With 30 programs and counting, home-equity sharing is one way to clear a down payment hurdle

Michael Micheletti News

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For some buyers, owning most of a home may be better than never owning at all

Need help coming up with a down payment on a home? There may be help in unexpected places, as around the country dozens of programs offer home buyers funds for a down payment in exchange for a stake in the home’s equity.

As MarketWatch previously reported, private companies like Unison and OWN Home Finance are trying to create a market for this business model. They’re not alone. A new report from Atlanta-based Down Payment Resource highlights more than 30 such programs administered by municipalities, nonprofits or universities.

Public-sector plans predate newer versions from private investors, Down Payment Resource noted, but all such programs can be a boon for buyers struggling with what many consider the biggest barrier to homeownership: scraping together a hefty down payment while paying rent, student debt and other living expenses. That can make homeownership for many “an all-or-nothing proposition,” as one analyst told MarketWatch in a May interview….

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Michael Micheletti

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Michael has worked at Unison since 2016. He draws upon his experience in real estate, taxes, and healthcare to inform consumers on a wide range of topics related to homeownership.

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