applies the proceeds from the home sale to the down payment. Alternatively, Flyhomes will spend up to 3 months helping clients find a lender of their choice. During this period, clients will pay costs associated with holding a new home, which is a fixed daily rate that typically ranges from $100-$200 per day.

• Their website used to disclose the Loan Origination Fee which ranged from 0.75% - to 3.00% of the loan amount. This article still states the fee but may be outdated percentages now.

Unaligned purchase and sale

There’s more risk and uncertainty when a client obtains more financing that is not theirs to buy their new home. That’s what Flyhomes BBYS does. They set a client up with a short-term loan (bridge loan) to buy their new home, then refinance it with a long-term loan. In a rising rate environment, you could end up with a higher rate, costing you thousands over the life of the loan. 

• Since Flyhomes does not purchase the client’s old home, clients are left paying their existing mortgage and a daily rental fee on their new home until their old home is sold.
• When pairing with Flyhomes Cash Offer, clients are vulnerable to higher refinance rates and loan origination fees due to its bridge loan mechanics.

HomeLight Trade-In:

• Buy a client’s old home when they are ready, giving clients proceeds to put into their new home purchase. 

• You don't have to do a short-term (bridge) loan. You lock in your desired rate when you get into a contract in your replacement home.

• You work with your agent to prep, stage, and list your old home to maximize the home sale, not a Flyhomes agent that may not have years of experience in selling homes for top dollar.

• You get a second check once your home sells on the open market. This unlocks real equity for a client’s new home purchase and allows them to move into their new home without worrying about their old home and with no other financing but their new mortgage. Clients avoid paying double mortgages with Trade-In. 

• Favor their in-house agents. Clients are incentivized to use a Flyhomes brokerage agent. If they use an agent from a different brokerage they are charged a convenience fee. HomeLight has partnered with an exclusive group of top-performing agents. FlyHomes employs in-house agents.
  There is value in working with an agent that you know AND NOT one that doesn't know you.