Last year, online mortgage lender Lenda announced that it raised $5.25 million in its Series A round of funding, and planned to use the money to expand its business into new states.
On Tuesday, Lenda announced that it’s done just that, adding four new states to its base of operations.
Lenda focused on refinances when it launched in 2013, but now offers purchase mortgages as well.
Previously, the company operated in California, Oregon, Washington, Colorado, and Texas.
But now, Lenda will also be available in Illinois, Pennsylvania, Michigan, and Arizona.
According to the company, this expansion will allow Lenda to serve customers in 54% of the digital mortgage market.
“Today, customers are looking for an alternative to the antiquated status quo they've become accustomed to when it comes to home loans. Why walk into a bank or deal with your realtor’s broker when you can get a loan from your couch without the hidden fees?” Jason van den Brand, Lenda co-founder and CEO, said.
“With our market expansion into several key states, we're excited to deliver our platform to customers so they can have their loans funded expeditiously, without hassle,” van den Brand added.
Lenda claims that it can close loans in 17 days, nearly 3.5 times faster than the industry average of nearly two months by using proprietary technology to evaluate loan applications quickly.
Lenda also states that it saves on costs by offers a digital loan officer model, and then passes those savings – approximately $409 a month in loan repayments – to its customers.
In a release, the company said that its customers have saved over $750,000 in fees and over $5 million in interest over the lives of their loans.
Lenda said that it officially closed its Series A funding round earlier this year, which was led by SF Capital Group, along with CreditEase Fintech Investment Fund and inside investor, Rubicon Venture Capital.
In addition to expanding to new states, Lenda also said that it planned to use the money to fill “key” management positions and invest in improving its software platform.