- Key Insight: Discover how a new round of funding is powering an AI homebuying platform's expansion into mortgage lending, and into the California market.
- Expert Quote: "California buyers … are not looking for someone to unlock a door and mark it up by 3%" — Arman Javaherian, co-founder and CEO
- Forward Look: Expect the fintech to launch a mobile app later this year.
A new artificial intelligence homebuying platform, which claims to return up to 2% of the purchase price to buyers, is joining the mortgage space.
Homa raised $5 million in seed funding and is launching mortgage lending, the startup announced Thursday. It's also expanding into California, and already reaches buyers in Texas and Florida.
The fintech allows buyers to search for homes, tour them, negotiate and close mortgages on one platform. It disclosed its first AI closings earlier this year, and said it enjoyed its strongest month in September, amid
The company says it can credit up to 2% of a buyer-broker commission back to a homebuyer. Credits have averaged more than $10,000 and have exceeded $40,000 on higher-priced homes, according to the fintech. They can also be used for closing costs, lowering of the purchase price, or buydowns of up to 0.75%.
"California buyers do their own research, and they are not looking for someone to unlock a door and mark it up by 3%," said co-founder and CEO Arman Javaherian in a press release.
Homa is a licensed brokerage, and says its AI is trained on state-specific laws, property data and real-estate coursework. It has "local specialists" to handle tours for a flat fee, and offers are written and negotiated by experienced, in-house brokers. The company also said it will have a mobile app later this year.
The seed funding was led by Quiet Capital, with participation from Restive Ventures and Cambrian Ventures.
Homa's entry into the mortgage market follows major investments by the industry's biggest players in AI tools that improve origination flows and reduce costs.
Loandepot recently expanded its
