Proptech Highlight: Foyer (Transmission #332)

It’s no secret—the real challenge to attaining homeownership isn’t the monthly payment. It’s the down payment.

Countless would-be buyers could easily cover a mortgage, especially with rates where they have been the past decade. But when you ask if they’ve got $50,000 or $100,000 or $200,000 sitting in cash for a down payment, the dream of homeownership slips away.

Despite endless mortgage and marketplace innovations, we still haven’t solved the hardest part: helping people build that first pile of cash.

TRADITIONAL SAVINGS PATHS
Paths already exist to help parents and kids through the most commonplace obstacles. The 529 plan—tax-deferred contributions and tax-free withdrawals for education expenses—is ideal if your goal is college. UGMA accounts work for parents who want flexibility, but lack the tax benefits. I like the Junior Roth IRAs by companies like FutureMoney, which enable parents to help kids compound wealth early.

But wealth-building for our children shouldn’t end there. None of these build real stability and generational wealth like buying a home. Wealth in my family began with my grandpa’s real estate and land investments decades ago. That foundation changed everything for the next two generations. Without it, we’d be in a completely different financial position.

Which makes me wonder: Why are families left with ad hoc solutions and no tax-advantaged savings vehicles for the single biggest purchase of their lives? For the nest egg that will offer peace of mind in retirement?

THE 401K OF HOMEOWNERSHIP
Enter Foyer, a fintech with a mission to save the dream of homeownership by tackling the down payment problem directly.

Think of it as a 401k for buying a house.