- Modern finance company Noah (formerly Patch Homes) announced it has secured $150 million in funding to transform home equity financing and help struggling homeowners
Modern finance company Noah (formerly Patch Homes) announced it has secured $150 million in funding to transform home equity financing and help struggling homeowners.
Noah also saw rapid growth since it raised the Series A funding round from Union Square Ventures in 2019. The investment also symbolizes the confidence in Noah’s home equity sharing model as it is democratizing homeowners’ access to their most valuable asset — which is the wealth trapped in their homes.
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.
With this round of funding, Noah will continue providing more homeowners with up-front, payment-free financing. And in return, sharing a percentage of the home’s future appreciation or depreciation. This is especially a big deal 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 puts cash into homeowners’ pockets right away.
Recently, Noah rebuilt its technology platform from the ground up to allow homeowners to benefit from faster and 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.
And 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.
Currently, Noah is actively hiring to help support and scale its product offerings. And the company will be expanding its product offering in east coast markets in Q2 2020.
Key Quotes:
“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. This latest capital shows our investors’ commitment to helping advance the aspirations of U.S. homeowners.”
-Noah Chief Investment Officer Rahul Parulekar
“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. 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.”
-Sahil Gupta, Founder of Noah
