Homepoint partners with Accept.Inc to launch cash offer product

Wholesale giant Homepoint and fintech Accept.Inc are launching a cash offer program for homebuyers, they announced this week.

The program, Homepoint Cash Compete, will be offered in five states and touts cash closings in as few as 10 business days without an appraisal or financing contingency. Accept.Inc is a Denver-based cash offer platform that provides short-term warehouse lines for select lenders.

“By combining all-cash offers with the lower rates and fees associated with wholesale lending, independent originators give homebuyers and their real estate agents the best shot at closing deals and saving money,” said Phil Shoemaker, president of originations at Homepoint in a press release.

Homebuyers in the program first close on a cash home purchase loan with Accept.Inc. After the sale closes, the homebuyer works with their loan originator to complete an underwrite of the conventional loan application to refinance the cash loan into a traditional mortgage, a process Homepoint said generally takes 30 calendar days from the time of purchase.

Sellers value cash offers for their speed and certainty, and Homepoint claims cash offers are four times more likely to win a bid. The product also allows homebuyers to compete with deep-pocketed iBuyers or investors, who accounted for over 20% of homes purchased at the end of last year.

Homepoint’s program will be available to homebuyers in California, Colorado, Minnesota, Oregon and Washington. 

The lender is the latest to roll out a cash offer product this year, although the company appears to be the largest wholesale lender yet to do so. Other firms who have introduced cash financing products include American Financial Resources, HUNT Mortgage and New American Funding, Mortgage Professional America reported.

Accept.Inc was founded in 2016 and last summer raised $90 million in debt and equity. Homepoint, a Home Point Capital subsidiary, is coming off a company-record $96.2 billion in annual loan volume in 2021. However, its origination volume fell slightly in the fourth quarter to $20.5 billion from $20.8 billion the quarter prior.  The lender will announce its first quarter results Thursday morning.