Fintech lender Aven is taking its home-equity lending model into the purchase mortgage market, offering qualified buyers up to $2 million in financing and promising closings in as little as seven days.
The California-based company announced Friday that its new Home Purchase Line combines a 30-year, fixed-rate repayment plan with an open-end line of credit, allowing borrowers to access available credit after closing without taking out a separate loan.
Aven says it recently closed a home purchase in Tucson, Arizona, in just 67 hours from application to closing.
A Different Kind Of Purchase Loan
Unlike a conventional mortgage, Aven's Home Purchase Line is structured as open-end credit secured by the property being purchased. The initial purchase balance carries fixed monthly payments over 30 years, while borrowers can reborrow repaid principal during the first five years, subject to available credit.
Rates start at 6.24% APR, according to Forbes, which reported Friday that Aven has already closed dozens of purchase loans across 10 states, including California, Florida, Arizona and Ohio.
The revolving portion carries a separate variable rate, meaning borrowers could face different borrowing costs when accessing additional funds after closing.
Aven co-founder and CEO Sadi Khan said the company's technology is designed to eliminate much of the manual work that slows mortgage transactions.
"Homebuying has many steps, and technology can make those steps faster, simpler and more efficient," Khan said.
The company uses AI, automated document verification, and financial account connections to process borrower information. Appraisals remain part of the process, with Khan saying they typically take two to three days.
Outside The GSE Market
The product's open-end structure also means the loans are ineligible for purchase by Fannie Mae and Freddie Mac, according to Aven.
That leaves the company relying on institutional financing and private credit rather than the conventional agency secondary market.
Aven already has relationships with Goldman Sachs, community banks, and private credit firms to finance its existing lending operations. Forbes reported that the company recently completed a $300 million securitization of consumer loans and has billions of dollars in additional lending capacity.
Home Equity Technology Moves Into Purchase Lending
Aven joins a growing field of fintech lenders using automation to cut the time and expense of home-equity lending.
Figure has built a sizable digital HELOC business around automated underwriting and rapid funding. Better and Rate have also introduced expedited home-equity products, while Better competes directly in the purchase mortgage market.
Aven's approach goes further by using an open-end credit line to finance the purchase itself.
The company has also been expanding where consumers encounter its financing products.
In September, NMP reported on Aven's partnership with RV manufacturer Forest River, which brought home-equity financing directly into participating RV and marine dealerships.
That arrangement allowed qualified homeowners to access up to $400,000 through a co-branded HELOC product without first approaching a traditional mortgage lender.
The latest launch extends Aven's lending infrastructure into another market, this time competing for borrowers at the point of home purchase.
A New Competitor?
Aven's pitch is straightforward: a buyer who can close in a week may have an advantage over one whose financing requires a month or longer.
That could appeal to borrowers in competitive markets, particularly those shopping for higher-priced properties. The $2 million lending ceiling also puts Aven in territory served by jumbo lenders, although its borrower eligibility requirements will determine how directly the products compete.
Aven's entry adds to the pressure to shorten purchase timelines. Mortgage tech companies have spent years automating income verification, document collection and underwriting, yet the full purchase process still involves appraisals, title work and other parties outside the lender's direct control.
Aven is betting that enough of those steps can be compressed to make a seven-day closing a competitive selling point.
