The 1998 Homegrown Factory Suspension XTR was the high-end model in the XC-oriented full suspension bikes featuring John Castellano's Sweet Spot® URT design. Though the 3.75 inches of rear suspension travel was the same as the Homegrown All Mountain line, the frame geometry and shorter-travel 80mm suspension fork make the Homegrown Factory Suspension' a sportier handler. As in 1997, the 6061 aluminum frames were made by Anodizing, Inc. in Portland, Oregon. An important change from the 1997 model is the addition of a Hayes 22mm direct mount on the rear triangle. This model was only available in "Bass Boat Green" featuring Schwinn's new flag motif.
The Homegrown Factory Suspension XTR featured a complete Shimano XTR group, including pedals and hubs. Other parts highlights included the Titec titanium handlebars, stem, and seatpost. The Rock Shox Judy SL suspension fork continued Schwinn's use of 80mm travel forks on the Homegrown Factory Suspension models while Homegrown hardtails continued with 63mm travel forks.