Knock debuts new buy-before-you-sell bridge loan

Knock, a real estate technology company that helps homeowners buy before they sell, is launching a new loan product. On Tuesday, the company announced the debut of Knock Bridge Loan Plus. 

The new offering provides the same benefits as the company’s original bridge loan product. This includes its guaranteed backup offer program and the same one-time, 2.25% fee through the end of the year while supporting a broader range of loan programs, including U.S. Department of Veterans Affairs (VA) loans, according to Knock.  

The financing option pays off the homeowner’s existing mortgage upfront, eliminating double mortgage payments and allowing buyers to unlock more purchasing power.

According to a company press release, by paying off their current mortgage, homeowners can release the equity they have tied up in their current home while eliminating their monthly mortgage payment as they try to qualify for a mortgage on their new home. 

“The Knock Bridge Loan Plus gives homeowners more financial breathing room, more choice in lenders and a faster path to their next home,” Sean Black, the co-founder and CEO of Knock, said in a statement. “It embodies our mission to put consumers first by removing friction and complexity from the homebuying process while empowering our partners to serve more buyers with less hassle.”

The company said the new offering builds on its existing $100 million bond issuance that unlocked $900 million in new lending capacity. Knock said this additional capital allows it to offer more cash upfront to consumers and support a wider range of loan programs. Knock loan products are currently available in 25 states and Washington, D.C.

Knock announced in June 2024 that its bridge loan product was being integrated into the borrower application process at Baltimore-based NFM Lending.

Knock also announced an increase on its maximum bridge loan amount to $1 million, up from the previous limit of $750,000. It’s designed to expand purchasing power for homebuyers in higher-priced markets like California and Washington.