Better, one of the fastest-growing digital homeownership companies in the United States, announced today the launch of Better Appraisal Guarantee, enabling mortgage applicants and prospective homebuyers to waive their appraisal contingencies and more effectively compete with cash offers. Qualified buyers applying for home purchase mortgages can lock their terms online in approximately 15 minutes or less, and the Better Appraisal Guarantee means Better will fund the mortgage at the original terms — including the down payment amount, APR, and monthly payment– regardless of the final appraised value of the house. This is a key advantage, given close to 1 in 5 successful offers in recent months have waived the appraisal contingency, according to Motley Fool.
“Better’s mission is to make homeownership more accessible. Traditional appraisal policies and practices deter minorities, the LGBTQ communities, and others, from buying homes and building wealth for themselves and their families,” said Founder and CEO Vishal Garg. “We are doing this because it is the exact right thing to do for our customers. With Better Appraisal Guarantee, customers can make offers with confidence, allowing them to waive an appraisal contingency to strengthen their offer without overpaying.”
The Better Appraisal Guarantee leverages the company’s experience funding more than $30.9B in home loans and their unique realtor-matching and investor-matching platforms to provide speed, certainty, and savings to customers during one of life’s most significant financial transactions.
The technology behind the guarantee enables Better to assess where that value will likely appraise relative to the purchase price. The Better Appraisal Guarantee provides consumers with confidence in the financial impact their appraisal will have on their financing costs and required down payment. The Appraisal Guarantee is available to customers who work with both Better Mortgage and Better Real Estate.
Better has non-commissioned realtors and mortgage loan consultants available 24/7, through Better Real Estate (BRE), on-hand for end-to-end real estate services and support to agents and customers throughout their home buying journey. The Better Appraisal Guarantee is valid in every market with a Better realtor and where Better mortgage is licensed to do business. Not available in Hawaii, Nevada, and Massachusetts. Transactions must be for a primary owner-occupied residence and an agency-conforming mortgage loan of less than $822,375 with at least a 10% down.
Founded in 2016, Better is a digital-first homeownership company whose services included mortgage, real estate, title, and homeowners insurance. From its founding in 2016 through 2020, Better funded $30.9B in home loans and provided over $7B in cumulative coverage through Better Cover and Better Settlement Services, the insurance divisions of Better. Better has raised over $400M in equity capital since inception. The company was ranked #15 on CNBC’s Disruptor 50 2020 list, as well as being listed to Forbes FinTech 50 for 2020. For more information, follow @betterdotcom.