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Buy Your Dream Home Now & Save

PayHome provides cash to home buyers so they can capitalize and leverage on the future equity in their homes. It allows existing home owners to raise cash by unlocking the equity in their homes. PayHome consists of an investment in a home in addition to a share of the home price appreciation. The investment holds first equity position and cannot be encumbered by any debt obligation other than a single fixed-rate mortgage.

In return, we have the option after five years to call our investment and receive a percent of the home appreciation, if any. PayHome is a shared equity investment and does not have to be paid back if there is no equity in the home resulting from a decrease in value. In other words, there is no risk and PayHome can be paid off at any time.

Our home investment is the amount of cash requested. We will deduct from the requested cash an origination fee of 5%. For example, on a $500,000 house with a 10% Payhome, you can save $47,500 upon purchase ($50,000 less 5% or $2,500) to use for a car or any other purpose. Moreover, you will obtain a higher return on your home investment because of the increased leverage on the smaller down payment.

Home Price:	$500,000	$500,000
Down Payment:	$100,000	$50,000
PayHome:	--	$50,000
Same Mortgage:	$400,000	$400,000
Purchase Savings:	--	$47,500

With PayHome you are able to afford a home that meets your aspirations. For example, assume you have $100,000 in savings and qualify for a $400,000 mortgage to purchase a $500,000 house, as above. You can now buy a bigger home for $600,000 and still save $14,000 after the origination fee ($20,000 less $6,000) for furniture, etc.

Home Price:	$500,000	$600,000
Down Payment:	$100,000	$80,000
PayHome:	--	$120,000
Same Mortgage:	$400,000	$400,000
Purchase Savings:	--	$14,000

Upon payoff, the home owner repays the investment in addition to a percentage of the net price appreciation. The percentage is the percent of the home purchase price that was invested multiplied by an Equity Buyout Ratio of 3.0. If the investment was 10% of the purchase price, the owner repays the investment in addition to 10% x 3.0, or 30% of the price appreciation, if any.

For example, if the investment was 10% on a $500,000 house that appreciates to $600,000, you would repay the $50,000 investment plus 30% of the $100,000 appreciation, or $30,000. Therefore, your capital gain would be $70,000 ($100,000 - $30,000).