Question 1

How does Crib Equity work?

Accepted Answer

Crib Equity helps make homeownership more affordable and accessible by contributing to your down payment. We can match the funds you have for a down payment, and in some cases even a bit more. This allows you to purchase with a lower down payment, lower your monthly mortgage payments and even avoid the need for mortgage insurance. It adds up to helping you afford more home for less.

Because our contribution is an investment in your home—not a loan—you won’t have any additional debt or monthly payments.

When you decide to sell or repurchase our share, the home’s equity is split based on the percentages everyone invested at purchase. In a way, it’s like buying a home that helps pay for itself.

Question 2

What are the benefits of buying with Crib Equity?

Accepted Answer

Crib Equity offers several unique advantages to homebuyers, tailored to meet individual needs. Some of these key benefits include:

Achieving Homeownership Sooner
With Crib Equity contributing to your down payment, you can become a homeowner faster. This allows you to start building equity and investing in your future, instead of continuing to pay rent. With historical home price appreciation, achieving your down payment savings and buying in half the time, results in almost 250% greater home equity.

Lower Monthly Mortgage Costs
Crib Equity reduces your loan amount and monthly payments. When helping you to reach a 20% down payment, we cal also eliminate the need for mortgage insurance. Combined, this can lower your monthly payments by as much as 25%, freeing up more budget for other financial goals.

Increase Your Buying Power
Crib Equity's co-investment reduces borrowing costs, which can expand your overall budget. This enables you to afford a more expensive home, while keeping monthly payments manageable for your budget.

Diversify Your Investments
Even if you have sufficient down payment funds, it may not makes sense to tie up all your cash or investments in one asset. Crib Equity allows you to retain cash and keep a diversified investment portfolio, giving you financial flexibility while still enjoying the benefits of homeownership.

Question 3

How does Crib Equity determine ownership share in the home?

Accepted Answer

Ownership share is determined at the time of purchase, based on each party's contribution to the total down payment and approved closing costs. The share of the home's equity for both you and the investor is directly in proportion to the total down payment and closing costs contributed by each party.

You are able to choose the amount of Crib Equity's investment, up to the limit stated in your commitment letter. To help you explore different options, you can use our pricing calculator to see how Crib Equity's investment impacts the home price you can afford, your monthly payments, and your potential returns when you sell.

Question 4

Who is eligible for Crib Equity's programs?

Accepted Answer

Buyers who are pre-approved for a mortgage by one of our lending partners, or another accredited lender, are eligible for Crib Equity's home buyer program. We support buyers nationwide and are happy to help determine if our program is a good fit for your home purchase.

Question 5

Are there income limits to use Crib Equity?

Accepted Answer

No, there are no income limits to participate in Crib Equity's program. Homeownership challenges exist across both high and low-cost markets, so we do not set minimum or maximum income requirements. Any homebuyer purchasing a primary residence or personal use property in one of our active markets can apply to partner with Crib Equity.

Question 6

How much will Crib Equity co-invest with me?

Accepted Answer

Crib Equity can contribute up to 50% of your total down payment and approved closing costs, typically covering up to 30% of the home's total value. There’s no specific limit on the home’s purchase price or our contribution. This co-investment helps you afford the home you want, avoid mortgage insurance, and lower your monthly payments.

Question 7

Can I work with my own real estate agent?

Accepted Answer

Yes! You’re welcome to use your own real estate agent. We also have a preferred network of experienced agents familiar with Crib Equity's program if you’d like a recommendation.

If you choose to work with your own agent, simply introduce them to us so we can ensure they’re ready to submit offers using Crib Equity’s co-investment program.

Question 8

Can I use my own mortgage lender?

Accepted Answer

Possibly. Crib Equity requires your lender to approve us as a co-owner in your home, and while we can’t guarantee every lender will meet our program’s criteria, we’re happy to connect with your lender to explore compatibility.

To ensure a smooth process, we also offer a network of approved lending partners who are familiar with Crib Equity. They can provide you with competitive rates and help structure a more attractive offer that works seamlessly with our co-investment program.

Question 9

How does Crib Equity make money?

Accepted Answer

Crib Equity charges a program administration fee that covers the administration and ongoing management of your home purchase agreement. To help reduce the upfront costs of homeownership, we offer flexible payment options:

Deferred payment: Choose to defer payment of our program fee until selling your home or purchasing our portion of the equity
Upfront payment: Pay at closing of your purchase and receive a discount on the program fee

The fee is always calculated based on your original purchase price, not the future value of your home. So even if you defer payment, the amount won't increase over time.

Additionally, many of our real estate and lending partners offer credits that can help offset some or all of the fee, making the program even more accessible.

Question 10

Where is Crib Equity currently available?

Accepted Answer

Crib Equity is available nationwide and supports homebuyers in all 50 states. While the program is broadly accessible, availability may vary based on your specific location, lender, or transaction details. If you’re unsure whether your home purchase qualifies, please reach out. We’re happy to help!

Question 11

Does the home I purchase with Crib Equity need to be my primary residence?

Accepted Answer

Not necessarily. The property must be for personal use, though, and not for rental purposes.

In most cases, we can co-invest in second homes. We understand that co-owning with Crib Equity can be more appealing than traditional co-buying arrangements where multiple owners share rights to the property. Feel free to contact us to explore how we can assist with your specific needs.

Question 12

How and when do I repay Crib Equity?

Accepted Answer

There are no monthly costs or payments required for Crib Equity’s contribution, meaning you can enjoy the benefits of co-investment without the burden of additional loan repayments. This allows you to save more each month, maintain flexibility in your budget, and focus on building equity in your home without the pressure of managing more debt.

You’ll repay Crib Equity’s co-investment when you choose to sell, refinance, or repurchase our share of the home’s equity. The timing of this repayment is entirely flexible, and it's up to you to decide—up until the expiration of the typical 10-year co-ownership agreement.

Question 13

What homeowner responsibilities do I have with Crib Equity?

Accepted Answer

As the resident co-owner, you’ll be responsible for all typical homeowner expenses, including the mortgage, property taxes, homeowners insurance, and routine maintenance. This also means you have the freedom to manage and update the home as desired, allowing you full flexibility to make it your own while living in it.

Question 14

Can I make changes or renovations to my home if I purchase with Crib Equity?

Accepted Answer

Absolutely! As the owner living in the home, you have full flexibility to make updates or renovations, just as you would with sole ownership. For improvements that significantly increase the home's value, you can even request an adjustment to the equity share based on the new value created by those changes.

Question 15

Can I rent out my home?

Accepted Answer

Yes, but only for short-term rentals, such as while you're away on vacation. However, you’ll need to ensure you have notified Crib Equity and carry adequate and appropriate homeowner’s insurance for the rental use.

Long-term rentals or lease agreements are not permitted under our program.

Question 16

How do I sell my home with Crib Equity?

Accepted Answer

When you're ready to sell, simply let us know. Crib Equity will help you maximize your home's value and minimize transaction costs. Our network of partners can assist in preparing your home for sale, ensuring you get the best price with a smooth transaction.

You’re in control of the sale—whether it’s the offer price, timing, or other factors. And, as a co-owner, the investor shares in the agent commission and listing fees. After covering selling costs and repaying the mortgage, the remaining proceeds are divided according to your ownership percentages.

Question 17

Can I refinance my home?

Accepted Answer

Yes, you can refinance at any time. The only requirements are that the new lender acknowledges Crib Equity's co-investment terms, and no additional principal is added unless you're repaying part of Crib Equity's contribution or you've reached an agreement with the investor to adjust the ownership share. This ensures that your equity distribution remains in line with the original agreement.

Frequently asked questions