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After leading the nation in refinancing last year, Rocket Mortgage hopes to do more business with homebuyers with a new bridge loan product that lets existing homeowners buy before they sell and make non-contingent offers to compete with cash buyers.
Rocket Mortgage’s bridge loan, announced Monday, gives homebuyers up to six months to sell their home and make interest-only payments during that period.
Bill Banfield
The average homeowner has $181,000 in untapped equity, and providing immediate access to that money for a down payment or closing costs “removes one of the biggest barriers to moving,” Rocket Chief Business Officer Bill Banfield said in a statement.
In markets that remain highly competitive for buyers, Rocket said, the ability to make non-contingent offers can help win over sellers who are considering multiple offers.
Even in less competitive markets, bridge loans help buyers “avoid the hassle of double moves and temporary housing, while taking the time to secure the best offer on their existing property,” the company said.
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Homebuyers can also turn to competitors including HomeLight and Calque, who partner with multiple lenders to offer “Buy Before you Sell” products, and power buyers like Knock and Zavvie.
Detroit-based Rocket Mortgage is licensed in all 50 states and Washington, D.C., sponsoring 3,602 mortgage loan originators working out of 57 branch locations nationwide, according to records maintained by the Nationwide Mortgage Licensing System (NMLS).
Rocket Mortgage was the nation’s second biggest mortgage lender in 2024, with $97.6 billion in funded loans accounting for 5.4 percent of originations by volume, according to Home Mortgage Disclosure Act (HMDA) data tracked by iEmergent.
Pontiac, Michigan-based United Wholesale Mortgage, which overtook Rocket as the leading U.S. mortgage lender in 2022, originated $139.7 billion in mortgages last year, accounting for 7.7 percent market share, according to iEmergent HMDA data.
Most of Rocket’s 2024 origination volume came from refinancing existing mortgages (56 percent) or providing home equity loans (6 percent). UWM did most of its business (63 percent) with homebuyers, iEmergent HMDA data shows.
With $44.5 billion in refinancings last year, Rocket Mortgage edged out UWM’s $43.4 billion in 2024 refi volume.
Rocket expects its pending acquisition of the nation’s biggest loan servicer, Mr. Cooper, will help grow its refinancing business, while a deal to acquire national real estate brokerage Redfin will put it in contact with more homebuyers.
Speaking at an investment conference in May, Rocket Companies CEO Varun Krishna said the lender has set a goal of handling 8 percent of purchase mortgages and 20 percent of refinancings.
After acquiring Mr. Cooper, Rocket will be collecting payments on about one in six U.S. mortgages with $2.1 trillion in outstanding balances. When those homeowners are ready to refinance, Rocket will have a leg up on “recapturing” their business, Krishna said.
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