reAlpha Signs $8.5M Deal for InstaMortgage to Expand Direct Lending

reAlpha Tech Corp. (Nasdaq: AIRE) says it has signed a definitive agreement to acquire InstaMortgage Inc. for approximately $8.5 million as it looks to add direct mortgage lending to its existing mortgage brokerage operations, according to the company’s press release.

While some early summaries have described the transaction as “all-cash,” the structure disclosed in reAlpha’s Form 8-K filing describes a mix of cash, stock, and deferred payments.

Deal terms, per the SEC filing

In its 8-K, reAlpha said the aggregate merger consideration totals $8.5 million (subject to certain closing adjustments) and consists of:

• $500,000 in cash paid at closing.
• $1.5 million in reAlpha common stock issued at closing.
• $6.5 million paid in biannual installments over three years, delivered in cash or stock at reAlpha’s discretion (with additional terms and limits described in the filing).

The company said it expects to fund the cash portion with cash on hand, and that the transaction is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. 

What InstaMortgage adds

InstaMortgage was founded in 2008, is headquartered in San Jose, California, and operates across 32 states, having helped more than 3,500 borrowers secure residential mortgage financing. InstaMortgage has generated more than $4 billion in loan volume over the past five years, according to the announcement.

Why it matters for real estate professionals

For agents and brokers, lender capacity and speed remain major operational variables, especially when purchase deals hinge on timelines for pre-approval, underwriting, and closing. The Mortgage Bankers Association has forecast total mortgage origination volume rising to $2.2 trillion in 2026 from $2.0 trillion in 2025, in an outlook the group released at its 2025 annual convention.

reAlpha has also been emphasizing internal process automation. In September 2025, the company said it upgraded an internal “AI Loan Officer Assistant” to automate classification of 75+ borrower document types and use OCR and generative AI for extraction and validation (reAlpha’s September 2025 release).

Compliance note to keep in view

As more firms combine brokerage and lending under a single umbrella, real estate professionals should stay mindful of disclosure and consumer-choice requirements associated with affiliated business relationships. The CFPB’s Regulation X includes specific conditions for compliant affiliated business arrangements.