Denver Company Pioneers New Category of Housing in Colorado

Concept Unites Quality, Affordability to Help Families Achieve the American Dream

BaseCamp Communities is announcing today a new category of housing in Colorado designed to help more people enjoy the American Dream of home ownership in a state where, according to the U.S. Census Bureau, housing ranks as the seventh most expensive in the nation.

This new category of housing combines the traditional land lease, popular in places like California and the Sun Belt states, with permanent foundation homes. This model is designed to eliminate the high cost of raw land from the home ownership equation, thereby radically reducing the total cost of the home. Within the land-lease model, homeowners pay one monthly fee – similar in price to condominium dues or homeowner association (HOA) fees in master-planned communities – to cover the land lease, property taxes, common area maintenance and landscaping fees, and unlimited use of communities’ resort-style amenities. With the permanent foundations, the homes are eligible for standard 30-year mortgage financing, including zero down programs for qualified applicants. As a result, BaseCamp Communities is able to offer three-bedroom, two bathroom, detached homes starting at $110,000 – or as low as $899 per month with some mortgage products.

Land leases have long existed for manufactured homes, but without a permanent foundation, the homes were considered "personal property" and were not eligible for traditional mortgages. Personal property, or chattel mortgages were required. These more expensive loans require much higher down payments down and typically see interest rates 400-500 basis points higher than traditional mortgages, which is not the best option for first-time buyers or others seeking affordability. Recognizing this, BaseCamp Communities recently purchased two developments that previously offered land leases on homes without permanent foundations and is redeveloping these properties to incorporate the permanent foundation, and thereby today's attractive financing programs.

To illustrate the cost savings of this new category of housing, below are example monthly payments for three different types of three bedroom/two bathroom homes:

Traditional Home (located within block of a BaseCamp Community)
With a starting price of $225,000, 0% down and an interest rate of 6.50%, the principal and interest payment is $1422.15. Adding estimated property taxes and an HOA fee – both of which are included in the permanent land lease at a BaseCamp property – the total monthly payment on the $225,000 traditional home could be $1522.15.

Traditional Land Lease
A non-permanent foundation home for $105,000 with 10% down and 8.00% financing at 15 years (30 years is not usually an option for chattel mortgages), and a monthly land lease of $325 results in an estimated monthly payment of $1228.09.

Permanent Foundation Land Lease at a BaseCamp Community
With a permanent foundation and a price of $110,000, 0% down and 6.50% financing (the same terms as the traditional home), and a monthly land lease of $325, the monthly payment is $950.27.

Unlike most traditional new home communities, a home in a BaseCamp community also includes fully landscaped front and back yards, sprinkler systems, all appliances, and window coverings. The communities also offer recreation centers, pools, parks, and walking trails.

“Colorado’s soaring cost of land is one of the primary reasons the average cost of a home in this state is approaching a quarter million dollars,” said Andrew Luter, a partner at BaseCamp Communities. “With our unique approach to removing the cost of the land from home buying equation, and ensuring that these homes qualify for traditional mortgage financing, we’re able to offer an incredible housing value.”

There are currently two BaseCamp Communities in Colorado. Prairie Greens is in Frederick, which is a 25-minute drive north of downtown Denver or a 15-minute drive east of Boulder along Highway 52, and Antelope Ridge is in eastern Colorado Springs.