HousingWireHousingWire
Splitero, a San Diego-based fintech provider of home equity investments (HEIs), is continuing its growth this year. The company announced on Wednesday that it’s expanding to Florida, Nevada, Ohio, Pennsylvania and South Carolina.
In its announcement, Splitero said the move aims to combat rising living expenses and inventory shortages in housing markets nationwide. The company’s solutions offer alternative home equity products to homeowners who wish to keep their current mortgage rates.
This move follows a mid-November 2024 expansion to Arizona. In December, Splitero received $350 million in funding from Blue Owl Capital while also expanding to Tennessee and Virginia. Before that, the company secured $300 million from Antarctica Capital in October.
Splitero also offers its products in California, Colorado, Oregon, Utah and Washington.
Rising home equity values are prompting homeowners to access their equity, the company said. According to a report from ICE Mortgage Technology, the average homeowner has $319,000 of equity — and $207,000 of that is considered tappable, meaning that it can be accessed while retaining a 20% equity cushion. Collectively, U.S. homeowners have more than $11 trillion in tappable equity.
Splitero founder and CEO Michael Gifford said his company is in prime position to offer support.
“Homeowners are seeking smarter ways to access their home equity without additional debt, selling or refinancing their homes,” Gifford said in a statement. “We are happy to support families in reaching their financial goals.”
Homeowners in five new states added this week are “equity-rich” with property values that dwarf their outstanding loan balances, according to Splitero.
“Many homeowners in Florida, Nevada, Ohio, Pennsylvania, and South Carolina are equity-rich, meaning they have outstanding loan balances amounting to less than half their property’s market value,” Gifford added.
Through its home equity investments, the company offers a lump-sum payment of up to $500,000 without requiring any income verification, credit checks or monthly payments. Homeowners must share a portion of their property’s future appreciation, although they can repurchase this amount at anytime.
“Splitero offers homeowners a powerful opportunity to access their equity and use it to enhance their lives without taking on additional debt, especially as consumer debt reaches all-time highs and the cost of living continues to climb.” the company explained.
The company also operates its own brokerage — Splitero Homes — for homeowners who already work with Splitero.
Splitero’s expansion comes at a time when home prices and equity are ramping up nationwide. A recent report from home equity solutions provider Unison found that equity reached $35 trillion in mid-2024, up $4 trillion year over year. Home equity also accounted for one-fifth of household net worth.
HEIs are also coming under scrutiny from the Consumer Financial Protection Bureau (CPFB), which recently warned consumers that these contracts carry multiple risks due to their nonstandard disclosures, difficulties in calculating the final amount owed and outside-the-box regulatory status.
