September 3, 2024

Arc Home Set to Launch HomeEQ to Meet Market Demands

By Brian Devlin, CEO, Arc Home

 

As we face ongoing shifts in the mortgage industry, the demand for innovative products that can keep pace with borrower needs becomes even more essential for growth and prosperity. Rising interest rates, increasing homeownership costs, and a tightening housing market are all reshaping how we think about our business and what is in store for 2025 and beyond.

At Arc Home, we have always focused on being proactive rather than reactive. That’s why I’m excited to introduce HomeEQ, our new and fully digital HELOC program designed to address the market’s current challenges while creating more opportunities for our partners. This program will launch in early October and we want to get you on board now!

Why Now? Market Conditions Have Changed

The real estate market is facing a significant shift. While rates have dropped slightly in recent weeks, overall, they are near a 20-year high. This has locked many homeowners into their current mortgages. Over 60% of homeowners hold mortgage rates below 4%, making it less appealing to sell or refinance. This shift has left many brokers without the traditional mortgage refinancing options that once fueled their business.

At the same time, the cost of owning a home has risen dramatically. Home insurance premiums and energy costs are on the rise. Combine this with overall inflation, and buying a new home becomes a daunting task.

These growing expenses put additional financial strain on homeowners, many of whom are now seeking alternative ways to tap into the growing equity in their homes. Total home equity in the U.S. has skyrocketed to $33.8 trillion, up 73% from 2019. This presents a unique opportunity for brokers to offer solutions that help homeowners access that equity without disrupting their existing low-rate mortgages.

A Solution for Today’s Market: HomeEQ

Recognizing these market dynamics, we developed HomeEQ, a fully digital HELOC product that gives homeowners quick, easy, and convenient access to their home equity without the need to refinance. With HomeEQ, borrowers can close in as little as 5 days — far faster than traditional methods. And because the process is entirely online, brokers can serve their clients with unparalleled efficiency, providing a solution that meets today’s demand for speed and convenience.

But HomeEQ isn’t just about speed; it’s about opportunity. In a market where refinancing is less feasible, a product like HomeEQ enables brokers to offer their clients a flexible, affordable way to tap into home equity for life’s important expenses, such as home improvements or debt consolidation.

Why Partner with Arc Home?

We’ve built HomeEQ with brokers in mind. We understand the importance of diversifying your product offerings to remain competitive and relevant in today’s environment. With inventory low and costs high, brokers need more than just traditional mortgage options — they need innovative solutions that meet the current market demands. That’s exactly what HomeEQ delivers.

Our fully digital platform ensures a smooth, streamlined experience for both brokers and borrowers, from the initial inquiry to funding. By partnering with Arc Home, brokers gain access to:

  • Digital Journey: Our team is ready to assist you every step of the way, but the process is so easy that you can continue to focus on your other business while your borrowers obtain their HELOC with HomeEQ.

  • A Trusted Partner: Arc Home is already a leader in Non-QM and Non-Agency lending. Expanding our product offerings gives you the peace of mind knowing you are working with a stable and successful lender.

  • Marketing Resources: As an Arc Home partner, you’ll receive access to customizable marketing materials, including a full white-label suite to help you promote HomeEQ to your clients.

The Time Is Now

At Arc Home, we’re committed to being ahead of the curve, and we believe HomeEQ is the next step in that journey. By partnering with us, you’ll not only meet the immediate needs of your clients, but also position yourself as a forward-thinking broker in an evolving market. We can’t wait to get started this October!

 

Brian Devlin
CEO, Arc Home