How these baby boomers skipped traditional mortgage to finance new Raleigh home
For the past 12 years, Chris and Terri Darden have lived as renters. Most recently, they paid $2,945 a month for a four-bedroom house in Cary.
They thought it was their best option. They’d owned before but now in their mid-60s, buying felt out of reach. “We didn’t want to get into a 30-year loan at our age,” said Terri Darden. “We might not live that long.”
They also worried about reselling if they had to relocate for work. They run a construction company. Before Cary, they’d lived in Las Vegas, Los Angeles and Wilmington. “We’ve moved three times in the last four years because of our business. We just haven’t felt secure enough to put money on anything,” she said.
That changed when their Realtor suggested Acre, a Durham-based co-ownership platform that allows “buyers” to partner with cash investors.
Instead of getting locked into a mortgage, the Dardens could acquire a share of a home’s appreciation without having to purchase the entire home outright or take on big debt. They’d also likely avoid other disadvantages — like getting outbid by other buyers in a hot market, or a greater loss of equity in a market downturn.
The Dardens had never heard about co-ownership until then but took the plunge. They’re now among those baby boomers (ages 61 to 78) topping millennials as the largest share of home buyers and reshaping the Triangle market.
This March, in partnership with Acre, they purchased a 2,494-square-foot traditional-modern home in Raleigh’s Neuse River Estates subdivision for $488,000.
Built in 2017, it features three bedrooms, two and a half baths, butler’s pantry and granite counter tops. There’s even a backyard pool for their golden retriever, Roxy, to take daily dips.
“That was a big deal for me,” Terri Darden said. “I wanted outdoor living. This house would probably be around $3 million in California.”
How it works
Acre is one of several alternative home-financing solutions to turn up in recent years, promising to help families achieve the American dream amid inflation, high home prices and now recession fears.
It launched in 2022 after landing seed funding from local investors like the Triangle Tweener Fund. Since then, it’s grown enough to open a second market in Atlanta, said Pete Crawford, co-founder and director of sales and operations.
It’s especially gained traction among older buyers, he said. “It’s more liquidity to spend on travel and grandkids.” Other perks: Acre covers closing and maintenance costs. “The maintenance support effectively turns a home for sale into one with amenities similar to a 55-plus community,” he said.
In the Dardens’ case, Acre purchased their home with an all-cash offer.
In exchange, the couple put down $24,400, which is 5% of the purchase price, earning a “value share” in the home’s appreciation.
Depending on their plan, and including taxes and insurance, monthly payments are around $3,509, which also buys 10% of the home’s appreciation, or $3,860, which gets 50% of the appreciation. Homeowners’ association fees are $300 annually.
The monthly payment is fixed, and contracts typically last three to five years.
After three years, Acre forecasts that they will have earned in wealth anywhere from $54,8166 to $65,807, with a predicted 4% appreciation. They’d keep anywhere from $7,450 to $18,441 more than a mortgage, the platform estimates.
By contrast, a 30-year mortgage on a $488,000 house with a 20% down payment ($97,600) with today’s rates would be around $3,463 a month, NerdWallet estimates. That’s about $122 to $417 less than Acre’s payments. Alternatively, a 5% down payment ($24,400) on the same house would increase mortgage monthly payments to around $4,347 — roughly $478 more than Acre’s payments.
When a contract expires, the Dardens have three options: purchase the home from Acre, transfer their share toward another Acre-approved home, or cash out their share, plus appreciation. They’re allowed to make cosmetic upgrades, like painting walls and changing light fixtures, but major upgrades require prior approval.
The couple moved less than a month ago and say they have no regrets.
“We’ve already gotten to know half of the neighborhood,” Terri Darden said. “They’re younger than us, in their 30s, but we seem to be able to get along with all ages.”
Is co-ownership right for you?
Realtors say there are a lot of upsides to co-ownership. While monthly payments may be on the “high side,” it helps first-time buyers who might otherwise not be able to get into the market.
In the Dardens’ case, Acre’s all-cash offer gave them the edge, said Tim Burrell, a Raleigh-based Realtor with RE/MAX, who represented the couple. “[The sellers] had no concern about whether the buyer could close. As a result, we got a great price and good terms. We gave them the quick, guaranteed closing that they wanted.”
But others urge caution.
“It’s a convenience, and there’s no convenience which doesn’t come with a price,” said Derrick Thornton, a broker-in-charge with Coldwell Banker Advantage in Durham. “I would advise my clients to still run the numbers themselves to see if the program is a good fit.”
This story was originally published May 22, 2025 at 5:00 AM with the headline "How these baby boomers skipped traditional mortgage to finance new Raleigh home."
