The mortgage lending startup Better.com has raised $160 million in its latest funding round, bringing its total investments to just over $250 million and bolstering its place among a slew of startups that have developed online platforms to streamline the home buying and selling process.
"78 percent of Americans need a mortgage to buy a house. There are 52 million mortgages out there. And all of them are done in this really bad way," CEO Vishal Garg told Cheddar. "So we started dismantling every part of it."
The company, founded in 2016, uses its platform to match loans sought by borrowers with a collection of investors, which allows the company to "offer the lowest possible rates to the borrower," according to its website. Garg said the company has 32 strategic investors, who have a combined $700 billion in capital.
Better is also able to cut costs by removing other middle-men and removing commissions, which streamlines and hastens the process of requesting a loan, according to the CEO.
"All these 28 people you have to deal with, we put them all in one place, non-commissioned. And we're able to automate the process," he added.
In a press release, Better says it's funding $375 million in mortgages every month, and that it funded $1 billion in loans in the second quarter alone.
But the company is just one of many tech startups, including Blend, Flyhomes, Zillow, and Opendoor, hoping to disrupt the real estate industry by cutting down on time and costs.