Knock has expanded its home lending program into Southern California.
The startup launched Home Swap in Los Angeles last week and will add seven markets stretching from Bakersfield to San Diego, according to the Los Angeles Daily News. The push into L.A. and surrounding areas comes at a time when Southern California home prices are continuing to climb.
New York-based Knock expanded into South Florida in December and now operates in 25 markets across seven states. The company recently raised $600 million in debt and equity.
Home Swap allows sellers to buy their new homes before selling their old ones by pre-funding new mortgages, freeing up a liquidity problem that many sellers have. Knock also offers sellers an interest-free bridge loan for up to $25,000 to repair and renovate their old home before listing it for sale. The startup will typically work with sellers in the $300,000 to $750,000 range.
If a home fails to sell in six months, Knock will provide a backup offer, according to a release. Knock launched Home Swap in July.
The program is targeted at prospective homebuyers who would otherwise need to sell their home to raise the cash for a down payment on a new property.
[LADN] — Dennis Lynch