SAN FRANCISCO--(BUSINESS WIRE)--Noah, a modern finance company redefining how homeowners access their home equity, today announced it has secured a further $150 million to finance equity sharing contracts for homeowners. The company has experienced rapid growth since securing its Series A funding from Union Square Ventures in 2019. This latest investment signifies the confidence in Noah’s home equity sharing model as it is democratizing homeowners’ access to their most valuable asset – the wealth trapped in their homes.
Noah recently rebuilt its technology platform from the ground up to allow homeowners to benefit from faster, simpler pre-qualification to meet their immediate financial needs. By just answering three simple questions – the address of the property, the debt balance on the home, and the homeowner’s credit score – Noah can pre-qualify homeowners for financing in less than two minutes. From there, homeowners who want to move forward with the process can submit their application using Noah’s customer portal which helps the company to gain a holistic view of each individual homeowner. From start to finish, Noah is able to distribute funds in as little as 15 days.
“We see our homeowner partners as more than just a credit score – our model leverages 80 billion data points across more than 60 different variables in order to obtain a holistic understanding of each investment. This approach is a game-changer for investors, as it provides access to a historically stable asset class and a long-term growth opportunity for them to invest in equity instead of debt,” said Rahul Parulekar, Chief Investment Officer. “This latest capital shows our investors’ commitment to helping advance the aspirations of U.S. homeowners.”
Noah’s equity sharing agreements represent a home financing solution that is aligned with homeowners and is an innovative approach that Noah’s newest backers believe in. Noah will use the $150 million in capital to continue providing more homeowners with up-front, payment-free financing, and in return, sharing a percentage of the home’s future appreciation or depreciation. Especially during this time of financial unrest, as millions of Americans are being forced to add to their debt or dip into their emergency funds in order to make monthly payments, Noah is putting cash into homeowners’ pockets right away.
“Amid this state of financial uncertainty, we’re encouraged by our latest capital investment as it strengthens our ability to continue to partner with homeowners and help them access immediate funds,” said Sahil Gupta, Founder of Noah. “Unlike traditional financial institutions, Noah is able to gain a full financial profile of our homeowner partners and provide them with funding – even if they may be facing unemployment or a reduced income. We’ve had homeowners come to us when they had nowhere else to turn and it's important that we continue to develop long-term partnerships, even in times of economic uncertainty.”
Noah is actively hiring to help support and scale its product offerings. The company will be expanding its product offering in east coast markets in Q2 2020.
Noah is a modern finance company helping homeowners tap into their home value to meet their financial goals without incurring new monthly payments or interest. Founded in 2016 and headquartered in San Francisco, Noah’s innovative equity sharing model is a debt-free alternative to traditional home equity loans and HELOCs. By partnering with homeowners, Noah offers homeowners in select metro areas across the United States upfront financing in exchange for a share in a percentage of their home’s future appreciation or depreciation. Noah’s investors include Union Square Ventures, Breega Capital, and Techstars Ventures. For more information visit www.noah.co.