Balance Homes offers homeowners immediate cash by entering into a silent co-ownership agreement to pay off existing mortgages and high-interest debt. This structure allows homeowners to eliminate monthly debt payments and potentially lower overall expenses while remaining in their primary residence. Homeowners retain flexibility to repurchase the equity share later or share in future appreciation upon selling the property.
Funding
$25M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many homeowners struggle with high mortgage debt, often compounded by other high-interest debts, leading to financial instability and the risk of foreclosure, especially when unexpected life events occur. Traditional refinancing options are often unavailable to those with low credit scores or who have missed mortgage payments. This leaves homeowners with limited options to access their home equity without incurring further debt.
Solution
Balance Homes offers a co-ownership program that provides homeowners with a flexible alternative to traditional mortgages and home equity loans. Balance Homes pays off the homeowner's existing mortgage and other high-interest debts, such as credit card debt, in exchange for a share of the home's equity. This arrangement reduces the homeowner's monthly payments and provides access to emergency reserves, offering financial flexibility and stability. Homeowners can repurchase Balance's share of the home at any time or sell the home and share the proceeds, allowing them to regain full ownership or move forward with their lives.
Target Audience
Balance Homes targets homeowners struggling with mortgage debt and other high-interest debts, particularly those with low credit scores or who have experienced unexpected financial setbacks, and are seeking a flexible and affordable alternative to traditional lending.
Features
- Co-ownership model where Balance Homes invests in the home in exchange for a portion of the equity.
- Pays off existing mortgage and up to $50,000 of other high-interest debts.
- No minimum credit score required for eligibility.
- Provides access to "Emergency Reserves" for payment relief or unexpected expenses.
- Flexible payback options with no minimum term; homeowners can repurchase Balance's share or sell the home.
- Monthly payments include occupancy payment and share of home expenses like insurance and taxes.
- Homeowners retain control and can sell or refinance at any time.
- A one-time shared ownership entry fee of 3% of the home value is charged.