Get debt free when you buy a home – here’s how.

When it comes to applying for a mortgage, most people focus on their income. But it turns out that the fastest route to getting approved for a bigger home loan is to pay off debt.

With Loftium, you can speed up this process: use Loftium for the down payment, and free up your own funds to get debt free.

Why does paying off debt matter?

Simply lowering your current debt level doesn’t help much if you still have monthly payments to make. Even if you only have $6000 remaining on your car loan, if your monthly car payment is $500, that’s $500 per month less you can put towards your mortgage. This can mean ~$100,000 less when it comes to your bank approved purchase price, all because of a $6,000 car loan.

If you have the savings to do it, totally paying off debt could be a smart move. You’ll get debt free (woo hoo!), potentially improve your credit score and likely get approved for a bigger home loan.

Think it’s impossible to pay off debt? Loftium can help.

Use Loftium’s down payment to offset the savings you put towards your debt payoff. Get debt free and get a down payment from Loftium, in one fell swoop.

What this actually looks like.

Here’s a typical example of how our homebuyers use Loftium’s down payment, pay off debt and boost their max home price:


Interested in paying off your debt and using Loftium to boost your max purchase price?

Send us your info to get a custom plan.

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Take advantage of our down payments – customize them!

Your down payment, your way

Customize Loftium’s down payment estimates to suit your homeownership and financial goals: Airbnb multiple bedrooms, choose your contract length, and select the split of the monthly Airbnb income you take home.

Airbnb Multiple Bedrooms

Airbnb more bedrooms to get more down payment. Should you find a 3 bedroom home you love, but the price tag is too steep, Airbnb 2 bedrooms to get closer to $50,000 down.

Contract Length

Select an agreement length of 12, 24, or 36 months. The longer we work together, the more down payment you’ll get up-front.

Monthly Split

Choose to receive 20%, 30%, or 40% of the monthly Airbnb income each month depending on your needs. If a bigger down payment is more important, choose a smaller split. If help with your monthly mortgage payment matters more, choose a bigger split.  

Customization in action 

Airbnb multiple bedrooms and choose different contract lengths for each space. Check out this example:

Get $50,000 towards your down payment when you buy a new home that has a mother in law unit, plus 2 bedrooms on the main floor.

  • Airbnb the mother-in-law for 36 months and,
  • 1 bedroom upstairs for 12 months
  • Choose to take 30% of the Airbnb income home each month
Ways to boost your down payment
  • Live in the mother-in-law, Airbnb the main living space
  • Airbnb the master bedroom and bathroom
  • Set up a small kitchenette in a space with a separate entrance

Start customizing today on

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Here’s the income you need to live in each Seattle neighborhood

People often come to us thinking that even with $50k of  down payment assistance from Loftium, they won’t be comfortable with their monthly mortgage payments based on their current income. But you might be surprised–the dream home for many Seattleites is within reach, it’s just a matter of looking in the right neighborhood. 

To get you started, we’ve figured out the necessary annual income needed to purchase Loftium-eligible homes (2+ bedrooms, no HOA) in Seattle neighborhoods. Take a look:

Neighborhood Bottom 25% of home prices* Monthly payment (w/ 5% down)* Annual income (w/ 43% DTI)*
South Park $346,250 $1,959.09 $54,672.17
Rainier Valley $421,250 $2,383.44 $66,514.52
Delridge $439,250 $2,485.28 $69,356.68
Beacon Hill $490,000 $2,772.43 $77,370.00
Bitter Lake $492,500 $2,786.57 $77,764.75
Lake City $496,000 $2,806.37 $78,317.39
Columbia City $566,250 $3,203.85 $89,409.72
Green Lake $633,750 $3,585.76 $100,067.84
Ballard $689,950 $3,903.74 $108,941.70
Madison Park $708,000 $4,005.87 $111,791.76
U District $722,750 $4,089.33 $114,120.75
Ravenna $725,000 $4,102.06 $114,476.02
Capitol Hill $740,500 $4,189.76 $116,923.44
Fremont $784,000 $4,435.88 $123,792.00
Queen Anne $788,500 $4,461.34 $124,502.55

Want to run your numbers with Loftium, personally? Schedule your sit-down to buy in a neighborhood that works for you.

And check out these great homes that sold in each neighborhood (Loftium’s down payment offers are in yellow):

South Park (sold October for $325,000)


Rainier Valley (sold October for $380,000)


Delridge (sold August for $425,000)


Beacon Hill (sold August for $389,000)


Bitter Lake (sold July for $461,100)


Lake City (sold September for $485,000)


Columbia City (sold July for $555,000)


Green Lake (sold September for $624,950)


Ballard (sold October for $580,000)


Madison Park (sold July for $680,000)


University District (sold August for $725,000)


Ravenna (sold July for $590,000)


Capitol Hill (sold August for $592,500)


Fremont (sold August for $555,000)


Queen Anne (sold August for $735,000)

*We sorted homes by price under $1,000,000 and selected the lowest 25%  that sold in the last 3 months that met Loftium criteria. These numbers are based on a 5% down payment and we assumed 1.5% closing costs (but actual costs may vary). The monthly payment includes principle, interest, taxes, insurance and PMI. 43% is the max debt-to-income ratio you can have to get a conventional loan.

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