LendKey, the company on a mission to make lending simpler, announced today triple-digit year-over-year application growth in its Home Improvement Loan Program. The program, which caters to the skyrocketing home improvement market, saw an unprecedented 450% loan application uptick in 2021 versus the previous year.
LendKey attributes the growth to a robust demand channel of vetted individual contractors, franchises, and key strategic partnerships. The company’s Home Improvement Loan Program partners with community lenders to provide low-cost borrowing options to creditworthy homeowners, processing over tens of millions in applications monthly.
At the start of the year, LendKey saw Q1 credit approvals surge 226% and closed loans increase 189% compared to the same time period in 2020. Soaring numbers continued into Q2 when April marked the highest single month for applications since the program’s inception in 2017. May then surpassed April’s record numbers and captured 260% growth over May 2020. June is projected to continue the same strong trajectory with early numbers pointing to the month securing the highest dollar volume disbursement in program history.
“Home improvement spending is up significantly across the country and LendKey helps community-based capital providers meet this demand with lower cost loans that empower homeowners to bring their remodel projects to life,” said Vince Passione, CEO and Founder of LendKey. “This is a story of the American Dream, where local lenders are vested in helping homeowners invest in their homes and the community, and we’re proud to be a part of this revitalization through our innovative loan servicing platform and partnerships with community banks and credit unions.”
Driven by a hyper-competitive housing market and changing cultural priorities, homeowners have been incentivized to enhance their home with everyday luxury purchases, rather than invest in new property. In-ground pools, large outdoor entertainment centers, HVAC systems and kitchen remodels top the list of LendKey facilitated home improvement loans as Americans commit to upgrading their current surroundings.
“As more of the workforce is projected to work from home indefinitely, people are choosing to invest at home, tackling projects to maximize the utility and enjoyment of their current surroundings as well as the value of their homes,” Vince Passione continued. “The shift in consumers’ attitudes towards their homes will continue to drive home improvement loan demand for the foreseeable future.”
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