Today, we announced that we have secured a financing partnership that will help us fund $150 million worth of equity sharing contracts for homeowners and further our mission to transform home equity financing and help struggling homeowners. As a company, we have experienced rapid growth since securing our Series A funding from Union Square Ventures in 2019. This latest investment signifies confidence in our home equity sharing model as we democratize homeowners’ access to their most valuable asset – the wealth trapped in their homes.
We recently rebuilt our 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 – we can now 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 our customer portal which helps provide us a holistic view of each individual homeowner. From start to finish, we are 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.”
Our 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. We'll use this $150 million in capital to continue providing more homeowners with up-front, payment-free financing. 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, we are proud to be 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. “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.”
We are actively hiring to help support and scale our product offerings, and will be expanding to east coast markets in Q2 2020.