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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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Community Rating

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Investment Range % 5% - 20%
Investment Range $ $30,000 - $350,000
Share of Home Appreciation 15% - 40%
Share of Home Value N/A
Shared Equity Use Case Equity Cash-Out

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.

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 Equity Investment $350,000
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.
Pros & Cons of Noah Home Equity Sharing
Pros Cons
  • Investment properties are eligible for funding.
  • Secondary homes are also eligible for funding.
  • No interest or monthly payments.
  • No impact on your credit report.
  • Fund amounts of up to $350,000 available.
  • Instead of monthly payments or interest, you share a portion of your home’s future appreciation.
  • No prepayment penalties.
  • Origination fees of up to 3%
  • Maximum contract term of 10 years.
  • The cash amounts are lower than what is typically available with a HELOC or home equity loan.
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    Contact

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

    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.

    About Noah Home Equity Sharing

    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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