Haus Review

Haus is offered by Haus Services Inc., a financial services company founded in 2015 and based in San Francisco, CA. Haus is available in 3 states across the USA.

• Down payment assistance. Will help you pay your down payment and avoid a private mortgage insurance policy.
• You must settle the investment within 10 years. Once the contract term ends you'll need to return the entire investment. Take this into account if you plan to stay in your home for longer than 10 years.
• Good for downpayments and cash-outs. Unlike most competitors, Haus allows you to use the money for the downpayment on your home or as a regular equity cash-out.
• Down payment assistance but no equity cash-out. You can use Haus to help with your down payment. However, you cannot use this product to cash-out on your existing equity.
• Only available in select states. Haus is only available in 3 states.

How does the Haus product work?

A shared equity agreement (also called a shared appreciation agreement or shared equity contract) is essentially a way to sell a small fraction of the equity in your home to an investment company.

The Haus product supports home purchase down payments. Haus Services Inc. aims to help more people afford to buy a home. Rather than giving you a loan, they invest alongside you in your home by matching a percentage of your down payment. Through the Haus product, Haus Services Inc. helps to finance your mortgage down payment in exchange for a share of the home’s future appreciation.

As a home equity loan alternative, the Haus product allows you to tap into the equity in your home without the monthly payments that come from a traditional home equity loan or line of credit. This product primarily targets the home-equity-rich who are in need of cash for reasons such as a home improvement project or to eliminate debt.

The transaction is secured like a loan but you won't be paying Haus Services Inc. a monthly loan payment with interest. Instead, if your home goes up in value, Haus Services Inc. share in the gain; if it goes down, they share in the loss.

How much will Haus Services Inc. invest into a shared equity agreement?

The Haus program offers equity investments that are a perentage of the property's value, but they do not disclose their equity investment percent range. As you might expect, Haus Services Inc. has a cap on the amount of funding they will invest in a single home.

What are the costs associated with Haus?

Unlike loans, the costs associated with shared equity investments are not based on an interest rate. There are no monthly payments or accrued interest. Instead, Haus Services Inc. shares in the change in value of your property. If your property value goes up, Haus Services Inc. gets a share. If the value drops, Haus Services Inc. shares in the losses. They only get their money back when you sell your home – and they typically only make a profit if you also make a profit.

How long does it take to close a deal with Haus Services Inc.?

Haus does not disclose how long it typically takes to approve and fund a shared equity agreement.

What types of property does Haus Services Inc. consider?

Shared equity investors often have restrictions on the type of properties they will invest in. Haus will consider shared equity agreements secured by the following property types:

• Primary home
• Secondary homes and vacation properties.
• Investment properties.