A Cash Offer Loan is a short-term investment that gives homebuyers a better chance of purchasing their next home by enabling them to effectively make an all-cash offer to the seller.

This is how it works:  

  1. A homebuyer identifies a home they would like to purchase.
  2. The homebuyer engages a service provider or agent to purchase the new home on behalf of the homebuyer.
  3. A bridge loan is made to the service provider or agent, collateralized by the new home.
  4. The homebuyer puts down an earnest money deposit and moves into the new home as a tenant.
  5. When the homebuyer sells their current home or finalizes a mortgage for the new home, the service provider or agent sells the new home to the homebuyer and pays off the loan.

Cash Offer Loan Card


This service creates value for homebuyers by making their offers more attractive to sellers, and creates efficiency in the buying and selling of homes. This service provides other benefits:

  • It alleviates the need for the homebuyer to hold two mortgages simultaneously.
  • It removes the requirement that many homebuyers face making the purchase of a new home contingent on selling their current home.
  • It allows a homebuyer to move into their new home faster as the buyer does not have to wait for their mortgage to be processed and finalized.

Cash Offer Loans act as a bridge from the time of the effective purchase of the new home, to the time a new mortgage is funded and/or the old home is sold. 

What advantages does this type of loan have for investors?
Cash Offer Loans are bridge loans that help homebuyers acquire a new home while selling their current home or while waiting to receive traditional mortgage financing. This product serves a growing need in the market and makes the home buying and selling process easier.

  1. These are short term loans – typically around 3-4 months.
  2. The service provider has “skin in the game” (by purchasing the home).
  3. The homebuyer has “skin in the game” (by putting down an earnest money deposit or other financial consideration).
  4. The homebuyer is typically pre-approved for a mortgage to purchase the new home, and once it is processed, the Cash Offer Loan will be paid off in its entirety.
  5. The homebuyer is highly motivated to pay off the service provider (and the PeerStreet funded loan) and convert from a tenant into a homeowner.

How does this compare with other loans on PeerStreet?

Cash Offer Loans offer investors a new option for short term liquidity. Cash Offer Loans, similar to traditional PeerStreet bridge loans, can be paid off prior to maturity and are dependent on borrower monthly payments as opposed to 30-Day Notes where PeerStreet bears the obligation of repaying principal and interest. The borrower on the loans is the Cash Offer service provider. These loans provide the financing to enable the Cash Offer program for their homeowners.

What is the loan term?
The term for the listing contract with the service provider is usually about 3 to 4 months, but this loan can be paid off earlier (with no penalty) if the existing home is sold, or the mortgage for the new home is processed more quickly than the full 3 to 4-month term.

Can the loan term be extended?
Yes, the term can be extended one month at a time, for a total of 2 additional months. The rate stays the same through this extension period and the borrower pays an extension fee.

Can the homebuyer move into the new home immediately?
Yes, they usually move into the new home within a week or so.

Is the homebuyer represented by the service provider in the sale of their current home?
Typically, yes. The service provider or agent generally represents the homebuyer in both the purchase of the new home and also represents the homebuyer in the sale of their current home.

DISCLAIMER: The information provided in this site, including, without limitation, the Cash Offer Loan image, should not be construed as advice on any subject matter whatsoever. You should not act or refrain from acting on the basis of any content included in this site without seeking legal or other professional advice. This information is provided strictly for informational purposes only and is subject to change from time to time without notice to you.