Haus

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.

• Discounted monthly payments. Instead of mortgage payments, you make a discounted monthly payment to Haus.
• Fair credit accepted. If you have a credit score of 650 or higher, you may qualify for a shared equity agreement with Haus.
• 10-year term. The investment has a contract term of 10 years, at which time you'll need to settle up with Haus Services Inc.. You can do so by paying them in cash, getting cash-out refinancing, selling your home, or partnering with Haus Services Inc. for another term.
• Cash-out only. Existing homeowners can access up to 80% of their property's value without taking on debt. Funds can be used for anything, from paying off debt, renovating or retirement.
• Only available in select states. Haus is currently available in 3 states.

How does the Haus product work?

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

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 is designed for homeowners who need cash for reasons such as home improvement project or to eliminate debt.

Haus will have a lien on the property (just like a mortgage does), but since it's not a loan you won't be paying Haus interest or a monthly payment. Instead Haus gets paid a share of your home's value when the contract ends, which typically occurs when you decide to sell your home or buy Haus out. For example, Haus might provide you with a cash investment today equal to 10% of your home's current value in exchange for 16% of your home's future value when you sell.

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

The Haus program offers equity investments that range from 0% up to 80% of a property's market value. 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 cost associated with an Haus Services Inc. investment is not based on an interest rate. There are no monthly payments or accrued interest. Instead, Haus Services Inc. shares in the future value of your property and typically only receives a return on its investment when you sell your home or decide to buy Haus Services Inc. out. The percentage of your home’s value that Haus Services Inc. shares when the contract ends is larger than the percentage of Haus Services Inc.'s investment in your home. Therefore, Haus Services Inc. will make a profit if your home’s value does not change. If your home’s value increases, Haus Services Inc. will make a larger profit. If the value drops, Haus Services Inc. will make a smaller profit, or might incur a loss.

The Haus program includes an origination fee equal to 3% of the Unlock investment. This will reduce the amount of cash that you receive at closing. There are also expenses that are typical for any real estate financing transaction, such as appraisal, inspection and closing costs.

Unlock’s profit on its investment is subject to an annualized cost limit (typically 18%), Your cost for the Unlock money can never exceed the limit. In many cases, and depending on how long the contract remains outstanding, the cost will be significantly lower.

What are the terms for a shared equity investment via Haus Services Inc.?

You can use the funds provided by Haus for up to 10 years. After 10 years, you will need to settle up with Haus Services Inc., either by selling the home or buying Haus Services Inc. out. You can finance a buyout with your cash, refinancing your mortgage, or by partnering with Haus Services Inc. for another term.

To buy Haus Services Inc. out, you would need to pay back their original investment plus or minus their share of your home’s change in value.

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