Homeownership has long been touted as the American dream. But rising rates of mortgage debt, student loan debt, or otherwise are making the pursuit of homeownership a nightmare. Debt burdened individuals or those with inconsistent or tight cash flow can not only struggle to get credit loan approval when buying a home but also struggle to satisfy monthly mortgage payments even after purchase.
Patch Homes is hoping to keep the proverbial American dream alive. Patch looks to provide homeowners with cash flow and liquidity by allowing them to monetize their homes without taking on debt, interest or burdensome monthly payments.
Today, Patch took another big step in making its vision a far-reaching reality. The company has announced it’s raised a $5 million Series A round led by Union Square Ventures (USV) with participation by from Tribe Capital and previous investors Techstars Ventures, Breega Capital, and Greg Schroy.
Patch Home looks to partner with homeowners by investing up to $250,000 (with an average investment of ~$100,000) for an equity stake in the home’s value, generally in the 5% to 20% range. Homeowners aren’t subject to any interest or recurring payments and have ten years to …read more
Source:: TechCrunch – Startups