A Seattle-based startup called Loftium is proposing to help homebuyers with up to $50,000 in downpayment on a home, according to an article in City Lab. In exchange, Loftium requires the homeowner to list at least 1-bedroom of the house on Airbnb for 357-days a year over a period of 3-years. The Seattle-based startup gets two-thirds of the income from Airbnb rentals. If the room goes unoccupied, Loftium covers the revenue shortfall.
Loftium has partnered with a regional lender, Umpqua Bank, to serve as the mortgage lender. The startup received regulatory approval from Fannie Mae, which has been looking for solutions on how to qualify millennial borrowers for home loans.
Ending the arrangement early means the homeowner would be required to “pay their share of the nights remaining, plus 15 percent of that amount, within a week.”