Steadworth's Home Wealth Share program is a flexible approach to homeownership that helps creditworthy individuals and families achieve their dream of owning a home sooner and with greater affordability.
How it Works
The program is based on a co-investment model, where Steadworth partners with homebuyers by providing a portion of their down payment in exchange for a share of the home's future appreciation for a fixed term. This means that Steadworth invests alongside the homebuyer, contributing either 10% or 15% of the home's purchase price towards the down payment. The homebuyer is responsible for contributing the remaining 5% or 10% to reach the 20% down payment threshold.
By reaching a 20% down payment with Steadworth's assistance, homebuyers can enjoy several significant benefits:
Lower Monthly Payments: Avoiding private mortgage insurance (PMI) and securing a lower purchase first mortgage can lead to substantial monthly savings. The homebuyer enjoys 100% of the monthly savings.
Increased Buying Power: With a larger down payment, homebuyers may qualify for a higher loan amount, allowing them to purchase a more expensive home or a home in a more desirable location.
Immediate Equity Building: Homebuyers start building equity faster in their home from day one through a larger down payment and lower monthly mortgage payments.
Wealth Creation through Appreciation: Homebuyers can benefit from an increase in the value of their home over time, after sharing a predetermined percentage of the appreciation with Steadworth when they sell or refinance their home.
Full Ownership and Control: Homebuyers retain full ownership and control of the property and enjoy all the benefits of homeownership, including the freedom to make changes and renovations to the property as they see fit and retain the increased value from any renovations.
Eligibility Requirements
To qualify for the Home Wealth Share program, homebuyers must meet certain eligibility criteria:
Minimum credit score of 720 for the highest wage earner.
Purchasing a primary residence.
Property type must be a single-family residence, townhome/PUD, or FHA-approved condo project.
No investment or second homes.
Applicants must be either U.S. citizens or permanent resident aliens.
No history of short sales, foreclosures, or deeds in lieu within the past 7 years.
No bankruptcies within the past 7 years.
No federal liens or unresolved disputed debts.
All borrowers must reside in the property.
Satisfactory underwriting of income, assets, and liabilities, as determined by Steadworth.
Contract Terms and Termination Options
Homebuyers can choose between a 5-year or 10-year contract term for their Home Wealth Share Plan. The contract outlines the terms of the agreement, including the percentage of future appreciation that Steadworth will receive. Homebuyers have the flexibility to terminate the agreement at any time (with certain adjustments to the share of appreciation that Steadworth will receive) by selling their home, refinancing their mortgage, or exercising their Owner Repurchase right.
Overall, Steadworth's Home Wealth Share program offers a unique approach to homeownership, providing creditworthy individuals and families with the opportunity to purchase a home sooner, with lower monthly payments, and the potential to build wealth through home appreciation.