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Fraction expands to the United States with new approach to home equity

By Edlyn Cardoza

February 03, 2022

  • Canada
  • Debt-equity Funding
  • Fraction
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Fraction, Home Equity, Washington State, USA, Debt-equity Funding, HELOC, Underwriting, Mortgage, CanadaFraction, a socially conscious alternative for fairly accessing home equity, recently announced its availability in the United States. The company’s first launch in Washington State comes on the heels of its $228 million debt-equity funding announcement, Series A in 2021, and success in the Canadian market, with the new capital used to fuel Fraction’s US expansion.

Many American homeowners lack savings and carry large amounts of debt due to recent pandemic-related unemployment, rising real estate prices, and stagnating wages. But there is an often-overlooked opportunity available to US homeowners: their home equity. The US has $26.9 trillion in home equity available, with $670 billion in Washington State alone.

The Seattle area has seen significant property growth over the last decade, and those seeking financial support can now turn to Fraction. Fraction’s HELOC product can help homeowners in Washington tap into their growing home value to find relief or even diversify their income.

“Fraction’s HELOC is the innovative and tech-forward loan option that American homeowners need to live and age well, giving them access to fairer alternatives for securing investment capital or solving the problem of being house rich but cash poor,” said Hayden James, CEO and Co-Founder of Fraction. “We’re excited to expand into the US and Washington is an ideal first state for our roll out given its adjacency to the Canadian market.”

Often homeowners seek ways to unlock equity in their homes for large expenditures or diversifying income – examples include funding home renovations, consolidating or paying off debt, launching a business, or purchasing a secondary residence. While needing solutions, many homeowners aren’t interested in taking on more debt. Fraction allows them to access the built-up equity in their homes with optional monthly payments and an interest rate tied to their local market’s value.

Fraction’s loans feature 100% optional monthly payments and are a flexible way of tapping into your home’s equity. With a Fraction HELOC, borrowers can potentially cut their existing debt payments in half on average, achieved through eliminating their monthly mortgage payments.

Fraction is a platform that completely digitizes the entire mortgage application process by developing a “human-in-the-loop” automated underwriting system that speeds up the application processing by up to 10x and offers a mortgage servicing dashboard where borrowers can self-serve and manage their optional payments.

Fraction will launch in additional states by the end of 2022.

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