Down payment assistance can come in many forms, but a company called Loftium is helping boost home buyer’s down payment in a clever way.
Home buyers can get up to $50,000 from Loftium to buy a home in the city. The catch is that the buyer must Airbnb an extra bedroom for 12-36 months, and share the income with Loftium. This is a really inventive way to help buyers grow their down payment by leveraging the Airbnb potential in the property.
Here’s how it works:
1. Become an eligible Loftium buyer
The first step is to get connected with a Loftium-eligible lender to get pre-approved for a loan. The great thing about Loftium’s site (see the link at the bottom of this post) is that it’s very intuitive. You sign up and set your parameters and they’ll introduce you to a Loftium-eligible lender, so you can become a qualified Loftium buyer.
2. Find the home right for you
This is where the fun begins. Now that you are qualified, you’re ready to begin your home search. The down payment assistance from Loftium makes homes more affordable to purchase. Loftium offers instant down payment offers – up to $50,000 – depending on the property. When you’ve found the right home with the right down payment offer, you’re ready to sign up to become an eligible Loftium buyer.
3. Make an offer with down payment assistance
Loftium will give you a committed down payment quote that you can use to make a strong offer. The added funds make for a more compelling offer to home sellers, because sellers look for the most qualified buyers. A buyer putting more money towards their down payment is considered a stronger candidate.
4. Move into the home
After navigating the escrow and closing process in your state, the title is recorded and you are the new homeowner. Congratulations! Loftium sends you a welcome package to help you get your Loftium bedroom set up with linens, an automated keypad, and more. Remember that extra bedroom you need? That’s going to be the cash cow that will help fund your home purchase and pay back Loftium for their down payment assistance they provided.
5. Start hosting and start earning
Now it’s time to get to work! For the next 12 to 36 months, depending on your agreement, you’ll be hosting guests in the extra bedroom. While this may sound like an extra job, Loftium makes it a much more automated experience for you by providing automated messaging, smart pricing, and cleaner resources. Whether you are home or on vacation, a Loftium host can spend as little as 15 minutes a week managing their bedroom listing.
6. You’re all done!
Once you have completed your agreed time to Airbnb the extra bedroom, you’re free to continue hosting. Now, you are an experienced host and will get to continue earning money on Airbnb, but now 100% goes into your pocket! If you’re comfortable hosting people in your home, this is a great way to fund your down payment and buy a home.
For more information, visit www.loftium.com