Financing Program Created to Alleviate Housing Crisis Provides Homebuilders with Increased Access to Capital
Homepoint New Build partners mortgage brokers with regional independent builders to accelerate new construction
A new partnership in the wholesale mortgage lending industry is aimed at sparking more widespread development of new homes, alleviating the inventory woes that currently plague the real estate market. The Homepoint New Build program connects thousands of regional homebuilders throughout the country with increased access to capital through its nationwide network of local independent mortgage brokers to accelerate new home construction.
The program is offered by Ann Arbor, Michigan-based Homepoint, the nation’s third-largest wholesale mortgage lender, in partnership with Level Capital, a national private portfolio lender.
“The housing supply shortage that we’re experiencing nationwide can’t singularly be attributed to supply chain issues or even the time-consuming process required to build a home. The reality is that there are thousands of smaller home builders that have been effectively sidelined or restricted to a few builds each year because they’re under-supported in terms of financed capital,” said Phil Shoemaker, President of Originations at Homepoint. “We’ve partnered with Level Capital to build a stronger foundation of capital for those builders to drastically increase their workload capabilities, which will ultimately increase the pace and abundance of new home builds throughout the country.”
Homepoint New Build connects builders with business purpose construction financing through in-region independent mortgage brokers that is less expensive and more accessible than through banks, credit unions or hard-money lenders. Under this program, Brokers can help builders close new construction loans for single-family residences, multifamily homes, condos, and townhomes. Loan amounts can be as much as $4 million per unit or $25 million per project.
“There is tremendous opportunity for small to midsize home builders throughout the country to boost the nation’s housing supply which could have a leveling effect on housing prices,” said Brady Yeager, President of Level Capital. “We strongly believe that mortgage brokers can provide builders with a more efficient process, better technology, market and project risk analysis via our Level Tech platform.”
Homepoint New Build is currently available in 10 states: Arizona, California, Colorado, Florida, Idaho, Montana, Oregon, Texas, Utah, and Washington. Three additional states – Nevada, New Mexico and North Carolina – are coming soon.
About Homepoint
Homepoint, a subsidiary of Home Point Capital Inc. (NASDAQ: HMPT), is one of the nation’s leading mortgage originators and servicers, putting people front and center of the homebuying and homeownership experience. The company supports successful homeownership as a crucial element of broader financial security and well-being through delivering long-term value beyond the loan. Founded in 2015 and headquartered in Ann Arbor, Michigan, Homepoint works with a nationwide network of more than 8,500 mortgage brokers and correspondent partners with deep knowledge and expertise about the communities and customers they serve. Today, Homepoint is the nation’s third-largest wholesale mortgage lender and the 7th-largest non-bank mortgage lender.
Home Point Financial Corporation d/b/a Homepoint. NMLS No. 7706 (For licensing information, go to: nmlsconsumeraccess.org). Home Point Financial Corporation does not conduct business under the name, “Homepoint” in KY, LA, MD, NY, or WY. In these states, the company conducts business under the full legal name, Home Point Financial Corporation. 2211 Old Earhart Road, Suite 250, Ann Arbor, MI 48105. Toll-Free Tel: 888-616-6866.
Media Contact:
Brad Pettiford
Director of Public Relations
(734) 356-3092
bpettiford@hpfc.com
