Streamlining Home Equity: Better.com Introduces One-Day HELOC Product
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Last updated 03/29/2024 by
Rachel WhitenerEdited by
Summary:
Better.com introduces a game-changing One-Day Home Equity Line of Credit (HELOC) product, offering approval decisions within 24 hours of locking interest rates. This innovation aims to expedite access to home equity funds, revolutionizing traditional HELOC timelines that often take days or weeks. With streamlined processes and advanced technology, Better.com empowers homeowners to tap into their home equity swiftly and efficiently. Through this groundbreaking offering, Better.com continues to redefine digital lending and reshape the landscape of home equity financing.
Better.com, the digital lending pioneer, has unveiled its latest innovation in the financial market: the One Day Home Equity Line of Credit (HELOC) product. This product promises consumers approval decisions within a mere 24 hours of locking their interest rates.
A year after the debut of its initial HELOC product, Better.com continues its trajectory of innovation with the introduction of the One Day HELOC. This upgraded version exemplifies the company’s commitment to accelerating the process for customers seeking access to home equity funds.
In a recent interview with HousingWire, Better CEO Vishal Garg highlighted the significance of this new product. Garg noted that despite the availability of home equity, many consumers resort to expensive alternatives such as credit cards or personal loans due to the lengthy approval process associated with traditional HELOCs. The One Day HELOC aims to address this gap by offering a swift alternative comparable to the speed of obtaining personal installment loans or credit cards.
Traditionally, securing approval for a HELOC could take anywhere from three to five days with digital lenders and several weeks with traditional banks. Better.com aims to disrupt this timeline by providing approval decisions within a single day.
To qualify for the One Day HELOC, homeowners must furnish requisite documents, including pay stubs, W-2 forms, mortgage statements, and bank statements, within four hours of locking their interest rates for their first- or second-lien HELOC with Better Mortgage.
This innovative product is available in 49 states and Washington, D.C., and is applicable to primary residences, second homes, as well as single-family homes, condominiums, and townhouses categorized as investment properties.
The launch of the One Day HELOC follows the success of Better.com’s One Day Mortgage product, introduced in January 2023. Garg revealed that the demand for One Day Mortgages has been substantial, constituting over 80% of the company’s mortgage portfolio, though specific origination volumes were not disclosed.
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About Better.com
Established in 2014 by Vishal Garg, Better.com made its public debut in August 2023 through a merger with special purpose acquisition company (SPAC) Aurora Acquisition Corp., slightly deviating from its initial IPO timeline.
In its inaugural earnings report post-merger, Better Home & Finance Holding reported a GAAP net loss of $340 million in Q3 2023. Despite this, executives remain optimistic, outlining plans to reduce expenses and projecting a funded loan volume of $500 million in the fourth quarter of the same year.
Better.com, headquartered in New York, is slated to announce its Q4 2023 earnings on March 28. According to Inside Mortgage Finance, the company ranked as the 64th-largest lender in the United States, originating $2.5 billion in the first nine months of 2023.
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