In this week’s spotlight, we present before you Roam, a real estate platform for affordable buying. Finding the perfect homes at an unbelievably low rate is the promise of Roam, a platform connecting homeowners and buyers. Home buyers are in for an incredible surprise where they will be able to buy properties at interest rates as low as they were nearly more than a decade back.
Buying a home at a mortgage of 2% could have been someone’s wildest dream until they discovered Roam. This real estate platform, with a concept called assumable mortgages, makes it possible. So, what are assumable loans that make this whole deal of purchasing homes unique?
It is a type of home loan that lets homebuyers take over the existing mortgage terms from the seller. This can cut down the monthly payments by half and make home ownership two times more affordable. When purchasing a home has become unimaginable due to skyrocketing rates, this comes as a great relief for buyers. Any buyer who qualifies for an FHA loan is also eligible for an assumable mortgage.
Roam connects homebuyers who are interested in taking over mortgages at low rates for their new home purchase, with homeowners. With this, they envision making home ownership affordable to 1 million Americans by 2030. With just 1% of closing costs as a fee from buyers, Roam facilitates the home-buying process. The platform is free for sellers and listing agents.
The process also brings about benefits for sellers. They get an opportunity to close more sales much faster than before. A seller can find five times more buyers with assumable mortgages at low rates. The buyer assumes the mortgage, and the seller’s equity is cashed 100%.
Buying through Roam involves three steps:
The loan assumption process is completely different from a regular sale. Here, the buyer purchases the property at the current rates with a new mortgage taken in the buyer’s name and pays the homeowner. Ultimately, the balance amount after the sellers offset their mortgage is left with them.
In the case of mortgage assumption, for example, if a buyer buys a property worth $1,000,000 with a mortgage of $500,000, they take over the mortgage (rates as low as 2%) and need to pay the balance $500,000 either through a second mortgage (going rates) or cash. Roam also assists buyers in finding lenders that offer second loans at affordable rates of interest.
Buyers
Sellers
Roam maintains level of transparency in operations by keeping homeowners and buyers updated on the status. This is done through an online dashboard that offers timely information.
Nearly six out of every seven U.S. homeowners with mortgages have an interest rate below the current rates, and this intrigues one to think about mortgage assumptions. There are buyers who are discouraged from purchasing properties due to spiralling rates, but this is because many aren’t aware of loan assumptions.
Roam’s founder, Rounaq Singh, envisions reaching these buyers through advertisements featuring homes attached to attractive assumable mortgages. Initially proposed in Georgia, Colorado, Texas, Arizona, and Florida, this real estate start-up, wishes to expand it further.
Bridging the gap between buyers and sellers, this concept is bound to be encouraging to many home buyers in the near future.
By Proptechbuzz
By Ravi Kumar
