Startups That Offer New Paths to Homeownership

The company typically works with high-credit-score borrowers (>700) and makes money by charging an additional 1% of the home’s price in closing costs.

UpEquity enables home buyers to make offers stipulating that if their mortgage isn’t approved by a certain date, UpEquity will step in and provide an all-cash offer.

UpEquity - latest YC batch.

This is designed to help a buyer’s bid stand out: because offers are all-cash, they’re accepted 68% more than the average bid. Flyhomes makes money from commissions paid by sellers.

Flyhomes buys the home for you with cash. The Consumer can move in immediately and pay Flyhomes daily rent until the mortgage comes through (2 to 3 weeks).

Flyhomes - $140M raised with a16z/Shasta/Canvas.

2. Players making all-cash offers on behalf of clients:

For a $10k fee, ZeroDown will buy a home on a consumer’s behalf and rent it to him for 5 years. Each month, Consumers earn equity in their home. After 5 years, they have credits worth 15% of the home’s value.

ZeroDown offers a similar rent-to-own service, but in very hot real-estate markets.

ZeroDown - $30M in equity led by Sam Altman/Goodwater + 100M debt with Credit Suisse.