Jan 11, 2024
In recent years, the United States has been grappling with a home affordability crisis, leaving millions of households struggling to make their dream of homeownership a reality. Steadworth has stepped up to address this challenge through its innovative Home Wealth Share Program.
Steadworth is making homeownership more accessible and affordable, particularly for the backbone of middle-class America.
Understanding the Crisis
The housing affordability crisis is affecting over 7 million households, with soaring home prices, rising interest rates, and limited affordable mortgage options creating significant barriers. The traditional 20% down payment requirement has become a major obstacle for creditworthy families, preventing them from entering the housing market and building long-term wealth.
Steadworth aims to break down these barriers and make the American Dream of homeownership achievable for a larger segment of the population. Steadworth is focused on providing an innovative supplemental financing solution that increases access to homeownership without the burden of large down payments or private mortgage insurance.
The Middle-Class Struggle
The heart of Steadworth's mission lies in supporting the middle class – young families looking to upsize, single-income households struggling with expenses, and middle-class workers seeking to move to better neighborhoods. These are the individuals who form the backbone of our communities, and Steadworth believes that expanding access to homeownership for them is crucial for overall community health.
Steadworth's Home Wealth Share Program
Steadworth's solution comes in the form of the Home Wealth Share Program. This program provides creditworthy buyers with stable incomes additional down payment funds, making it possible for them to contribute a 20% down payment toward their home purchase. The program targets individuals who may be overqualified for traditional assistance programs, lack the net worth for a traditional down payment, or want to buy a larger home without liquidating savings.
How It Works
Under the Home Wealth Share Program, Steadworth invests either 10% or 15% of the home purchase price while homebuyers provide the remaining 5% or 10% enabling the homebuyer to reach the required 20% down payment. The program offers flexible contract terms of 5 or 10 years, allowing homebuyers to choose the plan that best fits their needs.
Sharing in Future Appreciation
In return for its contribution, Steadworth shares in a portion of the home's future appreciation based on the chosen plan. This unique approach ensures that Steadworth aligns its success with the success of the homebuyer, fostering a mutually beneficial partnership.
Steadworth's Home Wealth Share Program is not about making homeownership accessible to those who fundamentally can't afford it. Instead, it addresses the changing economic landscape and helps creditworthy individuals with stable incomes overcome the obstacles preventing them from saving for traditional down payments. By doing so, Steadworth is creating "affordability in housing" for the middle class, allowing them to maintain and grow their financial stability through homeownership. It's a step towards a more equitable and sustainable housing market, aligning with Fannie Mae and Freddie Mac's commitment to affordability in homeownership.
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