If the buyers do not have sufficient home equity or liquid investments to qualify on their own, parental guarantees can be used to qualify, if the parents have sufficient home equity.
The aim of offering deposit bonds through this parental guarantee process is to obtain the assurance that the guarantor will pay on behalf of the buyer if the buyer defaults in paying the full property purchase price including the deposit amount and all closing costs at closing.
Parents home equity must exceed 1.5x the desired Deposit Rocket Guarantee amount.
Please note that the buyers must be the primary applicants as referred on the Deposit Rocket Guarantee and Purchase and ultimate Sale Agreement. Parent guarantees will sign an indemnity, however, their names will not be listed on the Deposit Rocket Guarantee.