Zigg Capital, along with participation from Y Combinator and initial investors Antler and Exceptional Capital, launched a new mortgage marketplace meant to assist first-time homebuyers enter the market. With a $3.5 million funding round, Stairs Financial will help young Americans “defy economic headwinds like interest rates and high prices” to own their first homes.
“High interest rates, low inventory and high prices have combined to make it really hard for young Americans to buy homes,” Stairs Financial CEO and co-founder Malcolm-Wiley Floyd said in a release. “Our generation has had to deal with two recessions and a global pandemic during our peak earning and homebuying years. Many young Americans won’t be able to afford to buy a home with a conventional 20 percent down mortgage.”
Stairs Financial will connect first-time homebuyers with local lenders and find details on down payment assistance programs. Its free mortgage comparison product is powered by its database of homebuyer programs and mortgage products and uses automation and computer vision technology to track changes in assistance programs. These changes include fluctuating rates, updated eligibility requirements, and new program launches.
“Thousands of down payment assistance and credit programs have sprung up to help first-time homebuyers overcome the challenges, but these homebuying options are hard for homebuyers to find and evaluate,” Floyd said. “Furthermore, homebuyers have to find a lender who can underwrite the specific loan program they want to apply for. Stairs helps homebuyers find the right mortgage for them, with lower down payments, grants, and flexible underwriting.”
Stairs Financial also will provide a library of resources for first-time homebuyers to address uncertainties and unexpected challenges that come with buying a home. This information bank will include a homebuying guide that educates on topics like interest rates and credit.
“Zigg has studied a number of approaches to expand home affordability,” Zigg Capital Managing Partner Ryan Orley said. “The concept of leveraging technology to navigate the complicated system of incentive programs available to eligible homebuyers is particularly impactful and aligned. We are proud to partner with Malcolm-Wiley and Scott Fritz – they are talented entrepreneurs who deeply understand the problem they are solving at Stairs Financial.”
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