SHARED RISK HOME LOANS
”RESPONSIBLY” EXPANDING Mortgage Credit

OUR PROCESS

Shared Risk Home Loans (SRHL) is a patent pending process focused on responsibly expanding mortgage credit while mitigating Taxpayer and Government liability. SRHL accomplishes this by encouraging all parties participating in the home sale to share the financial risk by investing a portion of their proceeds in an escrow at closing. SRHL allows Family, Foundations, Employers, States, Pension Funds, as well as “For Profit Funds” to participate. SRHL combines traditional lending practices with a “shared risk or risk transfer” component creating a new and innovative Mortgage Finance Enhancement Model. Combining the escrow with traditional insurance provides the Mortgage Provider/Guarantor and the Secondary Market Security previously only associated with higher down payments. SRHL lowers Monthly Payments and Borrowers DTI Ratio which increases Purchasing Power.

SRHL is an important platform that reaches all potential buyers and a significant aid reaching the First-Time or First-Home Buyer with or without Student Debt as well as the under banked and underserved portion of our population. The U.S. Treasury has estimated that over 90 % of millennials will not itemize their taxes and a National Association of Realtors Survey found the vast majority of this group also lacks the down payment to qualify for the most favorable loan terms available in the market. Of this class of potential Buyers, 83% of non-homeowners say student loan debt is preventing them from buying a home. More than half (52%) say their DTI is keeping them from qualifying for a mortgage loan amount needed to buy “the home of their choice”.  SRHL also offers an option to permanently alter this massive problem.

THE SOLUTION

A Mortgage Insurance Company has agreed to participate with Shared Risk Home Loans in a full roll-out with a GSE approval to purchase the SRHL loans.  They have agreed to adjust their rates for monthly mortgage insurance by substituting the SRHL Escrow, dollar for dollar, to be applied as Down Payment when figuring monthly mortgage insurance premiums.  This vastly impacts Buying Power and Mortgage Loan Security and these modifications can make the difference between Qualifying or not Qualifying to Buy a Home for a Low to Moderate or First Time GSE Buyer.