At Landed, we believe in being as transparent with you as possible. Given the changing shape of the housing market, we feel it's important to be open about how these conditions are impacting our products and the ways we support our incredible community.
What customers need to know
As always, our priority remains helping essential workers buy homes even in an uncertain market, and using our variety of offerings to provide ongoing support. With this in mind, we're making a few updates to our current product for new and renewing customers.
Recently, we increased the Landed equity share to 3.3% for every 1% we contribute.
However, given higher than expected demand for down payment support, coupled with continued investor uncertainty about the future of the U.S. housing market, we have now made the difficult decision to implement a down payment waitlist for all Landed metro areas.What this means
If you are a new or renewing Landed customer looking to use the down payment program to buy a home, you will be placed on a waitlist, even if you currently have an unexpired Welcome Letter. Being added to our waitlist in no way obligates you to work with Landed, but it will ensure that we keep you up to date as down payment program funds become available in your area. Our goal is to get everyone off the waitlist as quickly as possible, but please note that if you enter into a contract on a home while waitlisted, you will not be eligible for down payment support.
We do not make these adjustments lightly — we understand the impact of these changes and wish to provide assurance that:
- We will honor our Welcome Letter terms for customers who are currently under contract or have an offer outstanding. However, in the event their contract falls through or is not accepted, we will be unable to provide down payment support until market conditions improve.
- For customers who are still in the homebuying process, we are ready to offer financial wellness coaching, home financing navigation, and expert market consultation. More on these solutions below.
- We recognize that the market will continue to evolve, and we are committed to adapting our business to continue helping essential professionals achieve homeownership through the ups and downs of the market.
Why we are doing this
Over the past few months, the housing market has been more volatile than it has been in decades. The result is that everyone who interacts with the real estate market — banks, investors, and homebuyers — is feeling cautious. And this directly impacts our down payment program.
Co-investing in homes with our customers requires capital, so we partner with impact and real estate investors to secure the funds we need. These investors (some of whom include our own customers via their retirement funds) require a reasonable return for the risk they are taking, and might at times decide to step back from making any investment at all. With higher interest rates and projections that home prices may fall, potentially dramatically in some metro areas, our investors are now facing significantly more risk than they were just a few months ago, and so have decided to pause investments for the time being.
How Landed can still support you
While I know this is disappointing news, our down payment program is just one of the many services we offer. Starting today, Landed’s homebuying coaches, along with our network of trusted real estate agents and lenders, have even more ways to help essential professionals find and buy their dream homes:
- Financial Wellness Coaching: Landed helps each individual assess their personal “Homebuying Health” no matter where they are in their homeownership journey. We offer tools and resources, including access to free 1:1 financial coaching, to help them improve their credit, pay down debt, build their savings, or all of the above.
- Home Financing Navigation: Landed can help homebuyers find and qualify for programs that improve affordability — from state and local down payment assistance programs, to low or no down payment loans and products being designed as part of the Community Reinvestment Act — and connect them with knowledgeable, motivated agents and lenders who can put these programs into action.
- Expert Market Consultation: Landed partners with real estate agents who are not only experts in their local markets, but who also understand the unique challenges faced by essential professionals. These Landed Partner Agents can conduct a tailored Market Assessment to help your employees understand which neighborhoods and homes best meet their needs.
All of Landed’s services are still available at no charge and with the same care and expertise homebuyers have come to know and expect from Landed.
Summary
The market may be uncertain, but we’re not — we’re still just as committed to supporting essential professionals on their homeownership journey. While we’re currently updating our program terms, we’re also focused on finding the best way forward for each homebuyer we work with and continuing to help uplift those who uplift us. Thank you for continuing on this journey with us and trusting us to be your partner in finding your dream home.
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Frequently asked questions (FAQs)
Q: Why am I on a waitlist?
A: Right now, we have more demand for our down payment program than our investors can support, particularly in markets that experts believe are likely to experience the most price volatility. We plan to return to business as usual as soon as we can and will let you know via email as soon as down payment program funds become available in your area.
Q: When will the waitlists end?
A: Our goal is to get everyone off the waitlist as soon as possible, but we currently do not have an estimated waiting time. It is difficult to accurately predict how markets will change over time, especially during periods of high uncertainty. We want to be confident in our readiness to provide more down payment funds before we reinstate the program so we can provide uninterrupted service.
Q: If I get on the waitlist, am I obligated to partner with Landed when it's my turn?
A: No, there is no obligation to use Landed's down payment program, or any other Landed services, at any point in time.
Q: How will I know that I am taken off of the waitlist and able to move forward with the down payment program?
A: You will be notified by email when Landed is able to offer you access to our down payment program. We will also update our Availability page when metro areas are entirely removed from the waitlist process.
Q: What happens if I want to put an offer on a house while I'm on the waitlist?
A: In that case, down payment funds would not be available. Still, you are free to purchase without funds from the down payment program at any time with the support of your Landed team.
Q: What if I have an active Welcome Letter? Do I still qualify for down payment program support even if I'm on the waitlist?
A: We are only able to honor Welcome Letter terms for customers who are currently under contract or had an offer outstanding before 9/8/22. However, in the event their contract falls through or is not accepted, we will be unable to provide down payment support until market conditions improve. All customers who do not have an offer outstanding or accepted will be placed on the down payment program waitlist as of 9/8/22.
Q: If I buy a home while I'm on the waitlist, can I retroactively co-invest with Landed when I'm off the waitlist?
A: Unfortunately not. We are not currently able to apply down payment funds toward a refinance and can only apply the down payment program to a new home purchase.
Q: Can I still use a Landed Partner Agent even if I'm on the waitlist?
A: Yes! If you've already been introduced to a Landed Partner Agent, you may continue to work with them for your home purchase. If you are early in your home search and would like to be introduced to a Landed Partner Agent, email us at customer@landed.com, and we'll connect you with an agent in your area.
Q: Can I still use Landed Home Loans or another participating lender for my mortgage if I'm on the waitlist?
A: Yes! If you've already been introduced to a loan officer at Landed Home Loans or another participating lender, you may continue to work with them for your home purchase. If you are early in your home search and would like to be introduced, email us at customer@landed.com, and we'll introduce you.
Q: Can I use a Landed homebuying coach if I'm on the waitlist?
A: Yes! Even without the down payment program, we're happy to provide access to our coaches to support you in the homebuying process. Sign up or reach out to a Landed representative to learn more.
Q: How can I learn more about Landed’s new services?
A: We will be sharing more details with existing Landed customers over the next few weeks. If you have any questions in the meantime, contact a Landed representative or email us at customer@landed.com to learn more.
Q: What will happen to existing homeowners? Will this change affect their ability to exit their partnership with Landed?
A: Product changes have no effect on homeowners who are currently in partnership with Landed. Those homeowners are still eligible for the same exit options at the same terms outlined in their Landed Option contract. If you have any questions, you can email postpurchase@landed.com, copying veronica@landed.com.
Q: What happens if Landed goes out of business?
A: If you have purchased a home with Landed's down payment program, you will keep the same terms of your contract. Contact a Landed representative or email us at customer@landed.com to learn more.
Q: How should I think about a real estate market without access to Landed’s down payment program?
A: Today’s real estate environment is marked by rising interest rates and low inventory. Historically, higher interest rates have tended to lead to a reduction in home prices. However, low inventory may challenge that norm in today's housing market. We recommend connecting with your real estate agent to better understand what current market dynamics might mean for you.
Q: Given the volatile market, should I buy a home right now?
A: Every type of market creates opportunities and challenges for different types of buyers, and your decision should be informed by your personal situation. As a result of higher interest rates, home prices are already coming down in many areas for the first time in years. Sellers are now receiving fewer offers, which may create some opportunities to purchase a home with less competition. If you are financially able to support the higher monthly payments resulting from increased interest rates, Landed Partner Agents can help you navigate this new housing dynamic and negotiate on your behalf. Additionally, Landed provides homeowners with post-purchase support and provides options to manage your investment, including opportunities to refinance if rates come down.
