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  Noah Home Equity Sharing

Noah Home Equity Sharing

in Shared Equity Agreements from Noah

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Noah Home Equity Sharing

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in Shared Equity Agreements from Noah

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Highlights
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Shared Equity Use Case Equity Cash-Out
Investment Range $ $30,000 - $350,000
Investment Range % 5% - 20%

Noah Home Equity Sharing Review

Noah Home Equity Sharing is offered by Noah, a financial services company founded in 2016 and based in San Francisco, CA. Noah Home Equity Sharing is available in 5 states across the USA.

Key Takeaways
  • You must settle the investment within 10 years. Once the contract term ends you'll need to return the entire investment. Take this into account if you plan to stay in your home for longer than 10 years.
  • Share of home appreciation. Noah Home Equity Sharing bases its return on how much a property increases in value over time. When the contract ends, the buyback cost will be the original investment plus 15% to 40% of the home's increase in value. If your home has lost value, Noah Home Equity Sharing will also share in the loss.
  • Equity cash-out. Noah Home Equity Sharing allows homeowners to access up to 20% of the property's value without taking on debt. However, it cannot be used toward the down payment of the property that secures it.
  • Only available in select states. Noah Home Equity Sharing is only available in 5 states.
  • Fair credit accepted. If you have a credit score of 600 or higher, you may qualify for a shared equity agreement with Noah Home Equity Sharing.
Noah Home Equity Sharing Pros & Cons
Pros Cons
  • Instead of monthly payments or interest, you share a portion of your home’s future appreciation.
  • No prepayment penalties.
  • Get funds within 15 days.
  • Considers homeowners with a debt-to-income ratio of up to 60%.
  • Allows for a loan-to-value ratio of up to 80%, which is high compared to other shared equity investors.
  • Large investment amounts available.
  • The cash amounts are lower than what is typically available with a HELOC or home equity loan.
Noah Home Equity Sharing FAQ

How does the Noah Home Equity Sharing product work?

A shared equity agreement (also called a shared appreciation agreement or shared equity contract) is essentially a way to sell a small fraction of the equity in your home to an investment company.

As a home equity loan alternative, the Noah Home Equity Sharing 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. This product primarily targets the home-equity-rich who are in need of cash for reasons such as a home improvement project or to eliminate debt.

The transaction is secured like a loan but you won't be paying Noah a monthly loan payment with interest. Instead, if your home goes up in value, Noah share in the gain; if it goes down, they share in the loss.

How much will Noah invest into a shared equity agreement?

The Noah Home Equity Sharing program offers equity investments that range from 5% up to 20% of a property's market value. As you might expect, Noah has a cap on the amount of funding they will invest in a single home. For the Noah Home Equity Sharing program, the most Noah can invest in a single home is $350,000.

While Noah Home Equity Sharing is not a loan product, the maximum "loan to value" rate is 80%. That means their investment in the property cannot exceed 80% of its market value. Let's say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a shared equity investment of up to $60k.

Noah Home Equity Sharing Terms & Requirements
Investment Term Amount
Equity Investment Range 5% - 20%
Equity Investment Range $30000 - $350000
Maximum Debt-to-Income Ratio 60%
Maximum Loan to Value Ratio 80%

What are the costs associated with Noah Home Equity Sharing?

Unlike loans, the costs associated with shared equity investments are not based on an interest rate. There are no monthly payments or accrued interest. Instead, Noah shares in the change in value of your property. If your property value goes up, Noah gets a share. If the value drops, Noah shares in the losses. They only get their money back when you sell your home – and they typically only make a profit if you also make a profit.

Under the Noah Home Equity Sharing program, at the time your home is sold Noah will receive an amount that ranges from 15% up to 40% of any appreciation or depreciation in the home’s price.

The Noah Home Equity Sharing program includes an origination fee equal to 3% of their investment.

Noah Home Equity Sharing Fees
Description
Closing Costs N/A
Share of Home Appreciation 15% - 40%
Share of Home Value N/A
Origination Fee (%) 3%

What are the terms for a shared equity investment via Noah?

You can use the funds provided by Noah Home Equity Sharing for up to 10 years. After 10 years, you will need to either sell your home or buy them out.

To buy Noah out, you would need to pay back their original investment plus or minus their share of your home’s change in value.

How long does it take to close a deal with Noah?

Noah Home Equity Sharing can fund a deal in as little as 15 days.

What types of property does Noah consider?

Shared equity investors often have restrictions on the type of properties they will invest in. Noah Home Equity Sharing will consider shared equity agreements secured by the following property types:

  • Primary home
  • Secondary homes and vacation properties.
  • Investment properties.
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Contact

  • Headquarters
  •   576 Sacramento Street
    San Francisco, CA 94111
  •   Visit Site

About Noah Home Equity Sharing

Message From Noah

Our innovative equity sharing model is a debt-free alternative to traditional home equity loans and HELOCs. By partnering with homeowners, we offer homeowners in select metro areas across the United States upfront financing in exchange for a share in a percentage of their home?s future appreciation or depreciation.

Availability

  Available in 5 states
  • California
  • Colorado
  • Oregon
  • Utah
  • Washington

Feature Breakdown

Origination Fee (%) 3%
Credit Score Range 600 - 850
Employment Statuses Considered
  • Employed Full-Time
  • Employed Part-Time
  • Other
  • Retired
  • Self-Employed
  • Unemployed
Immigration Status Considered
  • U.S. Citizen
  • Non-Resident
Intended Use
  • Investment
  • Primary Home
  • Secondary Home
Maximum LTV 80%
Military Status
  • Active Duty Military
  • Military Dependent
  • Non-Military
  • Veterans
Minimum Age 18
Supported Income Types
  • 1099 Misc. Income
  • Cash
  • Direct Deposit (W2, SSA, SSDI)
  • Payroll Check or Prepaid Card
  • Tax Returns
Verification Documents Required
  • Proof of Identity
  • Proof of Income
  • Social Security Number
  • Proof of citizenship/residence (Green Card)
Shared Equity Use Case Equity Cash-Out
Funding Time Range Starting at 15 days
Investment Range % 5% - 20%
Investment Range $ $30,000 - $350,000

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