Company Fronts Home Down Payment In Exchange For Renting Out Spare Rooms

September 21, 2017

Dreamstime

The most expensive item you'll ever purchase is your home and coming up with the down payment can be a difficult task.  However there is some help available.  Loftium is a startup company and it offers up to $50,000 you can use as a down payment for your house.  However there is one catch for this assistance, you would repay the loan by listing one or more of your bedrooms on Airbnb.  Loftium uses an algorithm to figure out how much value your spare room has and determine the amount of money it will give you for a down payment. In return, new homeowners agree to continuously list an extra bedroom on Airbnb for one to three years, sending about two-thirds of that rental income back to Loftium. While the service allows homebuyers a faster option to obtain a down payment it does have some drawbacks, besides hundreds strangers coming and going in your new home.  Homeowners get only 8 days of blockout days and many municipalities are in the process or have already set up regulations for those wishing to become an Airbnb home.  For now the service is only available in Seattle with plans to roll out to other major cities and eventually nationwide.

SOURCE: The Stranger

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