Steadworth's Home Wealth Share program works in conjunction with a traditional mortgage loan to finance your home purchase. While Steadworth provides a portion of the down payment, you will still need to secure a mortgage from a qualified lender.
Current Lender Landscape
Currently, Steadworth's program is primarily available through portfolio lenders. Portfolio lenders are financial institutions that hold onto the loans they originate rather than selling them on the secondary market. This allows them more flexibility in their underwriting guidelines and the ability to offer loans to borrowers who may not meet the strict criteria of conventional loans.
Why Portfolio Lenders?
Steadworth's innovative Home Wealth Share program is relatively new, and it takes time for larger institutions and government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac to adopt and approve new financing models. Portfolio lenders are often more open to working with innovative programs like Steadworth's, providing homebuyers with access to financing options that may not be available through traditional lenders.
Benefits of Portfolio Lenders
Flexibility: Portfolio lenders have more flexibility in their underwriting guidelines, which can be beneficial for borrowers who may not meet the strict criteria of conventional loans.
Personalized Service: Portfolio lenders often provide a more personalized level of service, working closely with borrowers to understand their individual needs and find the best loan options.
Faster Approvals: Portfolio lenders may have a faster approval process compared to larger institutions, which can be advantageous in a competitive housing market.
Future Expansion
Steadworth is actively working towards expanding its lender network to include more traditional lenders and GSEs. We anticipate that more lenders will adopt and offer financing options for homebuyers participating in the Home Wealth Share program.
Understanding the current lender landscape and the benefits of working with portfolio lenders can help you navigate the financing process and secure the mortgage you need to purchase your dream home with Steadworth.