Long-term purchase contract solution provides alternative paths toward homeownership for specific borrower groups
SALT LAKE CITY–(BUSINESS WIRE)–National affordable housing innovator Arrive Home has launched two new iterations of its Earned Equity Program as part of its continued mission to expand access to homeownership for underserved borrowers. Arrive Home’s Earned Equity Program, which helps more consumers achieve their homeownership goals through a long-term purchase contract, is now available in two separate products designed for two different groups of borrowers.
EEP Pathway is ideal for ITIN and certain Visa statuses individuals who may be solid long-term renters looking to move on to homeownership. The program, which follows FHA guidelines with enhancements for accessibility, does not require a Social Security Number or FICO score and has flexible guidelines for the self-employed. Using EEP Pathway, lenders can serve ready-to-buy borrowers with confidence.
EEP DocLight is designed to help gig workers, first-time buyers and those who may not have qualified for a mortgage under traditional FHA guidelines. The program assesses borrowers using FormFree’s RIKI tool for smart, flexible income and asset verification. EEP DocLight’s asset-based risk model reviews P&L or bank statements but does not require tax returns or a FICO score, making it a solid choice for non-traditional earners looking to buy a home.
Arrive Home first launched its innovative Earned Equity Program in 2023. The program enables participants to enter into a homeownership agreement with monthly payments controlled by a 40-year Homeownership Agreement Amortization Schedule. This allows them to use and enjoy the home as their own, with the intention of eventually buying or assuming the property. At any time during the term of the purchase contract, the participant may buy the home at a price that was fixed when the contract was signed. During the term, the customer has time to improve their credit rating and eliminate other obstacles preventing them from qualifying for a home, eventually buying the property outright using a traditional mortgage loan.
Since its launch, the EEP Program has found tremendous success with mortgage lenders looking to serve borrowers previously locked out of homeownership. Now, by designing two EEP iterations intended to cater to different borrower profiles, Arrive Home can help its lender partners reach more underserved borrowers while simplifying the process for all parties involved.
“Launching two versions of EEP was a natural next step to expanding access to the program for more Americans looking to achieve their dream of homeownership,” said Arrive Home Chief Communications Officer Tai Christensen. “By bifurcating the program, we’re helping lenders identify potential borrowers who stand to benefit from EEP’s innovation and flexibility.”
About Arrive Home
Arrive Home is a national affordable housing program in the lending space that offers down payment assistance and innovative credit solutions for responsible borrowers across communities. Arrive Home is dedicated to increasing homeownership by working with governmental entities, mortgage lenders and nonprofit groups to offer creative and diverse mortgage products that are designed to enable correspondent lenders to confidently deliver loans to reliable borrowers. In doing so, Arrive Home aims to increase access to homeownership for credit worthy, low- to moderate-income American families, creating generational change one home at a time.
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Jacob Gaffney
jacob@gaffneyaustin.com
817.471.7627
