HomeUnion in Irvine, Calif., has formed a mortgage-brokerage division that will focus on investors in single-family rental homes.
HomeUnion Lending will provide multiple mortgage options for investors, including loans guaranteed by Fannie Mae and Freddie Mac, asset-based lending, and lenders who can provide financing for the acquisition of multiple properties.
"We are seeing [single-family rental] investors using leverage through GSE-backed mortgages, a unique benefit for single-family home investors and other asset-based lenders to enhance their return on investment and build geographically diverse property portfolios," Don Ganguly, chief executive of HomeUnion, said in a Tuesday news release.
HomeUnion has hired Chris Diaz, a former district manager for H&R Block Mortgage, to run the new unit.
HomeUnion Lending is licensed in Alabama, Florida, Indiana, Iowa and Oklahoma, and is expected to be licensed in 16 more states by the end of the first quarter.