Startup Orchard launches a new mortgage product offering


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A growing number of real estate startups want to offer a fully integrated platform, giving users the ability to find, buy and close a home in one place.

Orchard (formerly called Perch), which operates a home buying market, is the latest. The company said on Wednesday that it had entered the lending business.

Orchard began with the mission of helping people buy homes before they sold the ones they currently own by providing them with the necessary cash.

Since then, it has broadened its offer.

Orchard launched a title and escrow unit, dubbed Orchard Title, in the fall of 2018. Earlier this year, the company launched the first pilot of its integrated mortgage offering in the Texas markets.

And on Wednesday, he announced the official launch of Orchard Home Loans.

CEO and co-founder Court Cunningham said Orchard has repeatedly heard from clients that they want the company to be able to help them with their mortgage as well.

Orchard’s lens is similar to that of many others in space (think Zillow, Open door, Offer block and in that it wants to provide all the services a buyer might need from start to finish. Or in other words, it seeks to offer a fully integrated real estate platform. The company offers AI-powered home search, as well as fully digital mortgage and fence.

The way it works is for Orchard to ask a potential client questions about their current home and goals through an online form. She then carries out a free assessment of her home to prepare a cash offer, and puts a client in touch with one of her advisers. This advisor then helps the client to “visit any house” in their area. When they are ready, Orchard then uses their money to make a free contingency offer. At closing, clients can move in when they’re ready and won’t have to pay a mortgage until their old home is sold.

Once their old home is sold, Orchard then transfers the new home to the client’s name. The company charges a one-time fee of 6% on the sale of the customer’s old home.

Before a client starts buying homes, Orchard notes, he’s pre-qualified for a mortgage to help him assess what he can afford to buy. They can work with any lender of their choice, including Orchard Home Loans. Orchard will then use his money to buy and hold the new home for them until the old one sells. Once the sale of the old house is completed, the client uses the mortgage, for which he has prequalified, to finalize the purchase of his new house.

Orchard’s head office is located in New York and provides services in Colorado, Georgia and Texas.

In January, Orchard raised $ 36 million in a Series B funding round led by Capital Navitas. This funding took the known company total lifted since its inception in September 2017 to $ 66 million, according to Crunchbase. Orchard has also raised a total of $ 220 million in debt financing since its inception in September 2017.

At the time of its Series B raise in January, the company said it had seen “10 times the revenue growth” and had more than 150 employees.

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