Applying and becoming an Owni
Am I eligible?
- Our program is designed to support first-time homebuyers. This is defined as someone who does not own a home or have an active mortgage on their credit report.
- We evaluate each application individually and consider your income and expenses, credit score, and on-time payment history to determine eligibility. Currently, we require each applicant to have a minimum FICO score of 680 to be eligible for the Ownify program.
- The easiest way to determine whether you qualify for the Ownify program is to complete our free pre-qualification online process. It only takes a couple of minutes and does not impact your credit score.
- Ownify will verify your household income as well as run a credit check and background check. If you qualify, we will tell you your home purchase budget instantly and you can then decide whether to proceed.
- To apply now, or to join our waitlist, please click here
How is my home budget determined?
- When we set your budget, we are doing our best to ensure that you can afford your monthly payments and own 10% of the home at the end of the five years. Our calculation takes into consideration your current debt, your future payment commitment to Ownify, and your income.
What are the legal agreements I will need to sign?
- The Participation Agreement is the first step in acquiring your new home. The Agreement outlines how we will partner to buy a home for you. Once we’ve determined your eligibility, you will be able to review the Participation Agreement in your MyAccount portal. When you sign the Participation Agreement, and pay your application fee, we will set up a Partnership for you and you’re ready to start shopping for homes! Once you’ve signed the Participation Agreement, we will also share the Partnership Operating Agreement with you which outlines the details of the Partnership.
- When are the application and option fees due? The $500 fee is due when you sign the Participation Agreement. This fee is split into two components: a non-refundable application fee of $250 and a refundable option fee of $250. The $250 application fee is credited towards your 2% down payment when we successfully buy a home together.
- In what circumstances would my option fee be refunded? If you choose to not progress with buying a home with Ownify, the $250 option fee will be refunded to you.
What is the Partnership?
- In order to jointly purchase a home with you, we set up a Limited Liability Company (LLC). The property will be purchased by, and title held, under the LLC. You are a member in the LLC, alongside Ownify. Over time, your partnership stake in the LLC increases as you buy more equity in your home.
What is the Operating Agreement?
- The Operating Agreement outlines how we’re operating the LLC. It contains two sections: a) a tenancy agreement that confirms that you, as the Owni, have the exclusive right to occupy the property and b) the equity share agreement that outlines how your equity stake in the partnership (which owns your home) increases over time.
- It is important that you review the Operating Agreement in detail to make sure you understand it before signing it.
Finding a home with Ownify
Where does Ownify operate?
- Our mission is to rebuild the path to homeownership nationwide. We are launching in the Triangle area in North Carolina and will expand from there to other cities across the country. Please join our waitlist to be notified when we’re launching in your area.
- If you are looking to buy your first home in the Triangle then you can apply here
What kind of properties can I buy with Ownify?
- Because we are co-investing with you in the purchase of your home, we want to make sure we’re buying properties with strong appreciation potential. Because of that, the Ownify program is focused on single-family homes with the following criteria:
- Purchase price of $250k-$750k
- The property must have at least 2 bedrooms and 1.5 baths
- Lot size must be smaller than 2 acres
- We currently do not co-invest in multi-family buildings, townhouses, condos, vacant lots, unfinished homes, or homes that do not meet our inspection criteria.
- If you have a specific home that you’d like to propose as a co-investment opportunity, please contact us at [email protected]
Can my local agent assist me if I am purchasing a home with Ownify?
- Yes. We love working with local agents to ensure you can place the most competitive bid for your dream home. Please introduce your agent to us or ask them to contact us at [email protected]. If you don’t yet have an agent, we can introduce you to our trusted local agents.
How does the down payment work?
The down payment for the Ownify program is 2% of the purchase price (including closing costs) for the home we’re buying with you. It is important that you have the down payment available to send to Ownify before we make a bid on a home.
Can I make a higher down payment?
- Yes. You can purchase up to 5% equity in the first year, inclusive of your down payment.
Buying a home with Ownify
How does the purchase process work?
- Once you’ve identified a home you’d like to purchase with Ownify, our professional team of home buyers will work with you to ensure that we buy the home at the best possible price.
- We will assess the home and share the results with you.
- This process protects both you and us from buying homes with hidden issues, unforeseen repair costs, or lack of appreciation potential. Our team has collectively bought more than 5,000 homes so you will have an experienced and trusted partner by your side throughout this process.
Who pays for the closing costs when purchasing my home with Ownify?
- We add any buyer closing costs to the purchase price of your home to establish the Entry Price. You are responsible for a down payment of 2% of that Entry Price while Ownify will make up the remainder.
How do due diligence payments and earnest payments work? - Earnest money and due diligence payments will be paid by Ownify directly to the escrow agent (or seller in the case of a due diligence fee).
Being an Owni
What is included in my monthly payment to Ownify?
Your monthly payment to Ownify covers two items:
- A monthly equity buy that increases your ownership percentage in your home over time, from 2% when you move in to approximately 10% after five years. The monthly payment you make is based on the 5-year payment schedule provided to you prior to closing on the home. The amount of equity that each monthly payment buys is based on the then current valuation of the home.
- A monthly occupancy payment that covers all costs associated with the property such as maintenance & repairs, homeowner’s insurance and taxes. This occupancy payment is similar to a rental payment and comparable to rent in your local market. However, Ownify charges the occupancy payment only on the fraction of the home you don’t own, so the more equity you build, the lower your occupancy payment becomes.
- Think of the Ownify program as buying your home “brick by brick”. If you assume your home contains 10,000 bricks, you buy 200 to get started. Every month, you buy another 13 or 14 bricks. At the same time, while you’re living in the home, you pay rent on the bricks you haven’t bought.
How does Ownify value the home?
- Ownify revalues your home every month using a recognized valuation method from a reputable third party for the metro area in which you live. For example, if home prices in your metro area go up by 2% for the year, then we reset the value of your home to increase by 2% as well.
- Any time you buy incremental equity in your home (i.e. more bricks), you buy those bricks based on the current valuation.
Am I really an owner of the home?
- Yes, you are an equity owner on day one. As an Owni, you are a co-owner of the Limited Liability Company that owns your home, alongside Ownify. You own a 2% stake in that LLC and therefore a 2% share of the home on day one, while Ownify owns the other 98% equity stake.
- Over time, through your monthly equity purchase, you increase your ownership stake in your home while our ownership stake decreases. In 5 years, you will own approximately 10% of the equity in your home and you can buy more equity at any point. Unlike a mortgage, there is no debt involved.
- You are paying an occupancy fee on the portion of the home that you haven’t bought. The Operating Agreement gives you the exclusive right to occupy the home and outlines your rights and obligations.
Can I make improvements to the property, e.g. renovate the kitchen?
- Yes, making the home your own is something we encourage and support. You can make cosmetic changes like painting the walls, replacing the carpets, installing shelving etc without Ownify’s involvement.
- We will consider major work on a case-by-case basis as these changes will require approval. As ownership partners in your property, we want to ensure that any work is done in compliance with local building codes and permitted appropriately.
- Because of the way we value your home, any increase in the home value due to improvements you make is yours to keep when you buy out the remaining equity at the end of the 5-year term.
How do utilities work?
- Ownify will establish water and sewage services for your property (in the name of the LLC). You are responsible for all water and sewage costs/charges. You are also responsible for selecting, managing and paying for your utilities such as electricity, internet, etc. Ownify will provide you the contact details for local providers.
Is my monthly payment fixed?
- Yes. Your payment schedule is fixed for the first five years so you know exactly how to budget.
How do you ensure I own 10% of the property at the end of the 5 years? - Your equity buy payment is set such that you will own approximately 10% of the home after 5 years. We estimate the future appreciation of your home at the outset, however the actual monthly equity buy is based on the value of the property at any given point in time, therefore your equity build may deviate slightly from the targeted 10%.
Can I overpay to build more equity faster?
- Yes! You can choose to buy more equity each month. For additional, voluntary equity buys, there is a minimum monthly payment amount of $100 and the total equity purchase (including both the contracted monthly equity buy and any voluntary equity buy) cannot exceed 3% in the first year and 2.5% in the following four years.
- During the 5-year term of the agreement, you can therefore purchase up to 15% equity in your home.
What does the included insurance cover?
- Ownify will take out homeowner’s insurance on each property. Homeowner’s insurance will cover the full value of your equity stake in case of loss.
Who pays the property taxes?
- Ownify will pay any relevant property taxes.
Who pays for repairs and maintenance?
- Ownify will arrange and pay for any necessary repairs.