General Information

General Information

We’re here to help

Whether you’re an interested employer or an inquisitive participant, as you learn more about what our program has to offer, chances are you may have questions or come across RMHF-specific terminology that requires a little explanation. Hopefully this helps.

Frequently Asked Questions (FAQs)

The RMHF program is built around the goal of providing a pathway to homeownership for those having trouble with down payments or the monthly cost of housing.

Implementing the RMHF program requires nothing more than the time and input of the employer during the design phase. This is done to gain a better understanding of what the employer seeks to accomplish. After that, RHMF handles the full administration of the program and provides quarterly reporting to investors/management.

RHMF provides [employee] participants with a budget and allows them to shop around to find a home that best fits their personal needs. This can include single family homes, townhomes, and duplexes. Final selections are then approved by RHMF to ensure the home meets program goals.

RHMF works closely with employers to establish program goals and guidelines, including geographical targets for home purchases. RMHF has no preference for one area over another. If the employer has no preference, then there are no geographical restrictions. Homes are selected by [employee] participants and subject to approval by RMHF.

The RMHF program is designed as an employer benefit for attracting and retaining employees. The low monthly cost of housing, no down payment, and monthly payment stability features are benefits made possible by the employer/employee relationship. If a participant loses or voluntarily terminates employment, they are not required to immediately move out of the home. RMHF works with the employer to design how long the housing benefits last post-employment (similar to COBRA benefits for health insurance). At a minimum, the interest rate applied to monthly payments increases to reflect the loss of the employer benefit. Former employees may be permitted to remain in the home during a transition period or indefinitely, depending on how the employer chooses to customize the program.

The ideal application of the program includes using payroll deduct for monthly payments similar to other employee benefits. In the event of extended leave, RMHF assumes the responsibility to collect monthly payments from participants. The program includes a savings account, managed by RMHF, which provides stability of housing payments during these periods.

RMHF works with employee participants to help them choose a home that will provide long-term housing and cost stability. We seek to avoid future large expenses through a careful/thorough selection process. In the event of an unforeseen large expense, the employee participants may use funds from the custodial savings account included in the program to pay for the repairs. This account holds six months of monthly payments in reserve.

As owner of the property, RMHF has the responsibility to provide and annually renew homeowners insurance policies and pay property taxes. These costs are built into the employee participant’s monthly payments. Participants are also required to carry renters insurance.

Participants may not rent out or otherwise lease out the home.

RMHF works with employers to design program goals that often include employee rewards, recruitment, and retention. Once we know that the employer is looking to accomplish, and who they want to benefit, we help introduce the opportunity to employees and answer questions. We also provide a 5-minute online application for those who wish to learn more before taking them individually through the full application process.

Helpful Vocabulary and Terminology

Home Equity

A good way to think about equity is that it represents stored value.

Example: Cindy bought a house that is currently worth $350,000, but she still owes $300,000. So, she has $50,000 in home equity—and it will grow every time a mortgage payment is made.

Appreciation Equity

Most homes increase in value over time. This increase is known as appreciation. The amount of increased value that is stored in a home is known as appreciation equity.

Example: When Cindy entered the program, the home was purchased at $300,000. Cindy’s home is now worth $350,000. To determine the appreciation equity, subtract the purchase price from the current value ($350,000 – $300,000 = $50,000). There is currently $50,000 of appreciation equity of the home.

Equity Split

The share of appreciation equity assigned to participants.

As your RMHF home increases in value over time, you share that appreciation equity with RMHF. The amount you share depends on how your individual program has been designed.

50/50 Equity Split

This is our typical equity split. It means the participant is assigned 50% of the appreciation equity in the home.

Example: When Cindy entered the program, the home was purchased for $300,000. Cindy’s home is now worth $350,000. The appreciation equity stored in the home is $50,000 ($350,000 – $300,000 = $50,000). If Cindy is on a 50/50 equity split, the amount of appreciation equity assigned to her is 50% of $50,000, or $25,000.

A good way to think about equity is that it represents stored value.

Example: Cindy bought a house that is currently worth $350,000, but she still owes $300,000. So, she has $50,000 in home equity—and it will grow every time a mortgage payment is made.

Most homes increase in value over time. This increase is known as appreciation. The amount of increased value that is stored in a home is known as appreciation equity.

Example: When Cindy entered the program, the home was purchased at $300,000. Cindy’s home is now worth $350,000. To determine the appreciation equity, subtract the purchase price from the current value ($350,000 – $300,000 = $50,000). There is currently $50,000 of appreciation equity of the home.

The share of appreciation equity assigned to participants.

As your RMHF home increases in value over time, you share that appreciation equity with RMHF. The amount you share depends on how your individual program has been designed.

This is our typical equity split. It means the participant is assigned 50% of the appreciation equity in the home.

Example: When Cindy entered the program, the home was purchased for $300,000. Cindy’s home is now worth $350,000. The appreciation equity stored in the home is $50,000 ($350,000 – $300,000 = $50,000). If Cindy is on a 50/50 equity split, the amount of appreciation equity assigned to her is 50% of $50,000, or $25,000.

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