Roam launched a service that helps homebuyers secure home loans as low as 2% through the mortgage assumption process.
The debut comes as the company has secured a $1.25 million seed funding round, the company said in a Wednesday (Sept. 13) press release.
Roam aims to increase accessibility to affordable rates and assist buyers in navigating the housing market, according to the release. It is available in five markets — Georgia, Arizona, Colorado, Texas and Florida — and the company plans to expand to new markets and impact 30% of all real estate transactions in the United States.
The service comes as mortgage rates have skyrocketed, surpassing 7% and reaching their highest level in decades, the release said. This surge has resulted in a home affordability crisis, with first-time homebuyers being priced out of the market and a decline in inventory and home sales.
PYMNTS Intelligence found that a large share of consumers has scuttled their homebuying plans, believing homeownership is out of their reach. They may be realistic, as mortgage rates are expected to remain at elevated levels through the coming months, according to “Consumer Inflation Sentiment: Rising Housing Costs Deflate Economic Optimism.”
Roam aims to tackle these challenges by assisting homebuyers in getting home loans through the mortgage assumption process, per the release. By using assumable mortgages — a type of home loan that allows a homebuyer to take over the existing mortgage terms from the seller — Roam enables buyers to save up to 50% on monthly mortgage payments compared to buying a home with a traditional mortgage at today’s rates.
“Assumable mortgages are one of the most undervalued assets in America,” Roam founder and CEO Raunaq Singh said in the release. “We started Roam as a way for homebuyers to take advantage of the assumable mortgage opportunity and increase access to affordable rates so that more Americans can realize their dream of homeownership.”
Roam manages all aspects of the assumption process on behalf of buyers, providing a hands-free experience, according to the release.
The company also helps sellers and real estate agents, the release said. For sellers with an assumable mortgage, the company offers personalized marketing materials to attract more potential buyers and better offers. The company advertises listings to qualified buyers through its website, which is specifically designed for searching and discovering homes with assumable mortgages.