Last Updated: 06/17/2025
EquityChoice
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Last Updated: 06/17/2025
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Highlights
Credit Score Range
Starting at 680
Funding Range $
$85,000 - $500,000
Funding Range %
3% - 16%
Contract Term
10
EquityChoice Review
EquityChoice is offered by Nexera Holding LLC dba Newfi (NMLS #1231327), a direct lender founded in 2014 and based in Emeryville, CA. EquityChoice are available in 20 states.
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
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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?
The EquityChoice program offers equity investments that range from 3% up to 16% of a property's appraised value. As you might expect, Nexera Holding LLC dba Newfi has a cap on the amount of funding they will invest in a single home. The most Nexera Holding LLC dba Newfi can lend in a single home is $500,000.
| Investment Term | Amount |
| Funding Range (%) | 3% - 16% |
| Funding Range ($) | $85,000 - $500,000 |
| Maximum Debt-to-Income Ratio | 45% |
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.| Description | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Origination Fee (%) | 3% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share of Home Value | Up to 50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
What are the terms for a shared equity investment via Nexera Holding LLC dba Newfi?
While this is not meant to be a pre-qualification, at a minimum you must:
- 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.
How long does it take to close a deal with Nexera Holding LLC dba Newfi?
EquityChoice will typically fund a deal within 30 days.
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?
Newfi was founded in 2014, it is a well-established company that has been in business for 12 years.
Unfortunately, we don't have sufficient community reviews to provide a reliable rating of their user experience and customer service.
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