FundMyHome
Democratize the housing market and make it more available to first time buyers, by matching buyers with “passive co-owners”. Sharing economy is everywhere, why not co-own your house?
Project Description
FundMyHome is a lending service, that makes it possible to invest your crypto into private property, and at the same time help first-time buyers to get the funds needed to buy their first home.
— Problem —
The housing market is pretty much closed to first-time buyers, unless you are born into wealth. How can the crypto community help making the housing market democratized and more accessible to first-time buyers?
— Solution —
The biggest problem with buying your first house, is that you need 20% of the purchase in cash, to be qualified for a mortgage. It doesn’t matter if you have a steady income and good economy, saving up for those 20% take years and years.
What if we created an environment where those 20% could be founded by the crypto community as ”passive co-owners”?
FundMyHome makes it possible to invest your crypto into private property by loans to first-time buyers and having the value of that loan being pegged to the property. To tackle the risk in investing in a specific property, all the loans are gathered in the same pool. Making the pool simulate an environment that’s similar to the index of the housing market. If the housing market goes up 25%, so does the value of your loan!
A lender deposits crypto into a pool. The user issues a loan from the pool. When the user has bought their first home, the user must register what property the loan is pegged to.
Instead of paying interest and amortization, the user pays a monthly fee to the pool. When the users sell the property (first-time buyers lives in average 3 years at their first place), the loan is paid back to the pool with the value increase built into the contract as interest.
How it's Made
Unforeseen circumstances within the team, had us left with only a marketing person and a graphic designer, so the building was more on a conceptual level, rather than technical. But the idea is that the FundMyHome Dapp consists of one smart-contract that is triggered each time a loan is issued. We use the pool model to spread the risk for the lendors.
