EquityChoice

Key Takeaways

• Good credit required. You will need a credit score of at least 680 to qualify for EquityChoice.
• Current Fixed Rate of 4.5%/4.839% APR. See terms and conditions that apply to any Shared Appreciation amounts you may owe on your Newfi EquityChoice Loan.
• Mortgage Safeguards. Unlike other shared equity or co-investment products, EquityChoice is truly a mortgage. As a mortgage, the lender must abide by standard loan terms; therefore limiting how much you can owe no matter how much or fast your home appreciates (resulting in total costs that may be lower than other home equity sharing products).
• Maximum investment of $500,000. Your actual offer will depend on your home's value and how much equity you have in the property.
• 10-year term. The loan term is for 10 years. EquityChoice is a subordinate lien where you don’t owe any payments until the end of the loan term.
• Cash-out only. Existing homeowners can access up to 16% of their property's value.
• Only available in select states. EquityChoice is currently available in a limited number of states.

EquityChoice Pros & Cons

EquityChoice FAQ

How does the EquityChoice product work?

EquityChoice is a shared appreciation mortgage, which is an equity investment alternative. It is a new type of residential mortgage that does not require monthly payments, ever. The EquityChoice product allows you to tap into the equity in your home without the monthly payments that come from a traditional home equity loan or line of credit.

How much will Nexera Holding LLC dba Newfi invest into a shared equity agreement?

What are the costs associated with EquityChoice?

As with most mortgages, you can expect to pay an origination fee and customary closing costs associated with a mortgage transaction. Additional out-of-pocket costs include fees for property appraisal and an inspection, which are third-party fees and not lender costs.

What are the terms for a shared equity investment via Nexera Holding LLC dba Newfi?

• be a homeowner with an existing first lien mortgage
• reside in the property as your primary residence for at least 2 years
• have sufficient equity, approximately 50% or greater, built in your home.
• have access to liquid reserves, assets, or income to satisfy the loan requirements.
• have a FICO credit score of 680+.
While the above is not a commitment to lend and is subject to change, it provides the minimum eligibility criteria.

The loan term is for a contract term of 10 years. EquityChoice is a subordinate lien where you don’t owe any payments until the end of the loan term. At that time, you’ll make a single “balloon” payment which includes the initial amount borrowed, interest that compounds monthly at a “below market” fixed rate, and a share of your home’s future appreciation, depending on how much was originally borrowed and how much your home appreciates.

How long does it take to close a deal with Nexera Holding LLC dba Newfi?

What types of property does Nexera Holding LLC dba Newfi consider?

EquityChoice is primarily for homeowners with the following property types:

• Primary home

Is Newfi a legit company?