Hey there, fancy another financial detour? Let’s flip open the world of home equity investments and zoom in on one particular provider – Point. The aim is to have a bite of the Home Equity Investment (HEI) apple, which might just be the next best thing for you if steady income and a sky-high credit score aren’t particularly your jam. In this neck of the woods, no one’s taking a lien on your castle, or expecting you to repay in monthly instalments. Instead, someone with deep pockets swoops in and grabs a slice of your home’s equity in exchange for a handsome upfront payout – all without placing a monthly drain on your wallet. Alright, enough talk, let’s get into the nitty-gritty!
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## BEST HOME EQUITY OPTION WITHOUT AN INCOME REQUIREMENT
Flush your worries of proving a stable income down the drain! A [Point home equity investment](/pr/scaa64f8cd24?ap_referrer=https%253A%252F%252F%252Fpoint-home-equity-review%252F) rolls with the punches as you scoop up the cash right away, sans tough requirements for home equity loans or cash-out refinancing.
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## POINT HOME EQUITY: ADVANTAGES AND DRAWBACKS
**Pros:**
– Waving goodbye to monthly payments
– No need for a regular paycheck
– Chance to buy back your rubber duck – I mean, home’s equity!
**Cons:**
– Sharing a chunk of your home’s equity
– Your crib is appraised with a pinch of salt
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### ADVANTAGES EXPLAINED
#### NO MONTHLY PAYMENTS
A Point home equity investment (HEI) is a different ball game from your run-of-the-mill home equity loan or home equity line of credit (HELOC). The former is like the neighborhood lemonade stand, selling the lemonade (equity) today with promise of a payoff (fixed portion of home value) later, instead of juggling regular monthly payments.
After shaking hands with Point and receiving your lump sum, a contract lands on your table specifying that Point gets a share of your home’s value after 30 years or when you boot your home out the door, whichever comes first. What’s more, you can also call it quits early by buying back your equity, depending on your home value at that time. Sweet deal, right?
#### NO INCOME REQUIREMENT
Here’s the deal: Point doesn’t want proof of your salary stubs for its HEI scheme. Quite a contrast to home equity loans or HELOCs, don’t you think? Those cheetahs usually chase you for proof of steady income before giving a nod.
Weathering the storm of securing a home equity loan or HELOC with a low credit score [/how-to-get-a-home-equity-loan-with-bad-credit/] can be an uphill climb. But with Point, getting your foot in the door starts with a credit score that’s as low as 500 – a far cry from 650 or above with most other home equity products.
Dealing with Point isn’t technically forking over a loan, but rather selling a slice of your home. So, no need to fret about it denting your credit score or messing up your debt-to-income ratio.
#### OPTION TO REPURCHASE YOUR EQUITY
The sun always rises after the storm. If your financial weather improves, you can opt to exit the agreement earlier and buy back from Point.
The payback depends on the present value of your property. If the property price hits the roof, Point gets a share of the profit. But if prices plummet, Point bears a slice of the loss, which might mean you fork out lower than the initial payout.
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### DRAWBACKS EXPLAINED
#### YOU GIVE UP PART OF YOUR HOME’S EQUITY
Opting for a Point home equity investment has a string attached: you’re agreeing to share a slice of your castle’s equity. It caps your gains if your home’s market price shoots up.
Traditional home equity loans might lend you a lump sum, but you retain the full equity in your home. While Point doesn’t sneak into your home title, an equity-sharing agreement means it takes home a portion of any profit from price appreciation. Depending on how you shuffle the deck, you may have to repay more than the lump sum received if the home’s value skyrockets.
#### DISCOUNTED APPRAISAL VALUE
When you put your application on Point’s table, it runs an appraisal on your home but slaps 20% to 25% off from the market rate. This number-crunching safety net shields Point from real estate market swings and influences the amount of equity they’re entitled to.
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Eager to know what else Point has to offer?
## POINT HOME EQUITY PRODUCTS
Making waves right now with just the HEI, Point is, nonetheless, warming up to welcome waiting-list takers for its upcoming SEED down payment program. They’re steering clear of any home equity loans or HELOCs.
### HOME EQUITY INVESTMENT
With Point’s HEI, you can get straight cash in return for a slice of your home’s equity. Curious about the exact equity percentage? Sit tight, a Point representative’s got you covered on that one. You’ve got near three decades to either let Point take its share or take it back if you plan to sell your home or exit stage early.
### SEED DOWN PAYMENT INVESTMENT
Point’s hinting at launching its SEED down payment investments engineered for greenhorn property buyers. In this scenario, Point stick their neck out to fund your down payment and, in return, take a fraction of your future equity. It’s cut from the same cloth as HEI, but considers new property buyers.
However, ride this wave with your eyes wide open. A leap in property value and you could owe more than you imagined. The SEED program hasn’t set a launch date yet.
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## POINT HOME EQUITY PRICING
Remember, an HEI with Point isn’t a loan, so you can wave goodbye to interest payments. But there’s no such thing as a free lunch, so keep a heads up for fees:
– $45 document release fee when Point drops its claim
– $30 for wrapping up a payoff demand statement
– $250 fee if you need changes made to the home title
– $500-$800 for appraisal (closing cost)
– $500-$3,500 administrative fee if you default
– 3.9% processing fee on the lump sum (minimum of $1,000)
– And, of course, additional third-party closing costs
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## POINT HOME EQUITY: COMPANY FINANCIAL STRENGTH
Moody’s has its finger on the pulse and rates Point as B1. Now, that’s a bit of a yellow flag indicating potentially high credit risk.
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## POINT HOME EQUITY AVAILABILITY
### AVAILABILITY
Point has opened its doors to homeowners in Washington, D.C., and these 26 states:
_Every state listed_
### CONTACT INFORMATION
Want to chat it out with Point? Ring in at 1-(888) 764-6823 from Monday–Thursday, 6 a.m.–6 p.m., Friday 6 a.m.–4 p.m. Or fire off your questions on their [contact form](https://point.com/contact) for a reply from one of their reps.
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## USER EXPERIENCE
User reviews sound a fanfare for the ease of using Point’s services online. The application process—including pre-approval for an HEI—can be wrapped up digitally. More so, Point has stocked its website with an array of educational material, shedding more light on the difference between HEIs, home equity loans, and HELOCs.
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## POINT HOME EQUITY CUSTOMER SATISFACTION
Point’s got customers singing praises with an average rating of 4.28 out of 5 stars [on BBB](https://www.bbb.org/us/ca/palo-alto/profile/real-estate-investing/point-digital-finance-inc-1216-222599/customer-reviews), and an A+ BBB rating. Most customers sing a happy tune, lauding Point staff for their help through the application process. But on the flip side, a few others have hit a snag when trying to buy out their equity before the contract’s full term.
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## FREQUENTLY ASKED QUESTIONS ABOUT POINT HOME EQUITY
### WHAT IS A POINT HOME EQUITY INVESTMENT?
A Point home equity investment rolls out an upfront cash payment to you in return for a slab of your home’s equity. Unlike classical home equity loans where you put your equity as collateral, with HEI, you could owe more or less depending on whether your property’s price rises or falls by contract’s end.
### IS POINT LEGITIMATE?
Since making its debut in 2014, Point has earned its stripes and even managed to secure BBB-accreditation. It’s also garnered around 200 customer reviews on the BBB site, so yes, they’re a legit home equity company.
### HOW LONG DOES IT TAKE FOR POINT TO APPROVE AN HEI?
The time it takes from dotting the i’s on your application to feeling that chunk of cash in your hand varies. But Point gets the ball rolling with a pre-approval online, with instant eligibility results.
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## HOW WE EVALUATED POINT HOME EQUITY INVESTMENTS
Our deep dive into Point included:
– Requirements to file an application
– The fine print on terms and fees
– The worth and payout against traditional home equity loans
– A pulse check on customer feedback
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## MONEY’S SUMMARY OF POINT HOME EQUITY
Trading a slice of your home’s equity [/how-to-build-equity-in-a-home/] for an upfront payout can be a winning move if you’re scouting for quick funds without monthly payments, or if home equity loan options have slammed the door shut on you. With a Point HEI [/pr/scaa64f8cd24?ap_referrer=https%253A%252F%252F%252Fpoint-home-equity-review%252F], though, you’re parting with some of your home’s equity, plus the appraisal value is dialed down.
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**Looking for another way to make your home equity work for you? Why not give Rocket Mortgage (NMLS #3030) a whirl?**
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Hopefully, this human-like, tongue-in-cheek, informative piece has shed some light on Point home equity investments for you. Now, armed with everything you need, you’re ready to decide if it’s a good fit for your financial scenario. Catch you on the flip side!