LoanSense, which launched in 2022 and is based in Ypsilanti, Michigan, is focused on increasing home-purchasing power for home buyers by reducing student loan debt for borrowers, thereby improving their debt-to-income ratio.
Washington, DC (July 20, 2022) —Village Capital today announced an investment in LoanSense from its Financial Health Innovation Fund (FHIF), an early stage investment vehicle funded by MetLife Foundation. LoanSense, which launched in 2020 and is based in Ypsilanti, Michigan0, is focused on increasing home-purchasing power for home buyers by reducing their student loan debt, thereby improving their debt-to-income ratio.
LoanSense has developed an easy-to-use solution that allows eligible borrowers to reduce their student loan payments at a critical time: when they are applying for a mortgage. LoanSense integrates with mortgage lenders, allowing the company to intervene before an applicant is denied for a mortgage. The result is an average increase in purchasing power of $98K. LoanSense simplifies the process for both lenders and borrowers, originating more loans for lenders and providing greater wealth-building sooner for borrowers.
Village Capital first worked with LoanSense through its FinHealth US 2021 accelerator program, in partnership with Freddie Mac, Paypal, and TIAA. At the conclusion of the program in April 2022, LoanSense was peer-selected by fellow cohort companies as the most investment-ready company in the cohort.
“LoanSense is addressing two major challenges facing borrowers in the US right now: crippling student loan debt and a housing market that is becoming increasingly inaccessible for low to middle income consumers,” said Heather Matranga, VP of Impact Investments at Village Capital. “We are really excited about their innovative approach to partner directly with mortgage lenders, and thrilled to provide them the capital that can help them scale their impact.”
“A person’s home makes up 82% of assets at retirement. Homeownership is key to economic stability and mobility,” said Catalina Kaiyoorawongs, Founder and CEO of LoanSense. “I was personally denied a mortgage in 2015 and was told to pay down my student loans first. It was only after extensive research that I found out I could change my student loan plan, and the adjusted debt-to-income would qualify me to buy a home. Lenders are not equipped with the student loan expertise to help our generation understand their best options. Our vision at LoanSense is to enable lenders to instantaneously know how to approve instead of denying my generation the American dream of homeownership.”
The Financial Health Innovation Fund is a Vilcap-managed fund that is part of Village Capital’s Impact Investment work – a focus on helping our partners invest with impact through customized, hands-on investment support.
About Village Capital
Village Capital helps entrepreneurs bring big ideas from vision to scale. Our mission is to reinvent the system to back the entrepreneurs of the future. Our vision is a future where business creates equity and long-term prosperity. Since 2009, we have supported more than 1,4000 early-stage entrepreneurs through our investment readiness programs and facilitated more than 150 investments, including from our affiliated fund, VilCap Investments, which has invested in more than 110 program graduates.
About MetLife Foundation
At MetLife Foundation, we are committed to driving inclusive economic mobility for underserved and underrepresented communities around the world. We collaborate with nonprofit organizations and provide grants aligned to three strategic focus areas – economic inclusion, financial health and resilient communities – while engaging MetLife employee volunteers to help drive impact. MetLife Foundation was established in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. Since 1976, MetLife Foundation has contributed over $900 million to strengthen communities where MetLife has a presence. To learn more about MetLife Foundation, visit www.MetLife.org.