reAlpha to buy InstaMortgage for $8.5M to expand direct lending

Real estate technology company reAlpha Tech Corp. has closed a deal to acquire lender InstaMortgage Inc. for $8.5 million in a cash-and-stock transaction.

The move will add direct lending capabilities and expand multi-licensing structure to reAlpha’s existing mortgage brokerage operations, the company announced Tuesday.

Founded in 2008, InstaMortgage has originated more than $4 billion in loans over the past five years. Mortgage technology platform RETR shows approximately $240 million in volume over the past 12 months through 56 loan officers.

“This agreement is about building the operating system for modern homebuying,” reAlpha CEO Mike Logozzo said in a statement. “Buyers don’t experience brokerage, lending, and closing as separate categories. They experience one process where clarity and execution matter.” 

Logozzo said that the expectation is for the acquisition to position the company to “further reduce friction across handoffs and deliver a more coordinated experience.”
InstaMortgage is based in California but operates in 32 states, including New York, New Jersey, Illinois and Ohio. The company said it has helped more than 3,500 borrowers secure mortgages.

“reAlpha’s vision for an integrated AI-powered homebuying platform aligns with how we see the market evolving, and we’re excited about what this could mean for borrowers, loan officers, and partners as we work toward closing,” said Shashank Shekhar, founder and CEO of InstaMortgage. 

reAlpha plans to fund the cash portion of the transaction with cash on hand. The companies expect to close the deal in the first half of 2026, pending regulatory approvals.