Everything you need to know

Frequently Asked Questions

The Basics

Co-Investment at a high level
How can Balance offer a low cost alternative to a mortgage?

Balance invests in your home in exchange for a portion of your home equity. As a co-owner, Balance shares in the costs, appreciation and depreciation of your home. Sharing in your future home appreciation allows Balance to offer attractive terms with low monthly payments and flexible qualifying criteria.

How does a Balance co-investment benefit me?

Balance’s flexible Co-Ownership Program can help provide relief, save your home, and give you the cash flow you need to deal with life’s unpredictability. Balance provides the unique ability to receive a co-investment in your home in exchange for affordability and flexibility today. Balance is a great option if you want to access your equity, improve your current financial situation, and then build your credit profile to go refinance later with favorable terms. With reduced debt and a higher credit score, you may appear more creditworthy to lenders, making refinancing within reach over time.

With a traditional lender, you own all the risk in your home. With Balance, you purchase what you can, and only take on the risk for that portion. Because we share equity, Balance can often provide significantly reduced monthly payments. When the value of your home goes up, we both win, and if it drops, Balance is by your side to help shoulder the burden. If you’re able to qualify for a home loan, we recommend checking out this option and comparing it directly with our quote.

How much of the value of my home does Balance share?

The percentage of home value that we own is a simple calculation: Balance’s total investment (which is the cash used to pay off your mortgage), plus any other requested debt payoffs and cash out, divided by the value of your home.

How does Balance work?

Unlike conventional lending that fails to meet homeowners’ needs, Balance has created a flexible co-ownership program that helps you avoid foreclosure and take control of your finances now and for the future, even with a low credit score. In exchange for an ownership interest in the home, Balance pays off your mortgage and up to $50K of other debts so you can get back on your feet without the pressure of snowballing overdue payments. As a co-owner, Balance shares in typical home expenses such as insurance, taxes, and necessary repairs, along with the future appreciated value of the home.

Co-owning a home with Balance puts you back on a path toward successfully qualifying for a new mortgage or, if you prefer, selling your home.

Who owns the home in a Balance co-ownership?

You do, together with Balance!

Does Balance have decision making power without my consent?

As long as you are current under your payment obligations, Balance can never sell the property or cancel the agreement.

Can I qualify with a low credit score?

Yes! To us, you’re more than just your credit score. There is no minimum credit score required, and owners in forbearance and foreclosure may still qualify. Since Balance is a co-investor and not a lender, we are able to offer flexible terms and use your home equity and income as qualification criteria.

Plus, a Balance Co-Investment could help increase your score to help you appear more creditworthy to lenders.

What happens with my existing mortgage?

Balance pays off your existing mortgage, helping to lower your overall debt and increase your credit score.

Getting Started

Our simple and pressure-free investment process
How do I qualify for a Balance co-investment?

To qualify, Balance will review your current home equity, along with your income and expenses, and compare it with our investment criteria. While many people qualify based on these factors alone, Balance will also consider things such as projected ability to repurchase and home condition to determine whether we are a good fit to work together.

What happens if I want to back out of a Balance Co-Investment?

We want you to be excited and confident about entering into Balance’s Co-Ownership Program. That’s why we provide the option for you to back out at any time before Balance finalizes a Co-Investment in your home—without any fees or penalties.

Will my credit score be impacted if I receive a proposal?

Nope! We understand that you are working on improving your credit score. To receive a proposal from Balance after you apply, we only need to do a soft pull of your credit report, which has no impact on your credit score.

How long will Balance be a co-owner?

We’ve tried to make Balance as flexible as possible for our co-owners, so there is no minimum term. Balance currently offers a 10-year maximum term, so you can end the co-ownership whenever you decide to buy Balance out and move to a traditional mortgage or sell the home entirely.

What documents do I need to submit as part of my application?

As part of the application process, we require homeowners to submit income, tax and bank statements to give us a clear picture of your financial situation.

Owning with Balance

The benefits of co-investment
Can I repurchase Balance's shares in my house?

Yes! When you enter an agreement with Balance, we'll set a starting price for your home and adjust it up or down every three months based on the Federal Housing Finance Agency's Home Price Index for your metro area. This means any appreciation in your home’s value above this index will be yours to keep! At any time, you can buy back all—or a portion—of Balance’s interests in your home at this price.

Are there any closing costs associated with a Balance Co-Investment?

Similar to a mortgage and other home equity products, Balance charges a service fee, and you are responsible for paying the closing costs. You have the option to pay all of the closing costs with a portion of your home equity, so Balance’s customers typically pay $0 in cash at closing. In fact, customers are also able to sell additional equity to Balance at closing to receive additional cash to pay off other debts. Your closing costs, including any cash-outs you elect to receive, will be summarized in your Balance proposal.

What’s included in my monthly payment to Balance?

You’ll pay a monthly fee to Balance that includes an occupancy payment for your exclusive occupancy of the home and your share of the home’s expenses, such as insurance and taxes.

What is a Flex payment?

A Flex Payment allows you to use your home equity to make a monthly payment in lieu of a cash payment. This is something Balance created and provides as a benefit for our co-owners if they ever need or want to use it.

If an unexpected event ever comes up and you can’t make a cash payment, you don’t have to worry about any late fees or playing catch-up—just use your Flex Payment and focus on paying next month. Unlike a traditional mortgage where a missed payment can start the foreclosure process, Flex Payments prevent stress and the potential snowball effect of falling behind.

What happens if I miss a payment?

With Balance, you are allowed to use home equity instead of cash to make a certain number of payments each year—we call this a Flex Payment. The number of Flex Payments you can use will be detailed in your proposal. This way, there’s no falling behind if an unexpected life event comes up. If you exceed the number of allowed Flex Payments, Balance will reach out to learn more about your situation and help create a plan for you to become current on payments, finance your home with a traditional mortgage, or sell your home.

Does Balance record a lien on my home?

Balance does record a lien on the home to protect our co-ownership interest. The lien is removed upon your successful exit from the co-ownership program—in other words, when you buy us out by selling or obtaining a traditional mortgage. This is a standard practice in any real estate transaction, given the large amount of cash involved. Of course, Balance cannot act on the lien unless certain conditions have arisen.

Ending Co-Investment

You're in control and can sell or refinance at any time
How much do I owe Balance when the co-ownership ends?

When you choose to end our co-ownership relationship, we’ll calculate the increase or decrease in the home’s value according to the Federal Housing Finance Agency’s published Home Price Index (HPI). The HPI measures changes in single-family home values over time based on sales data from your local market.

The buy-out amount will be Balance's ownership percentage at that time multiplied by the exchange value of the home—even if it ends up being less than our initial investment amount. Adjusting based on local market performance keeps interests fair without subjective appraisals.

If the housing market decreases, could Balance also lose money on my home?

Yep—our incentives are aligned, and we both hope your home will increase in value. But if the value of the market decreases, we will share in any market losses. This is one way Balance helps hedge your risk since a traditional lender would still be entitled to their full amount.

When do I repay Balance?

You can pay Balance back when you’re ready—Balance has flexible payback options and no minimum term. You’ll repay Balance when you are ready to end our co-ownership relationship to transition to a traditional mortgage or sell your home—or when the 10-year term of our program has expired.

About Balance

Our company and mission
What are the costs associated with the Co-Ownership Program?

Our pricing is fair and transparent: Balance charges a one-time shared ownership entry fee of 2.5% of your home value to co-invest in your home and pay off your mortgage and any other eligible debts. Homeowners have the option to save their cash and pay this one-time fee using their home equity, so a homeowner can partner with Balance without paying any cash to Balance at closing.

You’ll pay a fixed monthly fee to Balance, based on the percentage of the home co-owned with Balance. You have the option to increase your ownership percentage at any time by buying back equity, which also helps lower your monthly fee.

When you choose to end your co-ownership relationship with Balance, the final amount due is based on the starting value of the home, adjusted for any changes in your local market. As the value of your home changes, Balance’s buy-out amount is adjusted accordingly to reflect the gain or loss of our investment.

Who's behind Balance?

Balance is a passionate, experienced team of real estate experts—backed by top-tier investors—on a mission to end foreclosure with a more affordable and flexible way to own a home.