The primary challenge for new home ownership is having sufficient down payment funds. Recent studies indicate over 80% of possible buyers stay in the ranks of renters due to inadequate down payments, even though they have the income to service mortgage payments. For those committed to purchasing a home, without sufficient personal funds, the alternative has been to borrow additional funds, either through their first mortgage lender or arrange for purchase money second mortgage. Either way, mortgage payments are higher, which may cause strain on the buyer. Further, mortgage loans higher than 80% of property value typically require private mortgage insurance (PMI), which adds to the payment strain.
As an alternative, PRIMARQ offers a vehicle to incrementally add to your down payment funds through providing access to interested investors, seeking to participate with you in expectation of property appreciation. The investor is not providing an additional loan, secured by your property, but rather an equity contribution to supplement your down payment, and for which, will own a portion of your home.
As investors are seeking capital appreciation, not every property may be appealing due to markets, pricing, or other factors. But for those properties offering the potential for upside gains, investors can play a beneficial role in getting home buyers to consummate their purchase, while limiting the financial strain of excessive mortgage payments.