Turn your loan into a cash offer in Colorado

So I came across this Denver based mortgage company called Accept. If you can be qualified for a home loan, this lender will put in a cash offer on your behalf and then sell you the loan for it. You get to offer cash on a house, while using a loan. Pretty cool, huh?

I made a quick video about this company also. Click the picture to watch.

I found the original article on Fox 31 Denver News. From there I went to Accept’s website. I talked to a rep at Accept on the phone, and she confirmed that yes this is a legitimate program, where the company does an analysis on the property the buyer is writing an offer on.

If the purchase/offer price the buyer wants to make matches what their valuation of the property is, they will make a cash equivalent offer on your behalf.

So what’s the catch?

None, as far as I can see. From what it sounds like, the interest rates and lender rates are competitive with other lenders. This mortgage company is just wanting to offer a program that will help qualified buyers get an edge over their competitors.

This looks like a great program! So why isn’t everyone using it?

Well they are, actually. Anyone who knows about the program and likes the idea is currently on a waiting list. The company can only take on so much business, so currently there is a waiting list for getting a loan from them. If you go on their site, you can sign up for that waiting list too. The sooner, the better!

I talked to Sha-Kayla, who is a transaction manager at Accept, and she was happy to give me details and direct any buyers I had to their program. With Accept, you get to use the real estate agent of your choice, and your agent will still get paid. I don't think you can use your same lender if you already have one though. This looks to be a program offered exclusively by Accept.

So far, this program is only offered in Colorado, though Accept plans to branch out in the near future. Sounds like Washington and California may be next!

So if you, or anyone you know is thinking of buying a house, or having trouble getting their offers accepted, I recommend checking this program out through Accept Inc. I am not affiliated with them in any way, and I don’t make money off promoting them. I do see this as a way to have an edge as a lender, and if one mortgage company can do this, why can’t others?

Perhaps this is something we may see more of in the future? Does your bank or mortgage broker offer such a program? If you are or know a lender/mortgage broker, what are your/their thoughts about this cash program?
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In other news, is a housing market crash on the way?
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I don't think so. Back in 2008 you had a reason for the housing market crash, which was the mortgage industry over lending to people who couldn't actually afford those loans. The difference between then and now is that lenders are a lot more scrupulous in who they select. Now the problem is simply low inventory.

​In the past decade, only 5 million new construction homes were built, compared to previous two decades which were over 20 million homes each. This shortage of homes is in large part due to the mortgage crash of 2008 to 2012. When homes were dropping in value, there was a lot less incentive for builders to build new homes. Now that the economy has caught up, the issue now is the low inventory from the past 10 years.

So that long-term repercussion of what people were doing back in our recession years is catching up to us now. With new construction slacking due to low demand the past decade, once our economy finally got back on track, new construction lagged behind. It’s no one’s fault really, just the way it happened, but now here we are.

So if you pay attention to a few things, you can start to see the signs of what’s coming, and if you were looking at the signs back in 2006, you probably would have seen the mortgage industry handing out loans like free cookies at King Soopers (do they still do that?). People getting crazy loans that they shouldn’t have been given, and then once their rates went up, or the terms of their loans changed, they just couldn’t make those payments.

Now you’re starting to see the opposite, where it’s harder to get a loan, and I’ve got people asking me why a lender can’t qualify them for a $1,400 mortgage, while they’re paying the same amount in rent.

What I’m trying to say is, I’m watching the signs, I’m paying attention to the market and what might cause a crash or a downward turn in our future, but I’m not seeing it. Lots of people say it has to happen because it happens in 5-7 year cycles, and yeah sure, statistically that’s true. But you need a reason for home prices to go down, and what’s that reason?

I think the lack of new construction over the last 10 years put the housing market in a chokehold. Yeah they’re still building, but it’s not fast enough to cover the deficit of homes available, and how is the price of something ever going to go down if there’s less of it?

We have less than a half month’s supply of homes for sale in Colorado Springs as of May 2021. For reference, a balanced real estate market generally has 4-6 months worth of inventory.

Homes generally sell in 4 days or less in Colorado Springs. This is the nuttiest market anyone has ever seen, and it’s a really hard market for buyers right now. I feel for everyone who’s several offers in with no luck getting a house. It’s a brutal market right now, and only the buyers with the highest offers/cash/some other incentives are getting these homes.

I just don’t see how these home values are going to go down anytime soon. Write a comment down below, change my mind, I’m all for some reasons why we’re headed for a crash. Right now, for me, I don’t see that evidence anywhere.