We're building homeownership where banks don't go

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We're building homeownership where banks don't go

Hi, I’m John. My co-founder Jada and I are helping people in the Midwest buy houses worth $80k or less through a shared ownership structure that enables residents to accrue protected equity in their homes with each monthly payment - https://www.hurryhome.io/impact-investing-real-estate Nearly 1 in 5 houses across the country are worth $80k or less. In many Tier 2 and Tier 3 cities, this stock makes up 10-30% of the available housing (in South Bend, IN where we live, the median house value is $78k). But these houses are still inaccessible for a lot of working families who want to be home owners - instead, they typically end up renting the same housing and miss out on the primary way Americans build wealth. what’s stopping people from buying these houses? Banks aren’t interested in making mortgages below $80k due to their profit structure. When a bank makes a mortgage, the majority of its revenue comes from the fees it charges to originate, typically a percentage of the total loan value. But since many mortgages are sold to the secondary market (Fannie and Freddie), it costs the bank the same amount to make a $50k loan as it does a $500k loan. If they are servicing the loan for Fannie or Freddie they’ll earn a fraction of the interest, but how much money that equates to still depends on the size of the loan while again having fixed costs. So if it costs a bank at least $800 to make a mortgage, they’ll lose money on every loan they make worth less than $80k - https://www.wsj.com/articles/small-mortgages-are-getting-harder-to-come-by-11557394201 This is the problem we're solving with Hurry Home. We work with individuals looking to make investments for passive cash flow while still making an impact on people’s lives. Investors can buy homes for as little as $25k and earn a predictable return. Excited to share this and would love to know your thoughts and suggestions