During the COVID-19 pandemic, mortgage interest rates dropped to historic lows, reaching as low as 2.5%. However, by 2023, these rates surged to nearly 8%, leaving many potential homebuyers unable to afford homes. As of April 1, 2025, the national average 30-year fixed mortgage APR remains at 6.84%.
A possible solution to this affordability crisis lies in assumable mortgages, where an outstanding home loan can be transferred from the seller to the buyer—allowing new homeowners to lock in historically low rates.
Enter Roam, a New York-based startup dedicated to helping buyers access “thousands” of homes with assumable mortgages across the U.S. Founded in September 2023 by Raunaq Singh, a former Opendoor product lead, Roam has already facilitated $200 million in home sales for several hundred buyers in 2024. Over 200,000 buyers have registered on its platform in the past 12 months.
Roam’s Growth and Funding
Roam operates on a 1% fee structure, meaning it generated approximately $2 million in revenue in 2024. Singh claims assumable loans can reduce monthly payments by up to 50% compared to conventional mortgages.
To scale its operations, Roam recently secured an $11.5 million Series A funding round, led by Keith Rabois, Managing Director at Khosla Ventures. This round also saw participation from Founders Fund, an existing backer. Notably, the deal closed in just one week after Roam began fundraising.
Rabois, who has now joined Roam’s board, believes the startup is positioned as the “future of the housing market”, emphasizing its role in mitigating America’s housing affordability crisis.
How Roam Works
Historically, platforms like Zillow have not highlighted assumable mortgage listings, making them difficult for buyers to find. According to Singh, many sellers and agents are unaware they even have an assumable mortgage. Roam solves this problem by aggregating and listing these properties, allowing buyers to search and secure homes with significantly lower interest rates.
For example, if a home is priced at $420,000 with a 2.25% mortgage rate and the seller has $135,293 in equity, buyers can bring 20% down ($84,000) and use gap financing for the remaining $51,000, achieving a blended mortgage rate of 3.45%—a massive savings over traditional market rates.
Roam’s Expansion Plans
Currently, Roam operates in 17 states, including Arizona, California, Florida, Texas, and North Carolina, with plans to expand nationwide by the end of 2025. Singh anticipates Roam will facilitate $1 billion in home sales by year-end.
Since its inception, Roam has raised a total of $16 million across three rounds:
- $1.25 million pre-seed (September 2023) led by Rabois at Founders Fund.
- $3 million seed round (May 2024) led by Rabois, with participation from investors such as DoorDash founder Tony Xu, Figma founder Dylan Field, and Upstart founder Paul Gu.
- $11.5 million Series A (April 2025), led by Khosla Ventures.
With its rapid growth and strong investor backing, Roam is redefining the housing market, making homeownership more accessible despite rising mortgage rates.
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