Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
675,558+7,403
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.77%-0.01
FintechHome EquityInvestmentsMortgageServicing Solutions

Splitero raises $12M to expand home equity investment operations

Fiat Ventures led the Series A round, followed by other eight investment companies

San Diego, California-based startup Splitero, which is focused on home equity investments (HEI), has raised about $12 million in a Series A funding round to expand its operations. 

Fiat Ventures led the investment round of $11.7 million, the parties announced Tuesday. Gemini VenturesJoint EffectsPBJ CapitalPermit VenturesDream VenturesGoodwater CapitalSpark Growth Ventures, and Oyster Fund participated in the investment round. 

According to Splitero CEO Michael Gifford, the company raised capital amid “tremendous growth” — despite the challenging economic environment. The startup formerly operated in California, Colorado and Washington but announced its expansion into Oregon and Utah as well. 

Splitero’s business model consists of providing up to $500,000 as a lump sum of cash to homeowners without income and credit score requirements or monthly payments. In exchange, customers give a share of the home’s appreciation to the startup. Clients must retain a stake of at least 20% in their homes. 

Homeowners have the option to repurchase the share of the house from Splitero at any time within the 30-year term via a refinance, home sale or cash buyout. Founded by real estate veterans in 2021, Splitero said it has secured more than $1 billion in equity for homeowners.

“Homeowners’ financial needs are constantly evolving, creating a demand for unique and flexible solutions that support them in reaching their goals and achieving financial wellness,” Alex Harris, Fiat Ventures’s general partner, said in a statement.   

Home equity products have become more popular due to surging house prices in the U.S. According to Black Knight, homeowners reached $11.5 trillion in tappable equity in the second quarter of 2022, $5 trillion above pre-pandemic levels. Tappable equity is the amount homeowners can borrow against while keeping a 20% stake in their homes. 

Numerous mortgage lenders are investing in home equity line of credit (HELOC) products, such as HomepointGuaranteed Rate, United Wholesale Mortgage and loanDepot.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Latest Articles

Freddie Mac’s Donna Spencer on their Servicing Excellence initiative 

On today’s sponsored episode, Editor in Chief Sarah Wheeler talks with Donna Spencer, vice president of servicer relationship and performance management at Freddie Mac, to discuss their new Servicing Excellence initiative and the benefits for their partners. Related to this episode: Related to this episode: Servicing Excellence https://sf.freddiemac.com/articles/insights/servicing-excellence Forging a New Path: The Future of […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please