SAN FRANCISCO--(BUSINESS WIRE)--LendingHome – the largest, fastest-growing, online mortgage marketplace lender – today announced a new company record: the origination of more than $3 billion in mortgage loans for property investors and homeowners. The company achieved this milestone at an unprecedented pace: it lent its third billion in just eight months, which is 33% faster than the second billion and 375% faster than it took to lend the first billion.
Fueled by the efficiency of its proprietary technology, LendingHome has also funded the purchase of more than 14,000 houses and returned to investors more than $1.6 billion in principal and over $133 million in interest.
“LendingHome’s goal is to radically improve every aspect of the mortgage process for customers who simply want and need a better way to get a home loan,” said Matt Humphrey, co-founder and CEO of LendingHome. “The solution we provide has profoundly resonated with the fix and flip industry. This segment of the mortgage market recently accounted for almost 7 percent* of all homes sold, and we are proud to be a trusted partner helping fuel that growth.”
The "fix and flip" industry – in which property investors buy, rehabilitate (fix), and resell (flip) residential homes – provides a vital service to U.S. consumers who want to buy a home, but find themselves in the midst of a nationwide housing shortage: the rate of new home construction is near its lowest level in 60 years of record keeping**. Meanwhile, about 70% of the U.S. housing stock was built prior to 1989, according to the American Housing Survey, and is likely in need of significant repair or renovation.
“Just four years ago when we started lending, flippers had very few financing options,” Humphrey said. “They could ask friends and family for money, or they could find someone in their network who has a lot of cash and is willing to provide a so-called ‘country club' loan. Banks were never an option; they are too entrenched in 30 year mortgages to create a specialty loan product for property investors. So we seized upon that opportunity and created loans with reliable terms, transparency, and online access. Today flippers don’t need to know someone rich. They just need to visit our website.”
Cathy Gould-Harrison can attest to the difference LendingHome makes. She is the owner of Maxx Investors, LLC, in Stockton, Calif., and just closed her fourth deal with LendingHome: “When I started with LendingHome, I was shocked at how quickly and easily everything went. The website is easy to use and the process is 10 times faster than that of any regular lending company. I appreciate that I can log onto my account, see what I have uploaded, see what’s needed – and that’s really, really easy.”
LendingHome is more than a lender. With its company-wide value of “Customer First,” coupled with its built-from-scratch technology, LendingHome strives to be a partner that maximizes each borrower’s chance of success. First, the FinTech startup leverages its treasure trove of data to assess what worked, or didn’t work, with similar properties in similar markets. This allows LendingHome to give accurate rates and terms instantly, all online. Then the company’s “feasibility experts” assess the strengths and weaknesses of a borrower’s business plan and provide strategic counsel. Loans close in as fast as five days.
As a result of this hands-on partnership, LendingHome is helping flippers turn their hobby into a thriving small business. Sara and Dan Dyer are a retired couple in Nashville, who just completed their fifth flip with LendingHome and are currently financing their next one with the startup.
“We are amazed by how personable and communicative our lending team is. The relationship has been great, and they are always respectful of us,” said Sara Dyer. “But what really makes the difference is how knowledgeable they are. They understand that small things can stymie the flipping process because we have so many irons in the fire – we’re working with a construction team, appraisers, real estate agents, so many people. They know the hoops we’re jumping through because they understand the flipping process, and that has been invaluable to us.”
LendingHome has designed a better way for people to buy a home. Its built-from-scratch technology has transformed a slow, painful, paper-based process into a fast, transparent, online experience. At the same time, LendingHome is a marketplace lender: institutional and accredited investors have access to attractive, high-yield real estate assets. Since it started lending in mid-2014, LendingHome has funded more than $3 billion in mortgage loans. The company is headquartered in San Francisco with an office in Pittsburgh, Pa. To learn more, go to www.lendinghome.com or www.lendinghome.com/careers. NMLS ID #1125207