Haus introduces flat fee homeownership

Real estate co-investor Haus has launched a new financial solution that “upends the existing home financing market.” The startup, which is backed by Assurant Ventures, is offering customers a flat fee homeownership for $1,000/month, plus the cost of property tax, insurance, maintenance, and HOA payments, on homes with a Haus investment value up to $2,000,000. In addition, customers have access to buy and sell their equity, giving them liquidity on their largest asset.

The San Francisco-based startup offers an alternative to mortgages by investing alongside home buyers, claiming that its model can help lower monthly payments by up to 30%. Haus shares in the appreciation and depreciation of the home but the individual is the owner on the title. The startup currently operates in California, Oregon, Washington, and Colorado, with plans to expand to additional states later this year, and it also offers mortgage refinancing in California.

“According to a recent study from Consumer Affairs, 78% of millennial homeowners now feel house poor, and 40% of homeowners take on second jobs to afford their mortgage. We believe consumers deserve another path to stable, long-term housing. With our first round of customers, we had several families who lost their jobs and income due to Covid-19. While this would traditionally end in foreclosure, with Haus these customers used a small portion of their equity to cover their monthly payments, and when they were once again employed, they continued making monthly payments and some even bought back additional equity.” – Haus CEO Jonathan McNulty.