Fraction is now available in the US!
Today, we announce the official launch of our Fraction Mortgage product in the United States.
Our first US launch in Washington State comes on the heels of our $228mm USD debt-equity funding announcement and Series A in 2021 and success in the Canadian market. We’re proud to share our socially-conscious alternative for accessing home equity with homeowners across Washington State.
"The Fraction Mortgage 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." - Hayden James, CEO and Co-Founder
Why Washington State?
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 dollars in home equity available with $670 billion of that located 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. Our product can help homeowners in Washington tap into their growing home value to find relief or even diversify their income.
"The Fraction Mortgage 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. "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.”
What can Washington homeowners expect?
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 in need of 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.
Our loans feature no required monthly payments and are a flexible way of tapping into your home’s equity. With a Fraction Mortgage, borrowers can potentially cut their existing debt payments in half on average, achieved through eliminating their monthly mortgage payments.
We’ve built a first-of-its-kind platform that completely digitizes the entire mortgage application process with the development of 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.
Over the next year, we will launch in additional states across the country.
Washington State homeowners can get their free Fraction Mortgage estimate today by visiting https://app.fraction.com/application