Our co-investment model increases buying power for low- to moderate-income (LMI) families, giving them the boost they need to buy a home.
The problem
Homeownership is most people's greatest opportunity to create and build wealth. But buying a home is out of reach for many low- to moderate-income homebuyers — especially people of color.
40x
The median net worth of a homeowner is 40x that of a renter
29 points
The gap between Black (45%) and non-Hispanic White homeownership (74%) was wider in 2020 than it was in 1960
60%
Roughly 60% of U.S. households can’t afford a median priced home
Who earns below 100% area median income in our communities?
Annual income required to afford a median price home in each respective Texas metro area:
The solution
A co-investment model eliminates the biggest barrier to homeownership — affordability. But our holistic approach goes beyond lowering monthly mortgage payments.
Increase buying power
With our significant upfront assistance, Forward families have up to 35% more buying power.
Incentivize savings
Our matched savings program enables the homeowner to save 30% more for a rainy day.
Provide financial coaching
We equip families with the knowledge and skills they need to achieve their financial goals.
Investing in families by investing with them
How it works
Making a down payment of at least 20% gives homebuyers access to more competitive mortgage rates and eliminates the need for private mortgage insurance (PMI). Our co-investment makes that possible.
The homebuyer contributes a minimum of 2% of the home’s purchase price at closing.
We pay up to 18% of the purchase price to bring the total down payment to 20%. This assistance is a “silent” second mortgage with 0% interest — the homebuyer doesn’t make any payments on this loan while they live in the home.
When the homebuyer sells the house, they pay back the assistance we provided plus 1% of the home’s appreciation for every 1% of the purchase price we contributed.
We reinvest that equity to provide down payment assistance to more families.
The homebuyer keeps the rest of the equity from the home sale!
