LOS ANGELES, Nov. 13, 2014 /PRNewswire/ -- Privlo, a VC-backed alternative mortgage lender, is expanding its operations into The Commonwealth of Virginia today, offering an alternative to creditworthy borrowers whose career, lifestyle, and finances may be considered too complicated to prove to traditional lenders. People with uneven or seasonal incomes, self-employed entrepreneurs, borrowers with a single blemish on their credit record, Millennials with nontraditional career paths and independent business owners are being left out of the housing market because they don't fit within the mold of traditional lenders' rigid borrowing requirements. Privlo aims to fix that with a technology platform and business processes that better qualify individuals, taking into account a far greater number of factors in one's personal history and future financial prospects to assess a mortgage application. Borrowers can see if they're a good candidate for a Privloan at https://privlo.com/do-you-qualify-for-a-privlo-loan.
"Borrowers have changed dramatically in the last couple of decades. There's an entire class of solopreneurs, freelancers, small business owners and even just regular folks who are much more creditworthy than their tax returns might show. We're finding that even in traditional professions like nursing and law, people are being rejected for mortgages when in fact they are extremely well qualified," says Privlo CEO Michael Slavin. "These are people positively contributing to our economy. They should be able to buy a home just like the generations before them."
The problem is especially pronounced in a state like Virginia where 1 in 5 purchase applications were denied last year. "Virginia is seeing a boom in independent businesses like aquaculture, wine, biotech and technology startups, and realtors in the area tell us something like this will really help struggling borrowers that are giving up on the idea of home ownership," says Privlo's Chief Credit & Product Officer Saro Vasudevan. "Right now we estimate it's a $200 billion market nationally and will likely grow as the majority of Americans continue to evolve financially and define their own careers."
Independent workers in the US grew to 17.9 million in 2014, up 12.5% over the previous year according to a study by MBO Partners, indicating that Americans are redefining what the common career might look like. With small businesses making up more than 90% of all American businesses, and Millennials putting off buying a home, Privlo will reach a significant segment of individuals that are increasingly being locked out of home ownership.
At the core of Privlo's lending philosophy is a sophisticated technology platform that not only simplifies the arduous process of applying for a loan, but also considers a wider range of data, including alternative documentation and career-specific factors, to determine if applicants are well qualified for a mortgage.
Privlo's team (https://www.linkedin.com/company/privlo), a majority of which have been self-employed or made 'complex income' as it is categorized in traditional lender circles, have a deep understanding of the people they serve. "We have a wealth of real estate and financial expertise, but more importantly, I like to tell our customers we've been there. We understand the frustrations and setbacks our customers may have faced, and we know it doesn't have to be like that. I think that's what makes us different than your usual banker or bank manager," Slavin says.
Launched in 2011 by CEO Michael Slavin, Privlo (www.privlo.com) provides mortgages, or "Privloans," to high-quality borrowers who aren't eligible for traditional bank loans. The founding team comes from the worlds of consumer finance, real estate and technology startups, and is passionate about creating a new alternative for Americans looking to buy a home. Privlo is currently lending in Idaho, Colorado, Texas, Tennessee, Maryland, Minnesota and Virginia, and will be launching in additional states in the coming months. Privlo is backed by Spark Capital and QED Investors, with headquarters in Los Angeles.
SOURCE Privlo Inc.