Frequently Asked Questions

PROGRAM

What is PayHome™?

PayHome™ is a shared equity investment whereby cash is provided for five years in return for its repayment and a participation in the price appreciation of a home, if any, based on the Equity Buyout Ratio.

Do I share in the ownership

No, you become or remain sole owner of the property.

Why should I consider PayHome?

With PayHome, you can save on a down payment, reduce mortgage payments, buy a more desirable home, and obtain a higher rate of return on your home investment.

How do I apply for PayHome?

You can go to Apply for the requirements and application. The cash requested may not exceed 25% of the home appraisal by the lender's independent certified appraiser and by our appraiser. Home buyers must make and hold a minimum 10% down payment.

How long does it take to process my application?

Your application will be processed within five business days.

When do I obtain the funds?

The cash requested, less the 5% origination fee, will be paid to home buyers through escrow at the closing on the home but only after we have received all the required documents.

How can I maximize the rates of return on my home investment?

You maximize the rates of return on your home investment by minimizing your down payment.

Why do I obtain higher rates of return on my home investment with PayHome?

It is because of the higher leverage obtained from a smaller down payment, meaning that a small increase in home price will result relatively in a larger increase in home equity.

What is the Equity Buyout Ratio?

The Equity Buyout Ratio is a multiple factor of the percent of the home purchase price that we invested to determine our share of the home price appreciation and your payment obligation - see Savings. The Equity Buyout Ratios in the following years are:

Year:	1	2	3	4	5	Thereafter (No Calls)
Ratio:	3.5	3.5	3.0	3.0	3.0	3.0

When can I pay off PayHome?

You can do so at any time. However, there is a prepayment penalty within the first two years of home ownership - see fees below.

Can I pay off part of PayHome?

Yes, at any time. However, you will have to pay in such case our expenses for evaluating the home and resolving any difference in valuations.

When is PayHome called?

PayHome can be called after the fifth year of our investment in your home.

How is the value of my home determined upon the payoff of PayHome?

You may obtain for free a comparative market analysis (CMA) from a realtor. Secondly, you may obtain an appraisal from a certified appraiser of your choice.

What if there is a discrepancy between valuations?

We will accept your valuation unless there is an unreasonable discrepancy. If we cannot agree on an appraisal value, our respective appraisers appoint a third independent and certified appraiser to arrive at a value. Costs of the appraisals are deducted from the final appraised value in determining your payment obligation.

Can I obtain a PayHome as a home owner?

PayHome is available to home owners who are gainfully employed and whose mortgage payments are fixed and current. If you qualify for a PayHome, you must pay for the certified appraisal of your home.

FEES

Are there any hidden fees?

No. The only fee is a 5% origination fee.

Is there a prepayment penalty?

If PayHome is paid off in part or in full before the third year of home ownership, the prepayment penalty is an increase in the Equity Buyout Ratio from 3.0 to 3.5. Otherwise, there are no prepayment penalties.

Are there any penalty fees?

The Equity Buyout Ratio increases half a point (0.5) per infraction or breach of contract. The Ratio is capped when our share of the net home price appreciation reaches 90%.

HOMES

Which homes qualify for PayHome?

Homes must be existing single-family, detached, owner-occupied, over $400,000, and located in a prime-residential market.

What is a prime-residential market?

A prime-residential market is an area where home prices offer the potential for above-average annual appreciations based on the underlying economy, housing supply, home price trend, and comparative market analysis.

How do I know if the home I wish to buy, or that I own, is located in a prime-residential market?

Consult your real estate agent about our investment criteria - see Apply. We must also verify that the price of the house meets the appreciation potential through our research once you have submitted the application.

Can I sell my home at any time?

Yes, you can sell your home at any time. However, there is a prepayment penalty if you sell the home within the first two years of home ownership - see fees above.

Can I rent my home?

You may rent your home only under extenuating circumstances because tenants may cause damages to the home, which can depreciate its value.

Are home improvement costs reimbursed?

Home improvements are difficult to evaluate in determining their added value over time with depreciation. However, an improvement must unequivocally enhance future market value to qualify for reimbursement. We will therefore decide on a case-by-case basis on the amount, if any, of the improvement costs we will reimburse.

What if my home decreases in value?

You do not have to repay the funds that we provided you if there is no equity in the home after a drop in price.

MORTGAGES

Can I obtain a mortgage on this Website?

Yes, you can go to the Mortgages tab or you may contact us. Our mortgage partners are of course familiar with PayHome.

What are your mortgage partners' rates?

To compare fixed-rate mortgages with those offered by our mortgage partners - see Mortgages.

Can I seek another loan or note against the property after obtaining a PayHome?

Unless you wish to pay off PayHome, you cannot secure another loan or note against your property without our approval because it will encumber the established equity interests in the home.

TAXES

Are there any tax issues that I should be concerned about?

Even though PayHome is an investment, we suggest that you consult your tax advisor for any possible issues in your particular situation.