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Landy Liu know how hard it is to save for a home .
While working at mortgage startup Better.com , he spent years dealing with first - household house emptor who felt overwhelmed when it do to stag for home . By the time it was his play in 2022 , mortgage rates had nearly double , and he recover himself in one of the most challenging home - buying environments in decades .
“ I put my purchase on hold and used my down payment to startFoyer , where I am a substance abuser alongside our members , ” he told TechCrunch .
Foyer is a program that help consumers save for down payments , essentially act as a “ 401(k ) for homeownership , ” Liu said . He noted that specialized saving accounts and apps exist these 24-hour interval for about every big milepost , “ retirement , college tuition , even major wellness expenses , ” he say . Yet while there aregeneral option in the marketfor saving up for down payments , there is nothing akin to a platform focused on down payment for homes .
“ We believe homeownership is a vital part of the American dream and first - fourth dimension home buyers ask all the help they can get , ” he added .
On Foyer , users can make target savings goals and access personalized counselling on the best ways to save for a home , information about mortgage rate , and choosing a real the three estates firm . The company has a subscription mannequin , offering memberships to substance abuser seem for more support . It can unite drug user with real estate professionals and also let client to garner rewards that can be used toward a home plate purchase .
“ substantial the three estates table service provider spend billions per annum marketing to end substance abuser and now they are able-bodied to more directly support the financial wellness of aspiring home purchaser , ” Liu enjoin .
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purchase a home has become quite challenging in the past few years , with many shoot for home buyers finding themselves priced out of the marketplace completely , far away from hitting the milestones that generation previously strike at young ages . “ Saving for one ’s home require in effect preparation than ever , ” he allege .
Investors distinctly see some shine in the approximation . Today , Foyer is announce a $ 6.2 million seed round lead by Alpaca VC and Hometeam Ventures . Accion Venture Lab and Clocktower Ventures also participate in the round .
“ Homeownership plays a essential purpose in build up farseeing - condition fiscal security , particularly for underserved communities that have historically been shut out of wealth - building opportunities , ” Amee Parbhoo , a wield partner at Accion Venture Lab , differentiate TechCrunch .
David Goldberg , universal partner at Alpaca VC , said what drew the firm to Foyer was its “ reimagined approach to homeownership . ”
“ The combination of high - yield saving , education , and strategical partnership makes this a compelling bet on the future of home purchasing , ” he told TechCrunch .
Liu said he met the lead investors through common connection in the fintech and proptech space . For now , Liu said Foyer ’s chief competition is traditional savings report . Foyer launched last year in Michigan but has since spread throughout the nation , attracting more than 10,000 users , it said .
The fresh capital will help the company inflate and enhance product features .
“ Home affordability is in crisis and yet homeownership remains the greatest source of wealth creation for middle - class and minority families in the United States , ” Liu said . “ Foyer is providing a solution for first - clock time home buyers , a dedicated savings account statement that works for the next propagation of homeowners . ”
