New Fintech Platform Makes Affordable Housing Available to More Buyers
SAN ANTONIO, Jan. 19, 2023 /PRNewswire/ — PorchPass™, developed and launched by Braustin Homes, the nation’s first virtual mobile home dealership, brings financial technology (fintech) speed to the process of securing land for a manufactured home. This new platform, accessible online, streamlines the manufactured home construction process, giving buyers the power and speed of a cash close.
“It’s hard to compete with cash buyers,” says Braustin Homes CEO Alberto Piña. “PorchPass will expand the pie by helping the industry say yes to more customers looking for homes in the $250,000 range. No one else is providing this kind of solution in the $20B+ factory-built home market.”
The challenge is universal: nearly one-third of all mobile home customers, who have already been approved for a home mortgage, also need a land home construction loan, which is racked with problems. These often-complicated loans, with high rates and fees, can take up to 140 days to clear, which puts potential homeowners at risk of losing their dream property to a cash buyer.
PorchPass has secured the financial backing to streamline the process, giving prospective homeowners the same leverage as cash, with the ability to pay the land seller in 14 (vs. 140) days, and save up to $15,000 or more in construction loan bank fees.
“Fintech harnesses the power of technology to make something old school simpler and more accessible for more people,” says Rackspace Technology Co-Founder Pat Condon, who serves on the Braustin Homes board of directors. “PorchPass’s fintech platform streamlines the traditional process for obtaining a construction loan, utilizing desktop appraisals, online applications, and other virtual tools that help buyers skip many of the expensive, time-consuming steps that put their land acquisition at risk.”
According to data reported by the Case-Shiller Home Price Index, an average single-family house in the United States costs nearly eight times the U.S. median annual household income. A new White House plan for boosting affordable housing calls for reviving the production of mobile homes, backyard flats and other manufactured units, which are now customizable with higher-end features that make them a desirable option for more consumers.
Now that the supply chain is improving, and manufacturers have lifted their allocation limits on how many homes each dealer can sell, Braustin Homes is launching its new fintech platform in Texas, which accounts for approximately 20 percent of the national manufactured homes dealership market. PorchPass was initially available to Braustin customers and is now offered to select dealerships in a pilot program.
“The speed of PorchPass will make more affordable mortgage products, including FHA and VA home loans, available to people in the manufactured housing space,” says Braustin Homes Chief Financial Officer Edward Stepanow. “Most land sellers won’t wait four months for an FHA loan to process in this hyper-competitive market. Now, more people will be able to compete with cash buyers and other faster financing.”
How PorchPass works:
- PorchPass validates that a buyer has been approved for a legitimate, underwritten mortgage.
- PorchPass steps in as a cash buyer, using cash to lock down the land, the home, and the contractor services so that a single-family residence can be built in 60 to 90 days.
- PorchPass then assembles all three components into a mortgage-ready product, which is sold to the homeowner, who purchases it with their pre-approved mortgage (mortgage companies cannot finance these three pieces individually).
“You can’t have a truly virtual way to buy a home without a virtual way to streamline the financial process,” says Piña. “PorchPass brings our virtual offerings full circle.”
ABOUT PORCHPASS™: PorchPass™ is the first fintech platform, offered by Braustin Homes, the nation’s first virtual mobile home dealership, which integrates across the entire industry. PorchPass empowers land buyers, land sellers and dealerships in the manufactured housing space with a cash-backed solution to streamline the new home construction process, giving buyers the power and speed of a cash close in today’s hyper-competitive market. This online process allows buyers to close on the property and start construction up to three months faster and save thousands on bank fees. PorchPass works with the land seller, home builder and mortgage broker to ensure each phase of funding progresses smoothly, so home buyers can move in faster and avoid costly short-term rentals. For more information, visit www.porchpass.com.
Mary Ullmann Japhet