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Haus Aids In Financing Home Purchase

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Haus Aids In Financing Home Purchase

Haus makes the process of homebuying more affordable and flexible by creating a new way of financing purchase

Haus was launched in the year 2016 to bring more transparency to the home-buying process. Not just transparency, the startup also aims to make home buying more affordable and flexible. The startup has recently raised $7.1 million in new funding. 

The amount includes $4.1 million seed equity investment led by Montage Ventures and $3 million in debt. Haus was created by Uber Co-founder Garrett Camp as part of his startup studio Expa. 

Back when it was launched, the startup was focussed on digitising and bringing more transparency to the home-buying process. After the former executive of Trulia, Jonathan McNulty joined Haus as the CEO, a co-investment model was introduced where Haus helps to finance a purchase by buying equity in the home. 

Haus operates on the core idea of sharing the risks and rewards of changing home values instead of the homeowner taking on debt. Instead of paying off a mortgage, the homeowner makes monthly payments to Haus that purchases more equity and at the same time pays the startup and its investors.  

The company claims that these payments are 30 percent lower than a traditional mortgage payment. McNulty said that Haus caps the “option’’ portion of the payment to ensure that homeowners always purchase as much equity as they did with their first payment even if the home’s value increases. 

He explained that from a consumer’s perspective, there have been only two ownership options. Either pay cash for your home or borrow money from a bank or lender with a mortgage. 

He said that Haus aims to replace mortgage relationship and create a direct partnership with the consumer to create an entirely new way of financing a home. Further, Haus can also work with existing homeowners to replace part or the entire mortgage. However, McNulty noted that in some cases, it makes sense to keep some mortgage debt active for tax purposes.

The service is currently operational in Washington, California, and Oregon. The new funds will immensely help Haus to expand its team and focus extensively on marketing and tapping new geographies. 

Montage Ventures Partner Matt Murphy said that they are excited to partner with Haus to bring much-needed relief to current homeowners and prospective buyers alike. 

Source: TechCrunch

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