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Roam secures funding to tap $1.4T in assumable FHA/VA mortgages with historic low rates

April 10, 2025

April 10, 2025

By Pulse Tech Analyst | Technology

Assumable Mortgage Revolution Gains Momentum

New York-based Roam has secured $11.5 million in Series A funding led by Khosla's Keith Rabois to scale its platform connecting buyers with assumable FHA/VA mortgages originated during the sub-3% rate environment. According to TechCrunch's exclusive coverage, the company reports staggering numbers: 200,000+ registered buyers in 12 months and $200 million in facilitated home sales in 2024.

Data shows the market potential is massive: $1.4 trillion of fully assumable FHA/VA mortgages originated in 2020-2021, with one-third of homes financed during those years eligible for assumption. Rabois calls Roam "the future of the housing market."

How Roam Works:

The platform identifies homes with assumable mortgages that traditional search methods miss. According to founder Raunaq Singh (ex-Opendoor), "Very few sellers or listing agents know they have an assumable mortgage," creating an untapped opportunity. Roam's technology enables buyers to:

  • Get pre-approved before making offers

  • Close in 45 days vs. 180 days for traditional assumptions

  • Bring as little as 5% down payment

  • Access rates from the 2020-2021 period

  • Release sellers from post-sale liability

Key Metrics Driving This Opportunity:

  • Buyer savings: Up to 50% on monthly payments compared to current mortgage rates

  • Down payment flexibility: Buyers can bring as little as 5% down to access blended rates around 3-5%

  • Transaction timeline: 45 days to close (vs. 180 days for traditional assumable transactions)

  • Growth trajectory: Projected $1 billion in facilitated sales for 2025

  • Potential lifetime savings: $200,000+ over the loan term for qualified buyers

Currently operating in 17 states including California, Florida and Texas, Roam plans nationwide expansion by year-end. The platform has solved several critical friction points, including pre-approvals for buyers before offer submission and releasing sellers from liability.

Example Transaction:

For a home with a $420,000 sales price where the seller has a 2.25% rate and $135,293 of equity:

  • Buyer brings 20% down ($84,000)

  • Gap financing covers remaining equity ($51,293)

  • Buyer receives blended rate of 3.45%

  • Result: Hundreds of thousands in lifetime loan savings

Action Step: Identify potential listing clients with FHA/VA mortgages originated in 2020-2021 who may have been reluctant to sell due to rate concerns—their properties have potentially significant advantages for certain buyers.

#assumablemortgages #proptech #startupfunding #mortgagerates