How Homium Works

Homium makes home equity accessible for homeowners and creates a new institutional asset class that permanently changes the way homes are financed.

Investors

Learn more about adding Homium to your investment portfolio.

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Originators

See how a Homium loan may be the perfect fit for your clients.

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Homium unlocks untapped equity for a homeowner, without requiring monthly payments.

Homium’s shared appreciation loan reserves a fixed percentage of a home's appreciation instead of charging interest.

Homeowners effectively “sell” a portion of their home’s equity at today’s price, and repay at tomorrow's.

Homeowner takes out a shared appreciation loan

Homeowner takes out a Shared Appreciation Loan against a portion of their home equity, which must be repaid upon sale of the house or cash out refinance of the first mortgage.

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Homium tokens are issued

Institutional investors purchase tokenized shares which are backed by pooled Shared Appreciation loans.
Each pool is backed by homes in the United States
Token ownership is recorded and maintained by an SEC registered transfer agent.
When loans repay, all proceeds are used to either redeem tokens at ħ or reinvest in new shared appreciation loans.

Homium shares can be traded between peer institutions

Homium shares are issued to Qualified Institutional Buyers (QIBs) only and are tradeable among QIBs under rule 144A in secondary market transactions. As digital securities, they should benefit from being easily transferable with potential T-0 atomic settlement. Homium will also offer investor redemption opportunities through quarterly tender offers with the cash generated by loan payoffs in the pool.

How Does Homium Appreciate in Value?

An animation of a home's value rising along with the value of Homium.

When a Homium loan is repaid, any increase in the home’s value increases the payoff amount due upon sale or refinance.

Homium uses all loan proceeds to purchase and retire outstanding tokens in a quarterly tender offer at the published rate of exchange, or to reinvest cash not claimed by investors in the tender to make new loans.

Homium’s rate of exchange
is called ‘ħ’

Homium’s rate of exchange is called ‘ħ’

ħ changes with the value of the homes secured by notes in Homium’s portfolio. These changes are marked to market monthly using publicly available home indices and finalized with the realized gains of matured notes. ħ sets the ratio of tokens-to-dollars whenever new tokens are minted, or when outstanding tokens are redeemed for cash.

Homium issues and redeems tokens at this rate via its state-of-the-art loan origination and real-time securitization platform.

An animation showing how equity from many homes makes up the underlying value of Homium.