HomePace will provide you up-front capital in exchange for a share of your home’s future change in value. You use the money, without the burden of interest payments. We get paid from the proceeds when your home sells.
How it works for homeowners
See how HomePace and a homeowner share the change in value* of a home in two scenarios
*HomePace and the homeowner’s share percentages assume HomePace invests in 10% of the starting value of the home.
HomePace shares losses up to its initial investment. The above characteristics are presented solely for illustrative purposes, and do not represent the actual characteristics of any investment in an actual client account. There is no guarantee that any client’s account will have the same characteristics as those set forth above. Contract terms and outcomes may vary based on your personal financial situation, interest rates, market performance, and other factors.
How do I compare HomePace to a HELOC or Reverse Mortgage?
Comparing debt and equity products can be a challenge. Your personal goals and financial situation will determine which option is best for you. If you want to speak with someone to discuss your options, contact us at email@example.com.
Debt options like a HELOC or Reverse mortgage may be an option if:
- You can easily afford the extra principal and interest payments.
- You meet all traditional lending standards.
- You treat your primary home as an investment and believe that your home will appreciate more than market average.
You commit yourself to payments and substantial interest costs out of pocket, but you will keep 100% of the gains or losses on your home.
HomePace may be an ideal option if:
- You do not want to increase your debt obligations each month.
- You seek to lower investment risk in other investments, such as retirement and taxable savings (moving from equities into fixed income, for example)
- You have already seen appreciation in your home, and you wish to lock in some of those gains without selling your home.
- You would be very adversely impacted if your home lost value, and you wish to protect yourself from taking on 100% of that risk.
You share a percentage of the gains or losses of your home (when you choose to sell), don’t have to pay out of pocket to access funds to achieve your financial goals.
What happens if I want to live in my home for more than 15 years?
HomePace’s contracts extend for up to 15 years, and you can sell your home at any time. If you do not wish to sell your home at the end of your contract, you have the option to buy out the contract. You would pay HomePace for our share of the home, based on the home’s current market value at that time.
In some cases, we may be able to re-engage in a second contract on your home, provided the home and the local real estate market continues to meet our investment criteria and the home has been well-maintained. We assess homes on a case-by-case basis. If you would like to consider this option, please contact us to discuss.
What if my home has lost value when I go to sell?
As a co-investor with you in your home, HomePace will share in a portion of the losses in the home alongside you, as outlined in the contract.
You have the right to sell your home when you decide to, regardless of its change in value. We recognize that your primary residence is not just a financial investment for you – your needs from your home may change, sometimes unexpectedly, and we understand that needing to move doesn’t always coincide with rising prices.
In the unlikely event that HomePace’s share of the losses at the time of sale exceed the value of our initial investment (the upfront payment we give you), we will waive our right to our share of the home. This means you keep 100% of the proceeds of the sale of the home when it sells. If that happens, you have no obligation to repay us for the upfront funds we provided to you. Those funds are not a loan and are only repaid if the home sells with enough value to share between HomePace and you.
How is HomePace’s share calculated?
Factors like the size of the upfront payment you are seeking from HomePace, your credit score, the amount of equity you have in your home, and the real estate market in your area may all determine how we calculate share ownership. The split is set before you sign the HomePace contract and does not change.
We do offer credits to homeowners if they make improvements to the home that positively impact the value of the home. Read our FAQ “What if I use the funds to remodel my home” for more information.
Contact our team at firstname.lastname@example.org to learn more about pricing and contract terms.