Bottom Raises $ 100 Million To Challenge Better.com, Rocket Mortgage

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Lower announced Wednesday that it had closed its $ 100 million fundraiser.

Accel, a venture capital firm, funded the entire round and became the first outside investment for a previously established digital lender. As part of the investment, Accel partner John Locke will join Lower’s board of directors.

Since its inception in 2014, Lower has generated over $ 300 million in revenue and $ 3.5 billion in mortgage volume. get income from venture capital for growth, according to CEO Dan Snyder.

“We are interested in really challenging big players like Rocket and get more a level playing field with BetterSnyder said in an interview.

Lower can compete with leading digital lenders when it comes to customer service and speed, he said.

“One of the differences is that consumers are digital whenever possible, but we still believe in 15 minutes with an advisor,” Snyder said.

Lower currently offers purchase and refinancing loans through conventional products, FHA and VA products, while servicing its loans at the same time. The company also uses a sub-service. The Series A money will go towards expanding the company, with the main priorities for creating its own service platform, which is expected to launch in early 2022, as well as technology to accelerate the lending process. Lower also plans to “invest heavily” in artificial intelligence and machine learning to make life easier for customers and save more time talking to people.

The 1,700-employee company based in Columbus, Ohio specializes in the millennial and Gen Z demographics as well as all consumers trying to transition from tenant to homeowner. Fierce competition in the market makes it difficult for the younger generation to buy housing with less accumulated loans and savings than the older generation. To solve this problem, Lower offers a home savings account insured by the Federal Deposit Insurance Corporation.

“There is a high probability clients who are not ready; maybe their credit isn’t quite perfect and they can’t win this bet due to limited inventorySnyder said. “In line with making home ownership a reality, we decided to provide a high-yield home savings account and match a portion of the deposit with funds that need to be closed when buying a home.”



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