Knock, a real estate technology company, announced the close of its inaugural $100 million securitization. Cantor Fitzgerald & Co. served as the initial purchaser and bookrunner for the transaction. The buy-before-you-sell pioneer also announced that the company is now profitable.
The $100 million bond issuance will be used exclusively to fund Knock’s Bridge Loan products, the company states. Given the short duration of the assets and the revolving nature of the transaction, the issuance will provide approximately $900 million in revolving capacity over a two-year period, fueling the expansion of the Knock Bridge Loan™. Knock says it plans to be a programmatic issuer, driving increased lending capacity and growth and bringing convenience and certainty to home buying and selling.
The transaction, which closed on Aug. 14, generated demand from many established investors in residential mortgage-backed securities, including money managers and hedge funds, the company said. The securitization was 75% prefunded. The 25% funded portion comprised of loans with a 766 WA FICO, 35% WA LTV and 72% WA CLTV.
Knock notes that this issuance builds on its network of institutional capital providers and regional banks, representing an expansion of its funding base. With this new capital in place, Knock says it’s now positioned to significantly scale its lending operations in the quarters ahead.
The Knock Bridge Loan gives homeowners access to the equity in their current home to make a non-contingent offer on their next one, while covering everything from a down payment to debt payoff, home prep and six months of mortgage payments on their current home.
“The fact that this offering was oversubscribed is a powerful endorsement of the Knock Bridge Loan as a stable, reliable investment,” said Knock Co-Founder and CEO Sean Black. “Accessing the bond market not only reinforces investor confidence in our model, but also opens up a new channel of capital we plan to continue tapping into as we expand capacity and make the Knock Bridge Loan available to more lenders nationwide.”
Founded in 2015 to democratize the home-selling experience, Knock works directly with lenders and agents across the U.S. to offer a different financing solution. Unlike traditional bridge loans that are treated as debt and counted against a buyer’s debt-to-income (DTI) ratio, the Knock Bridge Loan eliminates the old home from the equation, helping consumers qualify for a larger mortgage and make a non-contingent offer on their next home. Buyers can purchase, move in and then list their old home on their terms, often after using bridge funds to make improvements and maximize the sale price.
Knock also announced an increase of its maximum bridge loan amount to $1 million from $750,000, expanding purchasing power for homebuyers in higher-priced markets like California and Washington.
Knock is currently available through its relationships with thousands of lenders and agents in 32 states and the District of Columbia. The company has seen a 126% year-over-year increase in funded loans from July 2024 to 2025, fueling the company’s profitability.
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