A Family Second
An appreciation-based second with no monthly payment, funded by the borrower’s family.
The borrower’s family invests in the Tufa First Home Fund. The fund places an appreciation-based second in the borrower’s home purchase, behind a conventional first mortgage. There are no payments, and no interest accrues. When the home sells, the fund receives the same share of the sale price that it invested in the purchase price.
The second has no payment, so only the smaller first mortgage counts.
The family investment reduces the first mortgage on the same home.
Below 80 percent LTV, the first mortgage no longer carries mortgage insurance.
For the same home, compared with buying without the family investment. Combined loan-to-value is capped at 95 percent. Illustrative, using the assumptions on the For agents calculator.
Tufa is not yet available.
When it launches, Tufa will work through lenders that choose to participate. If borrowers or agents are asking you about it, or you would like your company to consider it, share your interest below.