The Better Way
To Buy A Home
Start your home buying journey with a ground lease and more cash in your pocket.
Start your home buying journey with a ground lease and more cash in your pocket.
Worried about the rising cost of homeownership? Here's some good news: Groundly has created a Better Way to Buy a Home by separating the home from the land it sits on through a modern ground lease, reducing the upfront cost. On average, Groundly customers can save up to 30% on their down payment and 7% on their initial monthly payment. How you use the extra cash is up to you.
Traditional mortgages require homebuyers to take a loan out for the home and the land that it sits on.
Groundly purchases the land underneath your home and leases it back to you at a low monthly rate, so that you only need a mortgage on the home itself.
Lower purchase price for the same home
Lower down payment
Lower monthly payments
Up to
on down payments
Up to
on inital monthly payment
With a Groundly Lease, the homeowner purchases and owns the home, while Groundly purchases and owns the land on which the home sits and leases the land to the homeowner for 99 years.
Advantages of a Groundly Lease include lower down payments (up to 30% reduction) and lower initial monthly costs for homebuyers. This allows you to purchase a more expensive home than you might otherwise be able to afford with a traditional mortgage approach.
Yes, land ownership passes to the homeowner after 55 years for $1.
Yes, just like any home, you may obtain a mortgage and refinance at any time. The Groundly Lease complies with official guidance issued by both Fannie Mae and Freddie Mac so you should have a wide choice of lenders.
No! Ground leases historically have been common in commercial real estate, government entities, for religious institutions, and universities, providing a less expensive alternative to traditional mortgages.
You will receive a ground rent schedule at closing that will never change. Ground rent payments increase by 2% per year. Your initial ground rent will be considerably lower than a traditional mortgage payment.
As the homeowner, you are responsible for all expenses associated with the property, including payment of all property taxes, utility charges, homeowner association fees and assessments, and homeowners insurance premiums during the term of the Groundly Lease.
Yes. With the Groundly Lease the homeowner is free to sell their home at any time, just as with a traditional home purchase. As the homeowner, you will get all of the proceeds of the sale after payment of your mortgage and other standard closing expenses. Groundly does not share in your sale proceeds. Once sold, you have no obligations under the Groundly Lease and the purchaser will then enjoy the right to own the land after the 55th lease year for $1.
Yes, as the homeowner you are free to improve, renovate, paint, install a pool or otherwise modify your property just the same as you would under traditional homeownership with a residential mortgage. Groundly will not make any changes or modifications to the land or the home during the term of the Groundly Lease.
Groundly is on a mission to make the American Dream of homeownership more affordable. With interest rates soaring and home supply lower than ever a Groundly Lease can be the bridge to the home so many people and families need and deserve. Groundly believes a Groundly Lease is a better way to buy a home.
| Traditional Ownership |
Groundly Lease |
Savings | |
|---|---|---|---|
| Upfront Cost | |||
| Purchase Price | $500,000 | $350,000 | $150,000 |
| Mortgage | $400,000 | $280,000 | $120,000 |
| Down Payment Amount (20%) | $100,000 | $70,000 | $30,000 |
| Monthly Cost | |||
| Ground Rent1 | $0 | $625 | ($625) |
| Mortgage (7.5% Rate)2 | $2,822 | $1,976 | $847 |
| Total Monthly Cost | $2,822 | $2,601 | $222 |
1Initial ground rent equal to 5% of land price.
2Based on a 30-year fixed rate mortgage with a 7.5% interest rate.
| Groundly | |
|---|---|
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| Month | Minimum Total Monthly Payment |
Maximum Total Monthly Payment |
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