Foyer Unlocks $6.2M for Homeownership Assistance

The Challenges of Saving for a First Home

Landy Liu understands the difficulties associated with accumulating funds for a home purchase. His experiences at the mortgage startup Better.com, where he assisted numerous first-time homebuyers, highlighted the overwhelming nature of the home-shopping process.

When Liu himself began considering a home purchase in 2022, he encountered a significantly more challenging market, with mortgage rates having nearly doubled.

The Genesis of Foyer

“I temporarily paused my own purchase and utilized my intended down payment to launch Foyer,” Liu explained to TechCrunch. “I am actively a user of the platform, alongside our members.”

Foyer functions as a platform designed to facilitate down payment savings, effectively operating as a “401(k) for homeownership,” according to Liu. He points out the availability of specialized savings accounts and applications for various significant life events, including “retirement, college expenses, and substantial medical costs.”

However, a dedicated platform specifically focused on down payments for home purchases was notably absent from the market.

Foyer's Features and Mission

“We firmly believe that homeownership is a cornerstone of the American dream, and first-time buyers require comprehensive support,” Liu stated.

Through Foyer, users can establish specific savings targets and gain access to tailored advice on optimizing their savings strategies for a home. The platform also provides information regarding current mortgage rates and guidance on selecting a suitable real estate firm.

The company operates on a subscription basis, offering enhanced support to members. It facilitates connections between users and real estate professionals and enables customers to accrue rewards redeemable towards a home purchase.

Supporting Aspiring Homeowners

“Real estate service providers allocate substantial resources to marketing efforts aimed at end-users, and now they have a means to directly contribute to the financial well-being of prospective homebuyers,” Liu noted.

The process of buying a home has become increasingly difficult in recent years, with many potential buyers finding themselves priced out of the market, lagging behind the milestones achieved by previous generations at similar ages. “Effective planning is now more crucial than ever when saving for a home,” he emphasized.

Seed Funding and Future Expansion

Investors recognize the potential of this concept. Foyer has announced a $6.2 million seed funding round, spearheaded by Alpaca VC and Hometeam Ventures.

Accion Venture Lab and Clocktower Ventures also participated in this funding round.

“Homeownership is vital for building long-term financial stability, especially for communities historically excluded from wealth-building opportunities,” Amee Parbhoo, a managing partner at Accion Venture Lab, shared with TechCrunch.

David Goldberg, general partner at Alpaca VC, highlighted Foyer’s “innovative approach to homeownership” as a key factor in the firm’s investment.

“The combination of high-yield savings, educational resources, and strategic partnerships represents a promising investment in the future of home buying,” he told TechCrunch.

Competition and Growth

Liu indicated that he connected with the lead investors through existing networks within the fintech and proptech sectors. Currently, Foyer’s primary competition consists of traditional savings accounts.

Launched initially in Michigan last year, Foyer has since expanded nationwide, attracting over 10,000 users.

The newly acquired capital will be used to further expand the company’s reach and enhance its product offerings.

Addressing the Affordability Crisis

“Home affordability is facing a crisis, yet homeownership remains the most significant driver of wealth creation for middle-class and minority families in the United States,” Liu concluded. “Foyer provides a dedicated savings solution for first-time homebuyers, designed to support the next generation of homeowners.”