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Acre Homes, a company that calls itself a consumer-led solution for homeownership, has totaled its fundraising to date to $10 million with the close of an Anthemis-led seed round, Inman learned in a December announcement.
The specific amount of the latest funding round was not disclosed. Inman has reached out to Acre for comment regarding the amount.
A number of funds participated in the new seed round, including Sovereign’s Capital, Home Technology Ventures, Studio VC, Front Porch Ventures, Unpopular Ventures, Duke Capital Partners, and former CEO of Invitation Homes Fred Tuomi.
Acre’s model is rooted in alternative finance. It provides equity-building through short-term mortgages of three to five years on homes it buys for its clients. It offers low down payments, typically around five percent, paid to Acre.
Buyers can choose to buy the home from Acre at the end of their initial term, applying their “value share” to the amount, transfer that share to another Acre home or leave and take it with them.
The announcement said that Acre customers on average “saved $9,000 in purchase costs, and is projected to benefit from an additional $50,000 through ongoing savings and home appreciation.” The latter figure is based on an estimated average annual appreciation of four percent over three years.
The company’s model offers consumers a range of product iterations based on shifting equity percentages, terms and time frames. Interested agents are advised to spend time on the company’s FAQ section.
“Acre’s base product is 10 percent cheaper than a mortgage per month and guarantees a 10…