A new home equity protection product is being launched for new and existing homeowners.
New Hampshire headquartered fintech startup Home Diversification Corp. says that its signature product will transform homeownership by delivering peace of mind to homeowners.
The firm’s signature product - the Home Diversification Agreement or HAD - is a mortgage enhancement product that is a financial contract that can be purchased at mortgage origination or any time after by existing homeowners.
The instrument is recorded as a junior lien on the property (not a mortgage) and qualification is quick and differs from PMI in that it helps ensure the value of the property itself versus the mortgage, benefiting homeowners directly. At a cost of just $19 a month for the typical $225k home, it delivers inexpensive protection unavailable elsewhere.
"The decision to purchase a home is one of the biggest and most nerve-racking for anyone. Even more today, given the still-prevalent memories of the 2008 to 2012 meltdown period," states Marc Biron, Home Diversification Corp founder and CEO. "Unfortunately, there's no crystal ball to inform them what lies ahead. An HDA allows them to make that purchase with peace of mind. Going forward, we believe that just as consumers purchase home insurance to ensure against fire and other perils, they will obtain an HDA to protect the precious equity they've built in the homes."
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