Earlier this month, homeownership investment company Landed announced that it scored a capital infusion that would fuel its core mission to help more educators afford homes near their work.
It appears the startup was quick to put the funds into action, announcing Tuesday that it has partnered with the Hawaii Executive Conference to aid its expansion in Hawaii.
Landed offers school teachers in grades K-12 and college professors and staff the opportunity to take on an investor to afford a down payment.
It pays half of the standard down payment up to $120,000, realizing a return on its investment by taking 25% of the appreciation gain when the property is sold. If the home doesn’t appreciate, Landed shoulders the loss.
The company has worked closely with Fannie Mae to help educators access a broader array of competitive loan products, and it also offers teachers financial coaching and home buying guidance.
It currently operates in Colorado, California, Washington and now, Hawaii, with plans for expansion into Austin and Boston later this year.
The companies said their partnership is part of the Hawaii Executive Conference’s commitment to addressing pressing concerns in the state.
“As the cost of housing in Hawaii continues to rise, too many of our educators are finding it harder to afford homes and we have to find a way to allow them to live in the communities that they serve,” said HEC Chairman Duane Kurisu. “Challenges like these can only be tackled together.”
Landed’s concept has also resonated with influencers in the San Francisco area.
The company launched in 2015 with capital from startup seed-funder Y Combinator, affordable housing policy experts, union organizers, philanthropists and Stanford economists, according to Landed’s site.
In 2017, the Chan Zuckerberg Initiative hopped on board, pledging $5 million in funding to support the startup’s efforts to help teachers afford homes in the Bay Area.
And earlier this month, the company announced that it raised $7.5 million in a Series A funding round led by Initialized Capital, which also invested in Reddit and iBuying company Opendoor.
Landed Co-Founder Alex Lofton said the company is eager to help educators across the Hawaii.
“As the son of a school teacher and a social worker in the Seattle area, I know firsthand the struggles that many families go through to build financial security in expensive communities,” Lofton said. “Landed hopes to be a support system to help all educators feel more secure in their financial future.”
The company said homebuyers can use its program in conjunction with a mortgage from Landed’s partner lenders, which include First Hawaiian Bank, Bank of Hawaii, American Savings Bank, and Central Pacific Bank.