A mission-driven housing company just got funding to help local families become homeowners.
LadderUp Housing on Thursday announced a $250,000 investment from the Richard King Mellon Foundation to help the company’s expansion into Allegheny and Westmoreland counties.
The investment is designated for the acquisition and renovation of new homes through LadderUp’s rent-to-homeownership model. This model assists low- to moderate-income families in transitioning from renters to homeowners by providing financial coaching and mortgage-readiness support.
Tom Voutsos, Founder and CEO of LadderUp Housing, emphasized the importance of homeownership as a wealth-building opportunity.
“Homeownership remains one of the most important wealth-building opportunities for working families, yet millions of Americans remain locked out of traditional mortgage pathways,” Voutsos said.
LadderUp Housing purchases, renovates and constructs single-family homes in markets with aging yet affordable housing stock. These homes are then rented to families who may not yet qualify for a traditional mortgage. During the rental period, LadderUp connects tenants with financial coaching partners who work to improve credit scores, build savings and prepare for homeownership.
Once mortgage-ready, tenants purchase their homes, often at or below the original appraised value, providing them an immediate opportunity to build equity.
Since its founding, LadderUp has acquired nearly 90 homes and renovated more than 65 housing units across its four markets. The company has already facilitated homeownership for six families, with 100% of these sales occurring directly to existing tenants. Residents participating in the program have seen an average credit score improvement of 75 points. Several homeowner families have also reduced their monthly housing costs and gained immediate equity in their homes.
LadderUp’s work also focuses on reinvesting in neighborhoods often targeted by out-of-state institutional investors that purchase low-cost housing stock strictly as rental properties, without a pathway to tenant ownership. By renovating aging housing stock and selling homes to local residents, the company seeks to preserve affordability, expand homeownership opportunities and create lasting community impact.
“Our motto is ‘Same Neighbor, New Homeowner,’” Voutsos said. “It reflects our belief that tenants should be able to stay in the homes and neighborhoods they already know and love. Our job is just to help them transition from renter to homeowner.”
The Richard King Mellon Foundation’s investment in LadderUp comes through its Social-Impact Investment Program. This program invests in for-profit startups with social missions that align with the Foundation’s philanthropic strategy. The Foundation has invested more than $25 million in support of 76 impact-focused startup ventures through this program.
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