Ownify is a fractional homeownership program for first-time homebuyers. Instead of using a mortgage to purchase a home, participants in Ownify (“Ownis”) purchase incremental equity with each monthly payment and grow their ownership stake in their home. Once an Owni has a 10% equity stake, they can qualify for a traditional mortgage. We love this approach because it improves access to home ownership for historically underserved populations. Our friends at Impact Alpha wrote about this innovative model yesterday in this story.
Ownify has a number of benefits compared to a traditional mortgage. First, Ownis only need to make a down payment of 2%, as opposed to the standard 10-20% for a mortgage. Second, since the Owni is purchasing equity, the value of that equity rises and falls with the value of the
home, meaning an Owni will never be underwater (owe more on their mortgage than the home is worth) if their home value decreases. Third, Ownify makes an all-cash offer to the selling homeowner, which greatly increases the likelihood the seller will accept the offer. Fourth, Ownify covers the costs of all repairs, maintenance, property taxes, and insurance for the duration of the 5-year program.
With donor support through our philanthropic investment program, Realize Impact invested $1 million earlier this year in Ownify. We’re about to invest more this month. If you’d like to make an impact investment through our program into this socially beneficial venture, just follow the steps in the link above or contact us.