The HELP Loan Program
The HELP Loan Program
How those without means are able to buy safe, sustainable housing without a down payment
The most significant social impact from the HOM DAO project is the concept of creating a HOM Equity Liquidity Pool (HELP) and combining that with the HOM-NFT creation, bonding, and staking to create a DeFi method to help HOM DAO members buy properties. This could revolutionize the opportunity for billions of people who lack the capital required to buy safe, comfortable and sustainable housing.
HELP is essentially a revolving line of credit that will be used to help HOM DAO members acquire properties encumbered by HOM-NFTs, and then bond the HOM-NFTs to the treasury. It is expected that the HELP will grow exponentially as more people use the HOM Protocol.
The HELP Concurrent Closing will be a process that is envisioned as being similar to using a mortgage to buy a home. In a HELP Concurrent Closing, the HOM DAO member who wishes to buy the property would work with the owner (seller) of the property to mint a HOM-NFT for the property. The title for the property is then transferred to the HOM DAO trust in that country, and the DAO treasury provides the liquidity to purchase the home. The new owner bonds their HOM-NFT to the treasury in exchange for a loan for the property.
Initially, the HOM DOA will vote to approve using the HELP to purchase the property. The limitations of the program are established by risk threshold algorithms in the HOM Protocol Treasury Management system.
Over time, once the risk parameters are more clearly understood, and there is a proven aftermarket of liquidity to purchase NFT-Lender tokens along with their associated interest and fees, this process may become run by AI making the process permissionless.
The ambitious goal of the DAO in developing the HELP program to solve a major social issue across the world - affordable housing. If successful, the HELP Concurrent Closing project may provide a way for millions of people who lack the means to afford safe, sustainable housing.
