In a market where
"There's a huge affordability benefit here for buyers because if you think about it compared to every other home this would be something they could afford because it comes with a 2% mortgage not a 7% mortgage," he said.
Government loans backed by the Federal Housing Administration, Department of Veterans Affairs and the Department of Agriculture are eligible for an assumption, but conventional loans are not.
The company, which recently secured a $1.25 million seed round, would not reveal how many transactions have been thus far facilitated byway of their platform. Singh says that when more consumers are educated about the product demand will follow.
"The biggest issue right now is that people just don't know this is an opportunity they're eligible for," he said. "We want every American and every homeowner to know this is a benefit that they can pursue and so as more folks get to know about the opportunity and customers are educated, we will see that the volume in this type of transaction takes off."
Roam predicts that about 30% of all mortgage originations in 2021 are eligible for a mortgage assumption and have rates below 4%, which is the loan pool that the company is trying to tap.
The company claims that it will manage the operational details of an assumptions process and "will keep buyers and sellers updated on the status of their mortgage assumption with an easily accessible dashboard and timely communications." It is uncertain what cut Roam takes for its services.
The company's platform is currently available in Georgia, Arizona, Colorado, Texas and Florida.
