Abdullah, who has spent nearly 25 years in the single-family and proptech space, said the past year has been spent on stabilizing and servicing the existing portfolio.
“Since last year, what we’ve really been doing … is understanding the best way to work with existing portfolio buyers and making sure they’re successful,” he said.
“That allowed us to get to a point where we really understand how the portfolio is being used and how to work with buyers in this situation. Now we can relaunch it and open it up to more buyers.”
US households are facing record debt levels and tight credit conditions. Total household debt rose by $197 billion in the third quarter, to a record $18.59 trillion, according to the Federal Reserve Bank of New Yorkmid 2025 Mortgage and Credit Report. The balance of the loan is worth more than $13 trillion of that amount.
Meanwhile, nearly half of home equity line of credit applications were denied by 2024, according to the Consumer Financial Protection Bureau (CFPB).
“Resources to help your average homeowner stay in their home while solving credit challenges are limited,” Abdullah said. “The company’s mission has always been to provide that respite from co-ownership. That was true when the company was founded, and it’s true as we re-introduce the impoverishment problem.”
Balance Homes’ equity-sharing model targets homeowners burdened with mounting debt who may have “locked-up” equity but few effective ways to access it. The company said its approach was designed to prioritize long-term stability and keep families in their homes.
Unlike peer-to-peer models that help buyers buy homes, Balance Homes focuses on homeowners who already own a property and have built up equity but don’t have access to traditional credit products. Many of its clients are “housing rich” but have debt due to life events such as job loss, medical emergencies or divorce, Abdullah said.
“They’re probably sitting on $100,000 or more in equity that they can’t access,” he said. “The only way they can touch that equity is to sell their home, and that shouldn’t be the only option.”
Under the Balance Homes model, the company offers equity issuance by becoming a co-owner, often taking a majority stake while allowing homeowners to retain meaningful ownership. The proceeds are often used to pay off existing mortgage balances and consolidate high-interest loans, with the goal of reducing monthly payments and stabilizing household finances.
The partnership is structured as a seven-year agreement, during which time homeowners can purchase Balance Homes at fair market value, refinance with a conventional mortgage, sell the home on the open market or ask Balance Homes to buy the remaining share.
“With the support of the Falco Group, there is a shared belief in more choices and more compassion for homeowners as Balance Homes returns to the market. When it comes to Americans and their homes, we firmly believe that there is a reliable partner. It is your family’s home, and your family’s future,” said Abdullah.
Abdullah revealed that Balance Homes was quietly and officially launched in December 2025 and has started marketing directly to consumers. The company said it expects to close its first new deal this month, with additional deals to begin in February. It currently operates in six states and plans to expand to more markets in the coming months.
“We believe Balance Homes is building a model that reflects the realities many homeowners face today,” said Richard Anderson, managing director at Falco Group. “Finding home equity shouldn’t be limited by rigid financial structures or short-term obstacles. Our investments support an approach that gives families flexibility, breathing room and a clear path in times of uncertainty.”
