Landed, a homeownership investment startup that aims to make it easier for teachers to buy a home by helping them with their down payment, now wants to help teachers get a mortgage too.
Landed is in full growth mode, expanding into new cities after raising more than $7 million earlier this year. And now, the company is expanding into a whole new line of business: mortgages.
Landed is partnering with NewRez and Shelter Mortgage Company to launch a mortgage lending joint venture called Landed Home Loans.
Landed currently offers down payment assistance to teachers and other school employees. The startup provides half of the standard down payment (up to $120,000 in exchange for a return on its investment: 25% of the appreciation when the property is sold.
If the home loses value, Landed assumes the loss.
Landed launched in Bay Area of California in 2015. Since then, it expanded to Southern California, Denver, and Seattle in 2018. In the last year, Landed has launched in three markets: Hawaii, Portland, and Washington, D.C.
Now, the company is expanding to mortgages with the help of Shelter Mortgage, the division of NewRez that focuses on joint ventures.
According to the companies, Landed Home Loans will be based in Colorado. The company also plans to build a “centralized platform with a customized origination and operations system, designed specifically for Landed customers.”
The company is also currently looking for a “centralized sales leader and team” to support borrowers in “select markets” nationwide.
“We are excited to join Landed in its mission to help these critical community supporters purchase homes that might otherwise be out of their reach,” said Randy VandenHouten, senior vice president, joint venture & retail lending, NewRez. “As we continue to seek out creative leadership and innovative partnerships to complement and expand our joint venture channel, we are impressed by Landed’s outside the box and thoughtful approach to the home buying experience.”
Landed Co-Founder Jesse Vaughan said the move will help the company help more deserving people buy a home.
“The partnership with NewRez, backed by Shelter Mortgage’s 30 years of industry experience, enables us to greatly strengthen the support we can offer essential professionals as they move through the homebuying process,” Vaughan said. “By adding a lender partnership, we further Landed’s mission to help those who serve our communities build financial security.”
