What is the Homeowner's, Advance Fund?
The Homeowner’s Advance Fund (HAF) is a pool of funds set aside for Our homeowners to withdraw from when they may need it most. We also refer to this as our Rainy Day Fund.
For every Hany Adam Homes co-owner, we set aside three months’ worth of mortgage payments. Homeowners can borrow money from this fund to cover unexpected expenses or other needs. Co-owners can then pay it back, interest-free, within 45 days. After the 45-day mark, the withdrawal begins to incur interest and, if not repaid by the time the home is sold, will be repaid with sale proceeds.
Why is this term important?
The Homeowner’s Advance Fund is important as it protects both the co-owner and Us in the event that unexpected costs arise for the co-owner while living in the home.
As we’re both invested in the property, it’s in our best interest to help ensure all of our homeowners stay in good standing with the property, avoiding the risk of default on their loans or any other co-owner obligations.
Here is an example:
For instance, Our co-owner realizes they have a leak in their roof, but they don’t have the funds available to repair or replace it right away. Allowing the roof to continue to leak will lead to damage to the home, more expensive repairs, and a lower property value.
The co-owner may choose to withdraw money from the Homeowner’s Advance Fund, allowing them to make the repair immediately. Then, they can repay the loan when they have the ability to, or allow it to accrue interest until they decide to sell the home and repay it with their portion of the sale proceeds instead.