Joined Oct 2007
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Home Equity Agreement?
February 15, 2025 at
02:55 AM
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How it works
The homeowner receives a lump sum of cash from an investor
The homeowner gives the investor a lien on their home
The homeowner repays the investor in full when they sell their home or at a predetermined time
Benefits
Homeowners can access their equity without taking on debt
There are no monthly payments or interest
Homeowners can use the cash for purchases, debt, or home upgrades
When to consider
If you have irregular income or are self-employed
If you want to avoid monthly payments
If you need a large sum of money right away
If you want to avoid taking on more debt
Risks
The homeowner must repay the investor in full
If the homeowner doesn't meet the terms of the agreement, the investor can claim the home and force a sale
No monthly payments. Because Point's HEI is equity financing for homeowners, there are no monthly payments. Instead, HEIs are repaid in a single payment at any time before the end of the term. Repayment is based on your home appreciation.
No income requirements. Income and DTI are not considered during the Home Equity Investment application process. This makes an HEI ideal for self-employed entrepreneurs, retirees on a fixed income, and homeowners experiencing periods of unemployment or financial shortfalls.
Capped repayment amount. You want your home to appreciate – and so do we. However, in the event that your home appreciates a lot, Point's share is capped based on an annual rate, compounded monthly.
Transparent offers. It takes under 60 seconds to complete a no-obligation prequalification and see a personalized offer, including multiple home appreciation scenarios. All Point homeowners can book a time with a home equity specialist to review their pricing and answer all their questions.
Property value range. Point's HEI considers properties with values ranging from $140,000 to $4,500,000.
Poor credit accepted. Homeowners with a credit score as low as 500 can qualify with Point's Home Equity Investment (HEI).
Maximum investment of $500,000. Your actual offer will depend on your home's value and how much equity you have in the property.
Long contract terms. Point's Home Equity Investment (HEI) offers contract terms of up to 30 years, which provides homeowners with plenty of flexibility.
Share of home appreciation. When the contract ends, the buyback cost will be the original investment plus a share of the home's increase in value.
Cash-out only. Existing homeowners can access up to 20% of their property's value.
Only available in select states. Point's Home Equity Investment (HEI) is currently available in a limited number of states.
reverse mortgages and this offer both can take a large chunk of your equity.