Homepoint, a subsidiary of Home Point Capital Inc. and a mortgage originator and servicer based in Ann Arbor, in partnership with Level Capital, has announced the Homepoint New Build program to connect thousands of regional home builders throughout the country.
The effort seeks to increase access to capital through the program’s nationwide network of local independent mortgage brokers to accelerate new home construction.
“The housing supply shortage that we’re experiencing nationwide can’t singularly be attributed to supply chain issues or even the time-consuming process required to build a home,” says Phil Shoemaker, president of originations at Homepoint. “The reality is that there are thousands of smaller home builders that have been effectively sidelined or restricted to a few builds each year because they’re under-supported in terms of financed capital.
“We’ve partnered with Level Capital to build a stronger foundation of capital for those builders to drastically increase their workload capabilities, which will ultimately increase the pace and abundance of new home builds throughout the country.”
Homepoint New Build states it will connect builders with business purpose construction financing through in-region independent mortgage brokers that is less expensive and more accessible than through banks, credit unions, or hard-money lenders.
Under this program, brokers can help builders close new construction loans for single-family residences, multifamily homes, condominiums, and townhomes. Loan amounts can be as much as $4 million per unit or $25 million per project.
“There is tremendous opportunity for small to midsize home builders throughout the country to boost the nation’s housing supply which could have a leveling effect on housing prices,” says Brady Yeager, president 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 via 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.