The Better Way
To Buy A Home
Start your home buying journey with more cash in your pocket.
Start your home buying journey with 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, 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 agreement, 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 55 years.
Advantages of a Groundly agreement 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 alone while still enjoying all of the benefits of homeownership.
Yes, land ownership passes to the homeowner after 55 years of Groundly payments, similar to how a traditional mortgage loan is paid off at the end of the mortgage loan term.
Yes, just like any home, you may obtain a mortgage and refinance at any time. The Groundly agreement complies with official guidance issued by both Fannie Mae and Freddie Mac so you should have a wide choice of lenders.
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, and is not permitted to, make any changes or modifications to the land or the home during the term of the Groundly agreement.
You will receive a payment schedule at closing that will never change. Groundly payments increase by 2% per year, allowing you to lock in a payment schedule that is materially cheaper than historic inflation growth over the same period of time. Moreover, your initial payment will be considerably lower than a traditional mortgage payment.
As the homeowner, you are entitled to all of the benefits of homeownership and, likewise, 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 agreement.
Yes. With the Groundly agreement 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 agreement and land ownership passes to the homeowner after 55 years. Upon the sale, the buyer will step into your shoes under the Groundly agreement and take over the Groundly payments
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.
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 agreement can be the bridge to the home so many people and families need and deserve. We believe Groundly is a better way to buy a home.
| Traditional Ownership |
Groundly Agreement |
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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