What if I want Landed's down payment program to contribute less than 10% down? How does it impact Landed’s appreciation share?

You do not need to use a full 10% down payment contribution from Landed's down payment program.

In some instances, our customers are able to contribute more than 10% towards the down payment themselves, meaning they require a smaller contribution from Landed's down payment program in order to reach a 20% down payment.

Our goal is to be as flexible as possible. Every home purchase is different, and you may not need the maximum down payment assistance. We've supported transactions in which we’ve contributed 5% down or 8% down.

What happens when Landed’s assistance is less than 10%?

When we contribute less than 10% down, the future appreciation/depreciation sharing also changes proportionally. 

In other words, for every 1% Landed contributes, Landed shares in 2.5% of the appreciation (or depreciation, if any). See the below scenario for an example calculation.

Scenario A

Let's say you contribute 15% towards the down payment. That means you’ll only need Landed to contribute 5% for you to reach a total 20% down payment. In this scenario, Landed's down payment program would share in 12.5% of the future change in value.

Here’s the math:

Landed’s contribution (5%) X Landed’s share of the future value (2.5%) = 12.5%

Scenario B

The same math applies if Landed were to contribute 15% towards the down payment and you were to contribute 5%. In this scenario, Landed’s down payment program would share in 37.5% of the future change in value.

Here’s the math:

Landed’s contribution (15%) X Landed’s share of the future value (2.5%) = 37.5%