Overview
What is a GoodRoots Shared Equity Lease?
The GoodRoots® Shared Equity Lease is a new kind of shared equity agreement that gives you shared appreciation rights in the home (called Shared Equity Rights) while you rent. When you choose a Shared Equity Lease instead of a mortgage, we buy the home on your behalf and hold onto the deed until you’re ready to buy. Along the way, you’ll make fixed monthly payments to add to your Shared Equity, adding up to a 20% down payment over 10 years.
Your Shared Equity grows with the value of the home, so you can build wealth and lock in your future home purchase one payment at a time without worrying about rising home prices.
GoodRoots created this new model to unlock homeownership in high-cost housing markets. We combined the benefits of owning (long term control, fixed payments, wealth accumulation) with the best of renting (flexibility, low cost) to re-imagine the typical path to first-time homeownership.
We believe Shared Equity is the future of first-time homeownership, letting you put down roots today and grow into homeownership over time. Read more about our mission here.
Who owns the home?
GoodRoots owns the home while you build Shared Equity gradually over time. It’s lower cost, less risky, and more flexible than a low-money-down mortgage. Use our calculator to see how much you could save.
What is my monthly payment?
Your fixed payment includes Shared Equity and Rent. These costs stay flat for 10 years.
Your Shared Equity payments add up to at least 20% for a down payment by the end of 10 years, guaranteed! So on average, you’ll purchase roughly 2% of the home’s value each year. The specific amount of your Shared Equity payment depends on how much Shared Equity you purchase upfront (if any), the value of the home, and other local market conditions.
Your Rent will be much lower than typical rents for similar properties, since you’ll be covering the costs of repairs, property taxes and insurance.
Use our calculator to see what your monthly payment could be.
What happens after 10 years?
You can take full ownership, rollover your Shared Equity into another GoodRoots home, or cash out and walk away.
After 10 years with GoodRoots, your Shared Equity is guaranteed to add up to at least 20% of the home’s value, so you can rest easy knowing your future down payment is fully covered.
Costs
Who covers repairs and maintenance?
Customers are responsible for the cost of maintaining their home, but we make this hassle-free. Our proactive home care team will send you supplies and reminders to keep you on track, and when necessary, we’ll pair you with vetted local professionals to handle repair and maintenance requests.
Taxes & insurance
You’ll reimburse us monthly for taxes and property insurance, just like a homeowner. These costs may rise over time, so each year we’ll re-assess the amount accordingly.
Can I make major improvements or renovations?
You’re free to make cosmetic upgrades anytime, including interior paint, new lighting fixtures, new decorations, etc.
Larger upgrades (we call these Major Improvements) are approved on a case-by-case basis, so reach out to GoodRoots before getting started.
When you make pre-approved upgrades, we'll add the costs to your Shared Equity balance!
All of these issues are covered in the lease agreement, and Shared Equity Program Guide. Get pre-qualified here to access these resources.
How risky is this?
The Shared Equity Lease is lower cost and offers far more protection than buying with a low-down-payment mortgage.
If the value of the home goes down, your Shared Equity would go down in value too, but GoodRoots absorbs the vast majority of the losses, and your Shared Equity can never be “underwater”. In fact, if the value of the home goes down, your monthly payments will buy even more Shared Equity Rights, meaning you’ll be ready to fund your down payment even sooner.
If the home isn't a fit, you can rollover your GoodRoots Shared Equity into a new home. This provides far less risk than buying your home outright, which could lock you in for years to avoid significant losses from selling your home so quickly.
If you choose to cash out and walk away without buying your home or rolling over into a new home with GoodRoots, you'll give up some of your Shared Equity, but never more than half. Our most successful customers stay in the program until they achieve homeownership to avoid giving up any Shared Equity.
Purchase
When can I buy the home?
You can buy the home at fair value anytime between two years and 10 years. No bidding wars, no competing with all cash offers - just login to the GoodRoots app and get started!
Along the way, your GoodRoots Dashboard gives you the tools and insights to choose the best time to buy.
How is the purchase price determined?
The purchase price is based on fair market value whenever you choose to buy. Our valuation process combines cutting-edge technology and professional oversight to make sure the price is fair. If you don’t agree with our value, you can have the home assessed by a licensed appraiser instead.
We’ll update you on the value of the home periodically so you know how much your Shared Equity is worth. Plus you can request a valuation update whenever you’d like.
What happens if I don’t want to buy?
Our program works best for customers who intend to purchase their home, but you're never locked in.
If you’d rather not purchase, we’ll help you find a new home to rollover with GoodRoots, or you can simply cash out your Shared Equity (at a discount) and walk away, with zero impact on your credit for canceling the agreement.
Can I build Shared Equity faster?
Of course! You can purchase even more Shared Equity Rights whenever you’d like. The more Shared Equity you own, the more you’ll benefit from home price appreciation and the faster you’ll qualify for a great mortgage.
Customers can purchase Shared Equity Rights up to 20% of the home’s value. After that, we’ll remove the Shared Equity payments from your monthly bill so your housing costs will go down dramatically. This can be a fantastic option to reduce your monthly costs without being forced to buy right away.
Agents
Do I need to work with a real estate agent?
Yes, we highly recommend you work with a buyer's agent who can help you find your home with GoodRoots.
For pre-approved customers who don't already have an agent, GoodRoots will pair you with a vetted professional in our network.
I already have a real estate agent. Can I work with them?
Absolutely. Please ask your agent to create a profile with GoodRoots and complete our quick training program.
How does my agent get paid?
Your agent earns the same commission they’d earn if you bought your home with them directly, minus a referral fee. Our arrangement with your agent is always disclosed to you before you choose to move forward with GoodRoots®.
How can my agent get certified by GoodRoots®?
Agents that want to work with GoodRoots® should create a profile to access our free, easy-to-use training materials. Once they’ve completed the training, they’ll be ready to guide you through our program!
Certified agents in our network may also receive lead referrals from pre-qualified customers.
