Affordable housing through fractional ownership

The dream of homeownership, long considered a cornerstone of financial security and wealth building, is becoming increasingly unattainable for many Americans. Over the past decade, the cost of purchasing a home has risen sharply, while wage growth has stagnated. As a result, the barriers to entry for first-time homebuyers have grown substantially. Lack of affordability is compounded by high mortgage rates, increasing student debt, and a more competitive marketplace with all-cash buyers.

The problem is more acute for minorities, as Black and Hispanic homeownership rates remain 25%+ lower than those of White households. Despite the mounting obstacles, the advantages of homeownership remain undeniable. It continues to offer a reliable path to wealth accumulation through property appreciation and equity building, while fostering longterm financial security. Additionally, homeownership strengthens communities by promoting neighborhood stability, local economic growth, and even civic engagement. In some studies, homeownership has also been associated with better health and educational outcomes. That said, traditional financing options are poorly equipped to enable homeownership—and the benefits that come with it—in today’s market. Mortgages, the most common tool, often have rigid underwriting criteria and require large down payments, excluding many aspiring buyers.

Government-backed programs offer low-down payment options but often fail in competitive urban and suburban markets due to income and price caps that make them unviable. Moreover, both traditional mortgages and government-backed programs burden buyers with significant debt, concentrating their wealth in a single, leveraged asset and leaving them financially vulnerable. Rent-to-own arrangements, marketed as alternatives, are often even more expensive and predatory, with high costs and structures that leave many further from homeownership rather than closer to it.

To address the need for new financing options, Ownify has launched fractional ownership as an innovative financing path for missing middle homebuyers. By leveraging financial innovation and technology, Ownify enables buyers to start building wealth from day one with just 2% down and no debt, creating a more sustainable and accessible path to homeownership.

Ownify’s fractional ownership program brings together first-time homebuyers and institutional investors to co-invest in single-family homes. This innovative co-ownership structure allows buyers to enter the housing market with just 2% down, while investors provide the remaining equity to fund the purchase. Together, both parties share in the benefits of property appreciation and long-term equity building.

Ownify’s technology platform streamlines every step of this process, removing traditional barriers and creating a seamless user experience for buyers, agents, and investors alike:

• Fast, Inclusive Qualification: Ownify’s cash-flow based underwriting system enables buyers – including those with nontraditional incomes–to qualify for the program within 24 hours. The intuitive application takes just 15 minutes to complete.

• Scalable and Secure Systems: The platform seamlessly and securely integrates fraud detection, identity verification, and income validation to help determine an appropriate home price budget for approved customers, ensuring scalability.

• Transparency and Control: Buyers track their progress and equity growth through an intuitive dashboard, fostering trust and engagement. For real estate agents, Ownify also offers a powerful technological advantage through its agent portal, which streamlines referrals, tracks applications, and provides co-branded marketing materials. This tool enhances scalability and expands reach, making it easier for agents to connect clients with Ownify’s innovative homeownership solutions.

Benefits for Homebuyers Fractional ownership reimagines the homebuying process, offering buyers an affordable and flexible pathway to ownership. Ownify’s model presents several key advantages:

• Debt-free ownership: Buyers start building wealth immediately, benefiting from property appreciation, without needing to take on any debt. This model reduces the homebuyer’s financial stress, the risk of foreclosure during economic downturns, and the over-concentration of their net worth in a single asset.

• Low upfront costs: Buyers can secure a home and start building wealth with just 2% down, significantly lowering the barriers to entry. Ownify saves buyers an average of $29K in upfront costs compared to a traditional mortgage.

• Ongoing affordability & no surprises: Monthly payments are fixed over the duration of the program and are more affordable than a mortgage, saving homebuyers ~$392 per month on average. Ownify covers maintenance costs, which provides peace of mind and financial predictability for buyers who may otherwise struggle with unexpected expenses.

• Higher win rates with all-cash offers: Buyers enter the market as cash-equivalent purchasers, making them more competitive in bidding wars. Ownify offers have an 85% win rate in tight markets.

• Support for non-traditional borrowers: Ownify’s model expands access to homeownership for gig economy workers, small business owners, and other non-W2 employees, groups often excluded by rigid mortgage underwriting criteria.

This innovative approach not only makes homeownership more attainable but also helps address long-standing inequities in housing. With over 50% of Ownify’s customers identifying as Black, Latine, or first-generation immigrants, the model is driving meaningful progress in expanding access to historically underserved groups.

• $29k down payment savings

• $392 / mo in lowered housing costs

• equity accumulation

• 50%+ historically underserved groups