If you own a home and have trouble making on time payments, are delinquent, or have found it challenging to access cash you may think there's nothing out there that can help you — but that's not necessarily the case.
Home co-investing could be an excellent opportunity to get the funds you need to get caught up and stay in your home, while lowering your monthly payments and building your credit.
Let’s look at what home co-investing is and talk a little more about how it works.
Home co-investing involves an equity investor, such as a company or individual investor, purchasing a certain percentage of equity in your property from you.
You receive cash from your equity, and the equity investor benefits if the value of your property increases through appreciation or real estate market forces. However, your name is still on the deed to your home, and you are still the primary owner, so you don’t have to move or change how you live there.
As a home co-investor, the investor hopes to profit from the equity investment. This is similar to how a company investor may expect that the shares they purchase in a publicly traded company also increase in value. However, unlike a lender or loan the equity investor is not guaranteed a return and you may end up paying them back less.
During the co-investment period homeowners have the option to purchase equity back from the co-investor typically by selling their home or refinancing.
At Balance, we offer a co-investing arrangement with a few differences from the standard agreement.
Balance understands life happens and credit scores can quickly decrease, which is why there's no minimum score to qualify. If you’re in financial trouble due to a life event, like an income disruption, we'll pay off your mortgage and provide you with cash from your equity. You can use the money to consolidate debts and increase your savings — and you won’t have to leave your home, as we’ll merely take out an equity investment in your property as co-owners.
In exchange, you’ll be paying us a monthly fee that includes an occupancy payment and your share of the home’s expenses (taxes, insurance, HOA fees, etc.). Balance has no minimum term and a 7 year maximum term — once your credit and finances have improved, or you're ready, you can buy back Balance's share and exit the co-investment.
Co-investing with Balance is perfect for those facing unexpected financial stress and seeking a way to avoid foreclosure.
Home co-investing has plenty of benefits when you work with Balance. Here are some of the top advantages you can enjoy when you enter co-ownership with Balance Homes.
Balance Homes replaces your existing mortgage with an equity investment, which even gives you the chance to access additional cash. With our approach, you can enjoy financial flexibility — especially if you have income, but are having a tough time qualifying for traditional loans or refinancing due to credit issues or other financial challenges.
With Balance Homes, you make one simplified monthly payment directly to us, and this payment covers your share of occupancy, taxes, and insurance.
As a co-owner, Balance contributes to monthly expenses, too, which can help ease the financial burden on you as a homeowner. By streamlining payment responsibilities, we can help enhance your budget management and financial planning.
Though Balance does hold an interest in your property, you retain ownership and get to stay in your home. As a homeowner, there’s plenty of personal and emotional value associated with your home — and our unique co-investment structure helps make sure that you stay in control of the home you love.
We offer the freedom to repay when you’re ready to refinance into a mortgage or sell the property. There’s no minimum term, allowing homeowners to refinance or sell their home when they're ready.
Our homeownership program is built to help homeowners rebuild their credit, strengthen their financial profiles overall, and generally enhance their financial position. Whether you’re facing foreclosure, high debt utilization, unexpected expenses, or other challenges, our program helps give you the opportunity to improve your credit score and find a path back to financial stability.
As a tailored solution, co-owning with Balance can help you consolidate debt, avoid foreclosure, improve cash flow, and address various other financial needs, providing you with key support during trying times.
Balance has helped many homeowners keep their homes during tough financial times while lowering their monthly payments by up to 30%. By co-investing in your home with Balance, you’ll have the chance to rebuild your credit, save money, and stabilize your financial footing.
In the future, you could refinance into a traditional mortgage to buy us out of our equity or pay us off yourself to have sole ownership of your home.
Contact us today to learn more.
Sources:
Home Equity: What It Is, How It Works, and How You Can Use It | Investopedia
Equity Sharing Lets Homeowners Sell 'a Slice' of Their House. Should They? | Money.com
