Improve the purchasing power of your home and avoid costly PMI payments
– Sahil Gupta, founder
SAN FRANCISCO, California, United States, December 15, 2021 /EINPresswire.com/ – Today’s extremely competitive real estate market has created huge obstacles for first-time home buyers. According to the National Association of Realtors, in the spring of 2021, more than half of home buyers put at least 20% less on their new home. To help homebuyers buy homes and start building real estate, Noah, a modern real estate finance company, is announcing today that it is launching Down Payment Assistance.
Since 2017, Noah has been helping homeowners access home equity and continue to build real estate wealth with its first product, Home Equity Access. Noah offers a unique financing model: He invests in homes, alongside the owner, providing upfront cash in return for a portion of the home’s future appreciation. Noah has invested in over $ 450 million in homes through his platform and is now applying the shared equity model to help homebuyers.
The record appreciation of the housing market has created an even greater need. A recent study by Harvard’s Joint Center for Housing Studies found that down payment assistance programs like Noah’s could enable about 6.6 million households to become homeowners with assistance between $ 25,000 and $ 100,000. To maximize the impact of the business, Noah is offering up to 75% of the funds for a down payment at the time of purchase – up to $ 500,000 for the purchase of a home.
How the down payment assistance program (PAD) works
Noah provides up-front financing to help homebuyers meet or exceed the 20% threshold in exchange for a share of the home’s future appreciation. Since the PAD is an investment, not a loan, homebuyers are not required to make monthly payments to Noah. Unlike existing down payment assistance programs administered by government or local agencies, there are no income or purchase price limits. Noah aims to serve a broad audience with funding for homes ranging from $ 175,000 to $ 3,500,000.
Advantages of assistance with the payment of a deposit
1. Make a stronger offer. Buyers with larger down payments are often seen as a lower risk for sellers.
2. Access lower mortgage rates and lower monthly payments. Reaching the 20% down payment threshold often allows the buyer to benefit from lower mortgage rates, which can save thousands of dollars each year.
3. Avoid PMI requirements. Private mortgage insurance is an expensive requirement for first-time home buyers who buy a home with less than 20% down payment.
4. Improve purchasing power. A larger down payment means buyers can afford a more expensive home with the same monthly payments.
Along with the down payment offering, Noah connects homebuyers with participating mortgage lenders to help make their dream home a reality. “By partnering with proptech lenders, agents and platforms, we have the potential to make homeownership more accessible and affordable for millions of Americans,” said Sahil Gupta, founder of the company.
Applying for down payment assistance is designed to be easy. If you are a potential buyer interested in Noah’s down payment assistance program, learn more at noah.co.
Noah is a modern real estate finance company dedicated to helping people thrive through homeownership. Launched in 2017, Noah’s first product was Home Equity Access, designed to help existing homeowners leverage their home equity without taking on more debt. The company applied its innovative Home Equity Sharing model to help homebuyers become homeowners through Down Payment Assistance. Noah’s investors include Union Square Ventures, Breega Capital, Techstars, and others. For more information visit noah.co.