In a rare bit of positive news during a market turndown, rent-to-own company Landis announced it has raised $40 million U.S. in series B funding.

GV (formerly Google Ventures) led the funding round. Existing investors — including Sequoia Capital, Jay Z’s Roc Nation fund Arrive, the National Association of Realtors’ Second Century Ventures, Operator Partners, Signia Ventures and Team Builder Ventures — also participated.

The round brings Landis’s total funding to $222 million, according to Crunchbase

Landis offers an alternative path to home ownership for those unable to put together a down payment. As mortgage rates have shot up over the last year, “Landis is creating certainty in uncertain times, especially for families who would otherwise be kept out of homeownership,” according to the funding announcement.

For clients who qualify for its program, Landis will buy a house it believes they can afford and then rent it back to them while reserving a portion of each monthly payment toward an eventual purchase. When and if the client decides to buy, they can put that money toward a down payment and take out their own mortgage.

Landis has earmarked $2 million of the funding that it raised in this round to expand its financial coaching program. Its coaches provide one-on-one support to clients as they work towards improving their credit score and save for a down payment.

The company said the coaching is free and that it makes money on the purchase and resale of houses.

Founded in 2018, Landis, now operates in 50 metro markets across 12 U.S. states, all east of the Mississippi river.

The company has grown significantly since its last funding round, which raised $165 million in equity and debt, in July 2021: Its headcount has tripled, while the number of applications to its program has grown sevenfold, according to TechCrunch

Landis did not disclose how its business metrics have trended over recent months, as mortgage rates surged at a record pace to a 20-year high

Real estate companies have been laying off staff left and right this year. In September, Divvy, a startup with a nearly identical business model to Landis, laid off 40 employees, reducing its payroll costs by 12%.

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