Investments Lending

HomeUnion expands again; begins lending to single-family rental investors

Investors can take out up to 10 GSE-backed mortgages

for rent sign

HomeUnion, an online real-estate investment management firm, is expanding from helping investors identify single-family rental properties to purchase to actually helping them buy the properties.

HomeUnion announced Tuesday that it is launching a new division, HomeUnion Lending, which will focus on lending to single-family rental investors.

According to a release from HomeUnion, HomeUnion Lending will give SFR investors a mortgage option with a lender “dedicated to meeting the needs for single-family rental investors.”

In its release, HomeUnion said that HomeUnion Lending’s loan programs will include Fannie Mae and Freddie Mac-backed loans “when appropriate.”

HomeUnion Lending will also give investors the option of using asset-based lending vehicles and present investors with tools on how to best value rental income streams when making a lending decision. 

According to HomeUnion, if they qualify, investors can take out up to 10 GSE-backed mortgages for investment properties. HomeUnion Lending will also work with other lenders to provide financing to investors who may want to purchase more than 10 houses or need different qualifying guidelines, the company said.

HomeUnion Lending is currently licensed in Alabama, Florida, Indiana, Iowa and Oklahoma, and the company expects to be licensed in another 16 states by the end of the first quarter of 2016.

"Increasingly, we are seeing SFR investors using leverage through GSE-backed mortgages, a unique benefit for single-family home investors and other asset-based lenders to enhance their return on investment and build geographically-diverse property portfolios," said Don Ganguly, CEO of HomeUnion. 

"By starting our own lending company, we're simplifying the investment process and providing our investors with access to mortgage professionals who specialize in SFR lending and understand the particular needs of investors seeking to use leverage,” Ganguly continued. “All of this will allow us to provide superior customer service to SFR investors."

The move is part of a growing trend that seeks to capitalize on the number of smaller landlord/investors that dominate the SFR space.

HomeUnion also announced that it hired Chris Diaz to run its new mortgage brokerage.

Diaz brings more than 18 years of industry experience to the company and will be responsible for building the infrastructure and running the day-to-day brokerage operations.

Prior to joining HomeUnion, Diaz founded his own real estate and mortgage company, was a columnist for the Orange County Register and was a district manager with H&R Block Mortgage.

"HomeUnion is providing online data and analytics that help individuals intelligently buy remote SFR properties, and a dedicated SFR financing component adds a new level of customer service that simplifies the process even more,” Diaz said.

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