The Model

The structural inversion at the heart of HomeDividend.

Every other equity-share product in market is signed after a borrower already owns their home. HomeDividend is signed before — and that one change rewrites the addressable market.

Industry Standard

Post-Purchase Equity Share

Unison, Hometap, Point, Splitero, Aspire and their peers provide cash to homeowners in exchange for a share of future appreciation. The product is, in substance, a second-lien refinance priced as shared equity.

  • Requires existing homeowner equity
  • Cannot help a first-time buyer close
  • Lender comfort comes after the fact
  • Sits in a crowded refinance market
HomeDividend

Pre-Purchase Equity Share Guarantee

A signed guarantee is in place before the borrower closes. The lender extends credit with the guarantee posted; the borrower owns 100% of the home and pays a 10% Equity Bonus on disposition.

  • Underwrites new homeowners, not existing ones
  • Unlocks credit-limited buyers who pay rent
  • Lender sees the guarantee at the closing table
  • No competing pre-purchase product in market
Lifecycle of a Guarantee

How a single mortgage flows through the SPV.

  1. 01
    Underwriting

    A first-time buyer is screened through our alternative-credit model. Income, residual cashflow and rent-history compose the core signal.

  2. 02
    Guarantee Issued

    HomeDividend Capital posts a Pre-Purchase Equity Share Guarantee to the lender. The borrower receives standard title; the loan proceeds normally.

  3. 03
    Capital Earns Yield

    Funded capital backing the guarantee sits in U.S. Treasuries. Investors share T-Bill yield pro rata while no draw is required.

  4. 04
    Equity Bonus on Exit

    When the home is sold or refinanced, 10% of the realized gain accrues back to the SPV and is distributed to investors per fund mandate.

Investor Economics

Two return streams, calibrated by mandate.

Each fund earns from a different combination of the same two underlying engines: T-Bill yield on funded capital, and the 10% Equity Bonus on appreciation of the homes we guarantee.

Fund-by-Fund Detail
Fund T-Bill Yield Equity Bonus Share
Fund I
Direct Impact
 Pro rata, full 40% of the 10%
Fund II
Unfunded Commitment
 — (no T-Bills purchased) 30% of the 10%
Fund III
Strategic Guarantee
 Pro rata, full Pro rata on prime borrowers

Remaining Equity Bonus shares accrue to the HomeDividend operating company and reserve account in proportions set in each fund's governing documents.