reAlpha has signed a definitive agreement to acquire InstaMortgage, a move intended to add direct mortgage lending capabilities alongside the company’s existing mortgage brokerage operations and better align brokerage-to-lending workflows for homebuyers.
The proposed transaction would bring reAlpha a technology-enabled, originations-focused lender that specializes in purchase and refinance loans and operates across 32 states. reAlpha said those states include markets such as New York, New Jersey, Illinois, and Ohio, which it described as new markets for the company.
InstaMortgage, founded in 2008 and headquartered in San Jose, California, has helped more than 3,500 borrowers secure residential mortgage financing across its footprint, according to reAlpha. The lender reported more than $4 billion in volume over the past five years and has received industry recognitions, including being named by the Financial Times as one of America’s Fastest-Growing Companies and inclusion on Deloitte’s Technology Fast 500 and Inc.’s Inc. 500 list.
Under the terms of the definitive agreement, reAlpha would acquire 100% of InstaMortgage’s outstanding equity for approximately $8.5 million, payable in a mix of cash and reAlpha common stock, including deferred consideration. The deal is subject to regulatory approvals and other customary closing conditions, and reAlpha expects the transaction to close in the first half of 2026. The company said it expects to fund the cash portion with cash on hand at closing, and noted additional deal details are included in a Form 8-K filed on December 22, 2025.
InstaMortgage was originally founded as Arcus Lending and rebranded as InstaMortgage in 2021. The company said it aims to deliver a digital-first mortgage experience by combining technology with advisory support and competitive rates.
KEY QUOTES
“This agreement is about building the operating system for modern homebuying. Buyers don’t experience brokerage, lending, and closing as separate categories. They experience one process where clarity and execution matter.”
“Following the completion of the acquisition, InstaMortgage will bring direct lending infrastructure and multi-state licensing that fits our platform strategy.”
Mike Logozzo, Chief Executive Officer of reAlpha
“Once completed, this transaction will materially expand our mortgage business capabilities. A direct lender platform will give us another execution path alongside brokerage and support tighter workflow alignment from intake through closing.”
Jamie Cavanaugh, Chief Executive Officer of reAlpha Mortgage
“We built InstaMortgage with a clear focus: deliver a modern origination experience powered by strong operators and a digital-first process.”
“reAlpha’s vision for an integrated AI-powered homebuying platform aligns with how we see the market evolving, and we’re excited about what this could mean for borrowers, loan officers, and partners as we work toward closing.”
Shashank Shekhar, Founder and Chief Executive Officer of InstaMortgage
