San Jose, Calif. (KTVU) - - Landed, an SF-based startup that offers down-payment assistance to teachers announced that it has raised $7.5 million in its Series A round led by Initialized Capital.
Founded in 2015, the startup invests up to half of a standard down payment in homes alongside educators instead of providing a loan with interest, in exchange for part of the appreciation when the home is sold.
The company has helped hundreds of people into homes worth more than $100 million in the metro areas of Denver, San Francisco, Seattle, San Diego, and Los Angeles. With its latest round of financing, the company plans to expand to more than a dozen markets by the end of 2019, including Austin, Boston, and Honolulu.
“Not only is Landed attacking a profound issue affecting teacher retention in metros and school districts throughout the country, this is a promising market opportunity to build a trusted brand and institution to help essential professionals achieve their lifetime financial goals,” said Kim Mai-Cutler, Partner at Initialized Capital in a statement.
The startup has collaborated with Fannie Mae to ensure that its down payment support meets guidelines under the Community Seconds program.
“Our team has worked closely with Landed to ensure that its down payment support meets Fannie Mae's guidelines under the Community Seconds program. As a result, these educators now have access to some of the most competitive loan products on the market,” said Jonathan Lawless, vice president for product development and affordable housing at Fannie Mae.
Landed says that their co-investing programs have increased the diversity of homebuyers. About 30 percent of Landed homebuyers are from underrepresented minorities (African American, Latino, or South Pacific Islander), while only 12 percent of San Francisco Bay Area homebuyers are from this group.