At the end of December, home prices in Dallas were an astronomical 20.1% higher than they’d been the previous December, according to CoreLogic. That’s great news if you’re a seller. But what if you’re trying to buy a home?
Maybe you make a decent living, but a reduced market of available homes, and increased competition for those that are available, make you want to throw up your hands and move to a tent (or at least stay where you are).
$750 million commitment
Enter Pathway Homes. The company has committed $750 million to make home ownership more accessible to more people around the U.S. It does so by helping potential buyers identify their ideal home and then purchasing it on their behalf. Pathway establishes rent prices and home purchase option prices with fixed, below-market yearly increases, typically over a five-year term, giving customers the option to rent or to buy.
Formed by ResiLabs, which in turn was established by Regis Group and developed in collaboration with Dallas-based Invitation Homes and Fifth Wall, Pathway Homes has a senior leadership team steeped in housing and technology expertise.
“With the launch of Pathway Homes,” said K.C. Clearly, company co-founder and chief strategy officer, “we’re focused on helping underserved populations who have a steady income, but still struggle to qualify for a conventional mortgage because of rising down payments or high credit score requirements.”
Pathway Homes says it does this by offering five customer benefits:
Access: Pathway provides options for potential homeowners with decent jobs and incomes, but who are unable to be able to buy a home due to issues with credit or savings.
Fairness: Pathway works with customers to ensure they will have the financial capacity to buy a home. It also provides financial counseling and support, offers transparent terms, and will not impose financial penalties should the customer decide to leave the home.
Flexibility: Customers can move into the home they choose without a commitment that could leave them financially stretched. The company also provides options for future purchases.
Stability: Fixed and agreed-rental payments and purchase option prices provide customers with the ability to plan for the future.
Quality: Each Pathway home will undergo an upfront inspection to ensure it is in good condition and updated with energy-efficient smart home technologies. In addition, each home will benefit from Invitation Homes’ property management services, which includes 24/7 access to property management teams.
“As a single-family home rental provider, we focus on providing choice and flexibility in housing options, and we’re excited to now also support those who want to move into homeownership but may not have the financial capacity to do so through traditional options,” said Dallas Tanner, president and CEO of Invitation Homes, in a statement. Invitation Homes acquired more than 80,000 rental houses across the country during the last decade, according to the DMN.
“We’re pleased to be taking a leading role in removing barriers in our communities and expanding access to homeownership,” Tanner added.
Through all stages of their housing journey, customers can benefit from additional Pathway Homes offerings, including these three:
Homestart allows the customer to move into their new home with only a security deposit due, and rent with an option to buy.
Savings Match. Customers can rent with a deposit of 2.5& of the home’s value, on which Pathway provides a fixed return and a matching contribution over time. Within five years, the customer will have amassed 5% toward the purchase of the home.
Equity Builder. This gives customers the ability to buy half a home with 5% down while renting the remaining half of the home. This will be offered to customers beginning in the second quarter of 2022.
Currently, Pathway Homes solutions are available to consumers in Atlanta and Phoenix metro areas. In the next several months, they’ll also be available to potential homebuyers in Texas, Florida, North Carolina, California, Washington and Colorado.
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