A Houston company is offering new way to homeownership, through home-equity.
Homeowner, Enrika Goins, left, and her mother, Pamela Andrews, take their breakfasts to their favorite spots in their new home on July 30, 2022, in Hutto, Texas.So she began searching online for alternate options, typing in"rent-to-own." Rent-to-own programs typically give renters the option to buy the home at the end of a lease, sometimes helping renters put aside money for a downpayment.
Goins filled out the online application, which includes a soft credit check . The very next day, she received a call from a Mirabilis employee explaining the program, and within a week, she was looking for homes with her real estate agent. And there’s plenty of incentive to finding ways to get a cut of rising single-family home prices, he said, calling home-equity sharing “a new type of asset class.”
If prices fall in response to rising mortgage rates, as they have in some places, the family members and their co-owners share any potential losses — but that same dynamic makes it less likely that a family will sell before prices have time to recover.