A new home-equity line of credit platform launched by a financial technology startup promises prospective borrowers access to their properties’ equity in just a few minutes.
Hitch announced the launch of the new Hitch HELOC digital platform that it says gives homeowners access to the equity in their house ‘in under 5 minutes.” Once approved, funds are reportedly available “in under three days.”
On its website, the company says line amounts are available up to $500,000. The media release noted Hitch users can access up to 90 percent of their home’s equity.
The Austin, Texas-based company was launched earlier this year by its chief executive officer, William Schoeffler.
“The average American has more than 70 percent of their net worth tied up in the equity of their house,” Schoeffler said in the news release. “That is money they’ve earned and saved, and we want to make it as easy as possible to access that for home improvements, debt consolidation, or whatever else they may want to use it for.”
Schoeffler declined to discuss specific loan production data, though he did note in a written statement, “We’ve had several hundred people sign up for our platform already.”
So far, the eight-employee firm has raised $2 million from Peter Flint’s NFX, a venture firm focused on pre-seed & seed stage startups, and other investors. Flint was the co-founder of Trulia.