Real estate technology firm addresses bridge lending demand
Compass launched its Bridge Loan Services program, aimed at giving homeowners more purchasing power and opportunity to buy a new house before selling theirs.
Bridge lending has the potential to stoke demand by adding more buyers to the market while sellers working with Compass can have no out-of-pocket costs for up to six months on approved bridge loans. Spanning that gap between homes means consumers don't waste money on temporary housing and take on less risk. This year, bridge loans were the most-requested service from Compass real estate agents and their clients, becoming the catalyst for the company’s latest development.
"We are incredibly excited to be able to offer Compass Bridge Loan Services to homebuyers and sellers across the country," Carly Litzenberger, senior director of new ventures at Compass, said in a press release. "Until now it's been far too difficult for homeowners to easily access the equity in their homes. By unlocking this capital, Compass is putting the power back in the hands of the homeowner and bringing a new group of buyers to the housing market."
Bridge loan programs could be gaining momentum in both the residential and commercial markets. LoanDepot and OfferPad came together for a home lending joint venture in 2017 and Sutherland Asset Management launched a commercial bridge platform in 2015, to name a couple.
"Better.com and Compass both have similar shared visions of making the homeownership process easier through best-in-class technology and superior customer service. We're thrilled to partner together on a service that combines a concierge-like customer offering with innovation," Vishal Garg, CEO and founder of Better.com, said in the press release.