Homepoint, a subsidiary of Home Point Capital Inc. and an Ann Arbor-based mortgage originator and manager, in partnership with Level Capital, announced the Homepoint New Build Program to connect thousands of regional homebuilders across the country.
The effort aims to increase access to capital through the program’s nationwide network of local independent mortgage brokers to speed the construction of new homes.
“The housing shortage we are experiencing nationwide cannot be solely attributed to supply chain issues or even the tedious process required to build a home,” says Phil Shoemaker, president of originations at Homepoint. “The reality is that there are thousands of small homebuilders who have effectively been sidelined or limited to a few builds each year because they are undersupported in terms of financed capital.
“We have partnered with Level Capital to build a stronger capital base for these builders to dramatically increase their workload capabilities, which will ultimately increase the pace and abundance of new home construction nationwide. .”
Homepoint New Build says it will connect builders with commercial construction finance through independent mortgage brokers in the area that are cheaper and more accessible than through banks, co-ops credit or high-priced lenders.
Under this program, brokers can help builders secure new loans for the construction of single-family homes, multi-family homes, condominiums and townhouses. Loan amounts can reach $4 million per unit or $25 million per project.
“There is a tremendous opportunity for builders of small and medium-sized homes across the country to boost the country’s housing supply, which could have a leveling effect on housing prices,” said Brady Yeager, Chairman of Level Capital. “We strongly believe that mortgage brokers can provide builders with a more efficient process, better technology (and provide) market and project risk analysis through our Level Tech platform.”
The program is currently available in 10 states: Arizona, California, Colorado, Florida, Idaho, Montana, Oregon, Texas, Utah and Washington. Three additional states – Nevada, New Mexico and North Carolina – are coming soon.