Opendoor is taking its mortgage business beyond the homes it sells itself. Opendoor Home Loans exited beta Sept. 4 with a broader lineup of fixed- and adjustable-rate mortgages that can now be used for eligible purchases in markets where the lender is licensed.
The expansion builds on a limited relaunch earlier this year, when Opendoor began testing its rebuilt in-house mortgage operation. The latest rollout widens that program to eligible purchases beyond Opendoor-owned homes.
Opendoor adds fixed-rate loans and ARMs
The lender’s expanded mortgage lineup includes 30-, 20- and 15-year fixed-rate loans, as well as 5/6, 7/6 and 10/6 adjustable-rate mortgages. Borrowers can prequalify in minutes without a hard credit pull, according to Opendoor, then apply digitally and verify income, assets and documents online. Licensed mortgage professionals remain available for borrowers who want assistance during the process.
The rollout is broader, but it is not nationwide. Opendoor Home Loans can finance purchases only where it is licensed, and its mortgage disclosures note that loans remain subject to credit, underwriting and property approval. Programs, rates and terms can also change.
Opendoor can now finance third-party purchases
Until now, the relaunched mortgage operation has gained most of its visible traction through Opendoor’s own resale business. Opening the loans to third-party purchases gives the company a path into transactions even when it does not own the property being sold.
Early numbers from Opendoor suggest buyers in its existing ecosystem have been willing to use the lender. In an Aug. 4 quarterly update, the company said it expected more than half of its scheduled resale closings in Colorado to use Opendoor Home Loans.
Texas was still much earlier in the rollout. After roughly six weeks, nearly one in five scheduled Opendoor resale closings there were expected to use the lender. The company cautioned that adoption could vary by state.
Those figures do not show how the lender is performing outside Opendoor-owned inventory. The company has not yet disclosed comparable adoption data for buyers using its financing on third-party listings.
That makes the latest expansion particularly relevant for agents. An Opendoor mortgage can now enter a transaction without an Opendoor-owned home attached to it, giving buyers another lender to weigh against banks, mortgage brokers and other digital providers.