tillo is a real estate, financial services company that provides home buyers with down payment assistance. Launched in 2021 and based in Austin, Texas, tillo is on a mission to make homeownership affordable and attainable for everyone.

Rather than receiving a fixed, monthly cash payment (like a mortgage lender), tillo shares in a portion of the home’s value, reflecting a similar risk/return profile to the homeowner.

tillo provides buyers with debt-free financing used to assist with the down payment when buying a home. For example, if a home buyer is required to put down $100,000 when purchasing their home, tillo will finance $50,000 (50% of the total) in exchange for a profit-sharing interest in the home with the buyer.

tillo’s co-investment financing varies greatly to a loan from a traditional mortgage lender. We are a co-investor and partner alongside the homeowner by providing debt-free financing.

• First, tillo does not receive monthly cash payments (or any cash payment during the co-investment period). tillo’s co-investment is returned with the proceeds from a sale of the home or refinancing of the acquisition mortgage.
• Second, tillo’s return is not fixed like most traditional mortgage loans. tillo earns a return through its profit-sharing interest in the home, which is influenced by changes in market prices. We align ourselves with the buyer by taking equity-like risk in exchange for potential equity-like returns.
• Third, tillo shares in the profits or losses associated with the home’s appreciation or depreciation. In an unfortunate case where the home depreciates in value, tillo shares that loss with the owner. This is in contrast to mortgage loans that carry make-whole structures, which require the homeowner to repay the loan in full, regardless of the change in home price.

No. tillo’s investment is a debt-free agreement that will not show up on your credit report and does not add to your total debt.

Here are some qualities that make for good partnerships between tillo and homeowners:

• You are looking to purchase a home in a state in which we’re currently operational
• You have a credit score above 700
• You are looking to finance your home with a “jumbo” style mortgage
• The co-investment amount you’re looking for does not exceed $400,000

If you’re interested in buying your next home with tillo, contact us via the form on our website or by sending us an email at info@tillo.us and we’ll schedule a personalized discovery call with one of our home buying specialists. During this call, you can expect to learn more about tillo’s partnership model, the qualification and the homebuying process.

$400,000 is currently our maximum co-investment amount (implies a $4 million home purchase price assuming 80% mortgage financing). We are focused on distributing our available financing to as many home buyers as possible as we gain scale. If the maximum co-investment amount is a constraint for you, please message us and we can customize a plan that offers the same great value of the Down Payment Partnership Program.

tillo charges a one-time fee equal to 3.0% of the co-investment. This fee is for arranging and funding the initial investment. After the one-time fee is assessed, you will not be charged any fees by tillo.

Yes. There are several requirements that the homeowner must adhere to.

• The home must be the buyer’s primary residence. Leases or Airbnb’s that are longer than one month require tillo’s approval.
• Homeowner must be compliant in maintaining and upkeeping the property.
• Homeowner is responsible for paying the home’s mortgage, insurance, property taxes, and any HOA fees (if any).

Yes. You keep 100% ownership of the property and retain full control of any decisions offered to homeowners. tillo cannot control the timing of a sale, renovations or upgrades, and/or refinancing decisions.

If you wish to renovate your home, tillo would generally like to participate given we are partners and co-investors. However, we are not involved in the renovation decision nor do we opine on its scale and scope. tillo retains the right, but not the obligation, to participate in any property improvements and/or upgrades. tillo’s participation in the project will be at the original funding and profit-sharing split terms. Should tillo elect to not participate, the valuation of the home at exit is adjusted lower by the renovation amount to appropriately compensate you.

In order to be considered an improvement (as opposed to maintenance), the renovation project must be both (i) at least 2.5% of the property’s value and (ii) additive to the property as opposed to repair work.

Yes. Homeowners are able to take out tillo’s co-investment at any time after the initial two-year holding period. If tillo is repaid with proceeds from a mortgage refinancing transaction, the appraised value of the home will be used to determine tillo’s profit-sharing interest.

If you are selling your home, the home’s value is determined by the higher of (i) the pre-discounted sale price or (ii) the valuation assessed by a third-party appraisal. If you are refinancing your home, we can utilize your lender’s appraisal. To the extent that there were property renovations and/or upgrades where tillo did not participate as a co-investor, the home’s value is reduced by the amount of the renovation’s cost.

tillo will share in a pre-agreed portion of the gain with you. For example, if the home’s value has increased by $100,000 and tillo agreed to provide 50% of down payment for a 35% profit-sharing interest, tillo will receive $35,000 of the gain and homeowner $65,000.

tillo will share in a pre-agreed portion of the loss with you. For example, if the home’s value has decreased by $100,000 and tillo agreed to provide 50% of down payment for a 35% profit-sharing interest, tillo will realize a $35,000 loss. If the home is sold for a loss within the first three years of the investment, tillo does not share in the loss with the owner.

tillo’s co-investment matures at the same date as the acquisition mortgage. If the mortgage reaches maturity (generally 30 years), the homeowner is required to redeem tillo’s co-investment.