New program offers a co-investment plan, reducing upfront costs and monthly payments
Sun West Mortgage Company has launched EdgeAhead, a non-qualified mortgage (non-QM) loan program aimed at helping homebuyers with down payments through a co-investment model.
The program, currently available in Arizona, California, Florida, Georgia, and Texas, offers a co-investment provided by Crib Equity, allowing homebuyers to double their down payment funds.
The EdgeAhead program is not limited to first-time homebuyers and requires a minimum of 10% down payment from buyers. Crib Equity’s co-investment can contribute up to half of the total down payment, resulting in a reduced upfront cost, a smaller mortgage amount, and lower monthly payments. Unlike traditional assistance, this non-recourse co-investment does not require monthly payments on the assistance amount.
Under a shared ownership agreement, both the homebuyer and Crib Equity hold a proportionate share in the home's future equity. Homebuyers retain the flexibility to sell, refinance, or buy out the investment at any point during the shared ownership period, typically lasting 10 years. If the property is sold, the net proceeds are shared based on each party’s initial investment.
Sun West said that EdgeAhead can help homebuyers enter the market sooner with less money out-of-pocket and without the need for costly private mortgage insurance, which has been tearing California's housing market apart.
A recent analysis by JP Morgan Insurance estimated that insured losses from the Palisades Fire in the west of Los Angeles could reach $20 billion, with many affected homes potentially being uninsured. Additionally, Morningstar DBRS noted that other ongoing wildfires in the area could lead to a further $8 billion hit to insurance companies.
Pavan Agarwal, CEO of Sun West expressed his enthusiasm for the new program: "EdgeAhead will be a game-changer in the housing market,” Sun West CEO Pavan Agarwal said in a media release. “It represents a significant leap forward in making homeownership accessible for many who thought it was out of reach.”
EdgeAhead utilizes AngelAi, an AI-driven platform that automates the review of bank statements and expedites closings.
"It eliminates the headaches traditionally associated with non-QM loans. You would prefer to do a non-QM loan instead of an agency loan because it is so easy," Agarwal added.
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"Millions of Americans who can afford to own a home lack the upfront funds to buy one," said Skye Laudari, CEO of Crib Equity. "We're proud to partner with Sun West to offer an innovative solution that not only makes homeownership more accessible but also gives buyers greater flexibility-helping them balance upfront costs, monthly payments, and long-term financial security."
Founded in 1980, Sun West is a privately-owned mortgage-backed originator and servicer. The company is a HUD-approved mortgagee, VA LAPP-approved, USDA, Fannie Mae, and Freddie Mac-approved Seller/Servicer, and Ginnie Mae issuer. Sun West also issues HMBS securitizations as well as residential and commercial mortgage-backed securities.
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