The fund helps borrowers refinance out of predatory non-mortgage home loans that charge high interest rates and prevent borrowers from building ownership. The strategy acquires pools of these loans and converts them into traditional mortgages or more equitable contracts, enabling borrowers to build equity as homeowners. The model supports households in transitioning to fairer lending terms and a path to long-term homeownership.
The fund focuses on acquiring distressed or predatory homeowner debt—such as contracts for deed and other seller-financed arrangements—that are often concentrated in underserved communities and neighborhoods with limited access to traditional mortgage credit. By restructuring these obligations into fairer, mortgage-like products, the fund provides households with stable monthly payments, clearer ownership rights, and the opportunity to build equity over time rather than remain in extractive financial arrangements.
This strategy is designed to prevent displacement while converting exploitative lending into sustainable homeownership opportunities. While the structure requires repayment, the impact lies in transforming households’ long-term financial trajectories: borrowers move from insecure tenure and high-cost debt to stable ownership and asset building. This model demonstrates a scalable approach to addressing predatory housing finance and supporting neighborhood stability in markets historically excluded from conventional mortgage systems.