Trends poised to disrupt the real estate landscape

Companies like Point, Cityfunds (a sister company to Nada), Hometap and more are pushing the home equity sharing concept into the national conversation.

These groups have focused on current homeowners with equity, but several are working on pilot programs to assist with purchase transactions.

Imagine a buyer has 10 percent to put down, the HEI company puts 10 percent down (no additional monthly payments), and the buyer secures the additional 80 percent of funds with a conventional loan. This new conventional loan has no PMI, which keeps payments lower with better terms.

This model helps the homeowner qualify, the investor diversifies, and the lender has less risk to take on. This program is on the horizon, and it’s only a matter of time before we see this making a positive impact on the purchase business we see.

This article originally appeared on inman. Read the article here.