Homeward successfully raised $120 million in Series D equity financing and secured $330 million in asset-backed credit lines. These new funds will be used to expand the company's solutions for cash-backed real estate financing.
Saluda Grade led the equity round, with participation from several institutional investors. Participants included Continental General Insurance Company, Citi Ventures, Magnetar, Norwest, Harmony Partners, Adams Street Partners, LiveOak Ventures, Parker89, Era Ventures, and Javelin Venture Partners.
Thanks to this raise, the total amount of equity capital raised by the company since 2018 has reached $360 million. The funds will be used to develop the range of financial products, improve the technology platform, and accelerate nationwide expansion.
Homeward helps homeowners solve issues related to buying and selling homes. The company's financial solutions eliminate deal contingencies when selling a home and provide faster access to equity accumulated in the home. The Buy Before You Sell product allows homeowners to purchase another property before selling their current residence.
This product combines short-term bridge financing with a guaranteed reserve offer. The Cash Offer solution provides homeowners with certainty in a cash transaction, as well as the opportunity to benefit from potential appreciation upon subsequent resale of the property.
The Buy with Cash program helps buyers make competitive, cash-backed offers; after closing the deal, they can refinance into a traditional mortgage. Furthermore, Homeward has expanded its Sell Before You List program, which enables homeowners to sell property quickly without losing potential market gains.
The new $330 million credit line will be used to finance additional real estate transactions. This line complements the equity financing and supports the company's transaction-based business model. Homeward collaborates with over 25,000 real estate agents.
The company has already facilitated over $4 billion in housing transactions. Its distribution model focuses on real estate professionals rather than direct consumer advertising. Agents can use Homeward's products to address financing and timeline challenges.
The company's platform also includes Homeward Mortgage and Homeward Title services, which combine financial and transactional services into a single experience. The new funding will support expansion across all 48 US states.
The company plans to make the Buy Before You Sell service available nationwide by the end of the year. This expansion comes as homeowners continue to face increasing selling timelines. Homeward's founder and CEO, Tim Hale, noted that agents remain key figures in successful deals.
He emphasized that the company developed its solutions based on the difficulties agents face when working with clients. The platform also uses technology to optimize deal and underwriting processes. Homeward has integrated artificial intelligence into certain operational workflows.
The company's systems are capable of extracting information from documents and assisting with property reviews. These capabilities help teams evaluate inspection reports, photos, and video materials of properties. This latest funding will provide Homeward with additional resources to expand its product line.
The company stated that its solutions aim to increase confidence throughout the transaction by solving issues related to timelines, affordability, and access to home equity. Homeward's expansion followed the company's broadening of its product offerings in response to changes in the housing market. Initially, the company focused heavily on helping homeowners buy before selling. Later, rising interest rates made moving more expensive for many homeowners, prompting Homeward to develop products for sellers needing faster deals.