HOME BUYING INCREASINGLY CHALLENGING
Considered these trends. Home prices will likely continue to be pushed higher, making homes less affordable for the average-income consumer. Increasing home prices mean we also need to save more money for the down payment. It is not difficult to understand that home buying may become a distant reality for many. But thanks to new equity shared financing, determined individuals and families who understand the importance of home ownership from a financial and emotional perspective have options that can help them get into their ideal home.
Equity sharing, where EquiFi co-invests with you, is a quite attractive alternative. Our equity along with your down payment can dramatically reduce the loan you need to finance your home. That means lower monthly payments, because our co-investment is equity. With our Equity Funding Instrument (EFI) you can eliminate costly mortgage insurance that comes with not having the full down payment. We can all agree there is a big difference between continuing to rent without having any return on your cash out-flow and owning a home that will become the pillar of your wealth creation.
Some may argue that an equity sharing product could be used to obtain a bigger home or a home that is out of the consumer’s reach. Yes, we thought about that too and asked ourselves how we could prevent home buyers from getting a property that is not right for them and that would eventually harm them, as a result. The answer in restricting the amount of co-investment that can be funded, based on level of indebtedness, as well as several other parameters that deeply evaluate the financial situation of each applicant and the area where they look to live in. Our equity sharing product is not designed to help you buy that big mansion. It is designed to allow families to live in a more suitable and ideal home, based on the specifics of their situation.