Better Way to Buy a Home

How it Works

Groundly is on a mission to make the American Dream of homeownership more affordable.

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 10%7% on their initial monthly payment. How you use the extra cash is up to you.

Traditional Mortgage

Traditional mortgages require homebuyers to take a loan out for the home and the land that it sits on.

Groundly

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.

A More Efficient Home Buying Experience

How You Save

Lower purchase price for the same home

Lower down payment

Lower monthly payments

Average Groundly Customer Savings

Up to

30%

on down payments

Up to

10%7%

on inital monthly payment

Reduce your down payment and monthly payments with a residential ground lease.

Frequently Asked Questions

Is a Groundly Lease right for me?

What is a Ground Lease?

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.

What are the advantages of a Groundly Lease vs. traditional home ownership?

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.

Will the homeowner ever own the land?

Yes, land ownership passes to the homeowner after 55 years for $1.

Can I obtain a mortgage on the property?

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.

Is this a new concept?

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.

How is the amount of my ground rent payment determined?

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.

Who covers expenses associated with the property?

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.

Can I sell my home?

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.

Can I make changes to the property, the home or any other improvements?

Yes, you are free to improve your property as you would be under traditional homeownership with a residential mortgage.

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.

Why is Groundly doing this?

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.

Better Way to Buy a Home

Reduce your down payment and monthly payments with a Groundly Lease

  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.

A More Efficient Home Buying Experience

  • Increased buying power—the same home for less money or more home within your budget
  • Reduce down payment
  • Lower monthly payments
Questions

Contact Us

Our Office
1114 6th Avenue
New York, NY 10036
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