Rising interest rates, rising home prices, lack of inventory and other factors are significant barriers to homeownership, and will be for many years to come.
As a result, homeownership has become unaffordable for a significant number of credit-worthy families that have the net income, but not the net worth (a.k.a. down payment) needed to get into a home with an affordable monthly mortgage payment (the driving factor of almost all home purchases; homeowner fear being “house-poor” every month).
Highland Estates and Steadworth will offer prospective purchaser (i.e. credit-worthy buyers with stable incomes that meet certain underwriting criteria) a unique financing program. Steadworth, through its Home Wealth Share Program, will provide eligible homebuyers with 10%-15% of the purchase price of a home as an additional down payment for a home (the homebuyer must contribute 5%-10%).
Steadworth Versus Other Low Down Payment Options
Because the homebuyer now has a 20% down payment (5%-10% of their own money and 10%-15% of 3rd party investor money), they have a lower affordable mortgage payment and no private mortgage insurance, and they save quite a bit of money every month. In return for the investment in a homebuyer's required down payment, Steadworth will share in a portion of the future appreciation on the home. Steadworth’s interests are secured through a second lien against the property; but Steadworth is completely passive and will have “no voice” and cannot interfere in homeowner’s use and enjoyment of the property.
Interested in learning more about how Steadworth can help you purchase a home in Highland Estates?