Pathway Homes commits $750 million to increase access to homeownership

DALLAS, Feb. 3, 2022 /PRNewswire/ -- Today, Pathway Homes announced its new offerings for potential  homebuyers faced with rising home prices, constrained supply, and competitive local housing markets. Pathway's mission is to create more homeowners by providing new options for people who are currently being shut out of the market, configured to meet their needs at different points on the path to  ownership.

Pathway was formed by ResiLabs, a partnership designed to create new housing solutions that address  critical needs in the U.S. residential sector. ResiLabs was established by Regis Group and designed and  developed in collaboration with Invitation Homes Inc. (NYSE: INVH) and Fifth Wall. The senior leadership  team combines deep housing expertise with a track record of using technology to provide superior  outcomes for customers.

Pathway helps potential buyers identify their ideal home, purchases it on their behalf, and then provides  them with options to purchase the home in the future. At purchase, Pathway establishes rent and home  purchase option prices with fixed, below market annual increases, typically over a five-year term.  Pathway's offering is grounded in five main benefits for their customers: 

• Access: Pathway provides potential ownership options for those with decent jobs and incomes, but who would not otherwise be able to buy a home due to credit or savings.
• Fairness: Pathway works with our customers to ensure they will have the financial capacity to buy, provides financial counseling and support, offers transparent terms and doesn't impose financial penalties if the customer wants to leave the home.
• Flexibility: Customers can move into a home of their choice without a commitment that leaves them financially stretched and provides them options to purchase in the future.
• Stability: Fixed, agreed rental payments and purchase option prices provide customers with the ability to plan for the future.
• Quality: Each Pathway home will undergo an upfront investment, ensuring the home is in good condition and updated with energy-efficient smart home technologies, and all homes will benefit from Invitation Homes industry leading property management services

"With the launch of Pathway Homes, we are focused on helping underserved populations who have a  steady income, but still struggle to qualify for a conventional mortgage because of rising down payments  or high credit score requirements," said K.C. Cleary, Pathway Homes Co-Founder and Chief Strategy  Officer. "We offer unique programs designed to meet peoples' needs depending on their financial  situation and ownership timeline."

Pathway's three initial products have been purpose-built with fairness and security for its customers in  mind at all stages of their housing journey:

• HomeStart allows customers to move in with only a security deposit due upfront. The customer will rent with the option to buy the home when they're ready.
• Savings Match enables customers to build a down payment while they rent with a deposit of just 2.5 percent of the home's value. Pathway provides a fixed return on their deposit and a matching contribution over time – by year 5 the customer will have a full 5 percent toward their purchase of the home.
• Equity Builder provides customers with the ability to buy half of a home with 5 percent down while renting the remaining half. Equity Builder will be offered to customers beginning Q2 of this year.

When residents lease with Pathway, they will also benefit from full access to Invitation Homes' property  management services, including enrollment in their proactive maintenance program and 24/7 access to  their home maintenance teams. 

"As a single-family home rental provider, we focus on providing choice and flexibility in housing options,  and we are excited to now also support those who want to move into homeownership but may not have  the financial capacity to do so through traditional options," said Invitation Homes President and CEO,  Dallas Tanner. "We are pleased to be taking a leading role in removing barriers in our communities and  expanding access to homeownership."

Pathway Homes' solutions are currently available to consumers in the Atlanta and Phoenix metro areas  and will be available to consumers in Florida, North Carolina, Texas, California, Washington, Colorado  and Nevada, among other states, in the coming months. For more information on Pathway Homes or to  get pre-qualified, visit www.yourpathway.com. Be sure to stay up-to-date on all news on Instagram,  Facebook and LinkedIn.

About Regis Group
For more than 40 years, Regis has been a leading real estate private equity investor and operator with  more than $20 billion of investments across national real estate platforms in the U.S. and the U.K. Regis  has a demonstrated track record of success in identifying unmet customer needs and establishing  national, institutionally-managed platforms to provide high quality real estate solutions at scale. Regis  focuses on creating long-term, durable businesses and its proven strategies combine a deep customer  focus, operational expertise, technological innovation and capital markets experience. 

About Invitation Homes
Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle  demands by providing access to high-quality, updated homes with valued features such as close  proximity to jobs and access to good schools. The company's mission, "Together with you, we make a  house a home," reflects its commitment to providing homes where individuals and families can thrive  and high-touch service that continuously enhances residents' living experiences.

About Fifth Wall
Founded in 2016, Fifth Wall, a Certified B Corporation, is the largest venture capital firm focused on  technology-driven innovation for the global real estate industry. With approximately $3.0 billion in commitments and capital under management, Fifth Wall connects many of the world's largest owners  and operators of real estate with the entrepreneurs who are redefining the future of the Built World.  Fifth Wall is backed by a global mix of more than 90 strategic investors from more than 15 countries.  Fifth Wall believes this strategic corporate consortium represents one of the largest groups of potential  partners in the global Built World ecosystem, which can result in game-changing investments and  collaborations in promising portfolio companies in retail, residential and multi-family, commercial,  industrial, hospitality, and more. For more information about Fifth Wall, its partners, and portfolio, visit  www.fifthwall.com.

SOURCE Pathway Homes