Today, USAffordable Home, LLC announced a new twist on the traditional mortgage.

For existing mortgages, USAffordable proposed to underwrite a portion of the monthly payment in exchange for a 50% share in future appreciation. If there is no appreciation, homeowners will owe nothing.  According to USAffordable CEO, Keith Conner, the account is targeted to address a broad range of homeowners - from the foreclosure-challenged, to first-time purchasers, to cash-strapped seniors.

"It's a 'hand up' instead of a 'hand out'", said Keith Conner USAffordable Home's CEO. "And it can make a dramatic difference in meeting household expenses. For homeowners with a 6% mortgage, for example, it will be like making the payment on a 3.3% loan!"

The example cited by Conner would save the homeowner approximately $160 per month on a $100,000 mortgage, or about $9600 over a five year period.  If the appreciation on a property worth $125,000 (with a mortgage of $100,000) average 5% per year, the appreciation would be approximately $34,000.

USAffordable anticipates payment funding from the financing of institutional investors, including state and local pension funds, insurance companies, state housing authorities, endowment funds and other public-oriented entities, that want assets underwritten with residential real estate.

The company has not specifically announced the guidelines they will use to determine how much they will underwrite, which properties they will work with, or how they will determine property appreciation.

USAffordable plans to launch their "patent pending" product in February 2009.