SuperMoney
Point
in Shared Equity Agreements from Point Digital Finance, Inc
Claimed Visit Site

Point

Claimed
in Shared Equity Agreements from Point Digital Finance, Inc
SuperMoney Net Recommendation Score +6  

SUPERMONEY NET RECOMMENDATION SCORE

This product is mostly recommended by SuperMoney users with a score of +6, equating to 3.1 on a 5 point rating scale.

+6

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

Mostly recommended

17 users recommend
2 users are unsure
15 users don't recommend
Cast your vote

Would you recommend Point to your friends?

Thanks for your vote!

You voted: May or may not recommend

Highlights
Community Rating Mostly recommended
Shared Equity Use Case Equity Cash-Out
Investment Range $ $25,000 - $500,000
Investment Range % 0% - 22.5%
Number of Reviews 34

Point Review

Point is offered by Point Digital Finance, Inc, a financial services company founded in 2014 and based in Palo Alto, CA. Point is available in 16 states (and Washington, DC).

Key Takeaways
  • Poor credit accepted. Homeowners with a credit score as low as 500 can qualify with Point.
  • Maximum investment of $500,000. Your actual offer will depend on the value of the home and how much equity you have in the property.
  • Long contract terms. Point offers a contract term of 30 years, which provides homeowners with plenty of flexibility. Most home equity investors have a maximum term of 10 years.
  • Share of home appreciation. Unlike most shared equity investors, Point's return depends on your home's appreciation rather than the home's entire value. 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, Point will also share in the loss.
  • Cash-out only. Existing homeowners can access up to 22.5% of their property's value without taking on debt. Funds can be used for anything, from paying off debt, renovating or retirement.
  • Only available in select states. Point is currently available in 16 states.
Point Pros & Cons
Pros Cons
  • Break free from monthly payments with nothing due for up to 30 years.
  • Typically lower effective APR compared to other shared equity investors.
  • Relaxed qualification criteria (including no DTI requirements) compared to a typical HELOC.
  • Poor credit accepted. Homeowners with a credit score as low as 500 may qualify.
  • Longer repayment periods.
  • Cannot be a manufactured or mobile home
  • It typically takes at least two weeks to fund a shared equity agreement with Point
Point FAQ

How does the Point product work?

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

The Point 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 is designed for homeowners who need cash for reasons such as home improvement project or to eliminate debt.

Point will have a lien on the property (just like a mortgage does), but since it's not a loan you won't be paying Point interest or a monthly payment. Instead Point gets paid a share of your home's value when the contract ends, which typically occurs when you decide to sell your home or buy Point out. For example, Point might provide you with a cash investment today equal to 10% of your home's current value in exchange for 16% of your home's future value when you sell.

How much will Point Digital Finance, Inc invest into a shared equity agreement?

The Point program offers equity investments that range from 0% up to 22.5% of a property's market value. As you might expect, Point Digital Finance, Inc has a cap on the amount of funding they will invest in a single home. The most Point Digital Finance, Inc can invest in a single home is $500,000.

Point Terms & Requirements
Investment Term Amount
Equity Investment Range 0% - 22.5%
Equity Investment Range $25,000 - $500,000

What are the costs associated with Point?

Unlike loans, the cost associated with an Point Digital Finance, Inc investment is not based on an interest rate. There are no monthly payments or accrued interest. Instead, Point Digital Finance, Inc shares in the future value of your property and typically only receives a return on its investment when you sell your home or decide to buy Point Digital Finance, Inc out. The percentage of your home’s value that Point Digital Finance, Inc shares when the contract ends is larger than the percentage of Point Digital Finance, Inc's investment in your home. Therefore, Point Digital Finance, Inc will make a profit if your home’s value does not change. If your home’s value increases, Point Digital Finance, Inc will make a larger profit. If the value drops, Point Digital Finance, Inc will make a smaller profit, or might incur a loss.

The Point program includes an origination fee equal to 3% of the Unlock investment. This will reduce the amount of cash that you receive at closing. There are also expenses that are typical for any real estate financing transaction, such as appraisal, inspection and closing costs.

Unlock’s profit on its investment is subject to an annualized cost limit (typically 18%), Your cost for the Unlock money can never exceed the limit. In many cases, and depending on how long the contract remains outstanding, the cost will be significantly lower.

Point Fees
Description
Closing Costs (%) 3% - 5%
Share of Home Appreciation 15% - 40%

What are the terms for a shared equity investment via Point Digital Finance, Inc?

You can use the funds provided by Point for up to 30 years. After 30 years, you will need to settle up with Point Digital Finance, Inc, either by selling the home or buying Point Digital Finance, Inc out. You can finance a buyout with your cash, refinancing your mortgage, or by partnering with Point Digital Finance, Inc for another term.

To buy Point Digital Finance, Inc 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 Point Digital Finance, Inc?

Point will typically fund a deal within 45 days.

What types of property does Point Digital Finance, Inc consider?

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

  • Primary home
  • Secondary homes and vacation properties.
  • Investment properties.
SuperMoney Disclosure: SuperMoney.com is an independent, advertising-supported service. The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. Read more...
Editorial Disclaimer: Editorial and user-generated content on this page is not provided or commissioned by the issuer. Opinions expressed here are the author’s alone and have not been approved or otherwise endorsed by any financial institution, including those that are advertising partners.

Message From Point Digital Finance, Inc

“Point allows homeowners to unlock up to $500K of their equity in exchange for a portion of their future home appreciation. Our Home Equity Investment (HEI) comes with no monthly payments for up to 30 years and an effective APR lower than that of other home equity investors’ products. When the contract ends, the buyback cost is the original investment plus a percentage of the home's increase in value. If the home has lost value, Point will share in the loss truly aligning us with homeowner interests. Our HEI is typically easier to qualify for than a traditional HELOC and comes with built in effective APR caps to protect the homeowner. See how much you qualify for in just minutes.

Contact

Other Services by Point Digital Finance, Inc

Availability

  Available in 16 states and Washington, D.C.
  • Arizona
  • California
  • Colorado
  • Washington, DC
  • Florida
  • Illinois
  • Massachusetts
  • Maryland
  • Michigan
  • Minnesota
  • North Carolina
  • New Jersey
  • New York
  • Oregon
  • Pennsylvania
  • Virginia
  • Washington

Feature Breakdown

Closing Costs (%) 3% - 5%
Credit Score Range 500 - 850
Employment Statuses Considered
  • Other
  • Employed Full-Time
  • Employed Part-Time
  • Self-Employed
  • Retired
Immigration Status Considered
  • U.S. Citizen
  • U.S. Permanent Resident
  • Non-Resident
  • Non-Residents Through Entities Incorporated in the U.S.
Intended Use
  • Primary Home
  • Secondary Home
  • Investment
Joint Loan Applications Accepted
  • Individual Applications
Military Status
  • Active Duty Military
  • Non-Military
  • Veterans
  • Military Dependent
Minimum Age 18
Supported Income Types
  • Direct Deposit (W2, SSA, SSDI)
  • Cash
  • Payroll Check or Prepaid Card
  • 1099 Misc. Income
  • Tax Returns
Verification Documents Required
  • Driver License (or other photo ID)
  • Recent Pay Stubs
  • Proof of Income
  • Loan Payoff Statements
  • Proof of Identity
  • Proof of Residence
  • Proof of Insurance
  • Business Formation Documents
  • Government Issued Photo ID
  • Social Security Number
Shared Equity Use Case Equity Cash-Out
Funding Time Range 15 - 45 days
Investment Range % 0% - 22.5%
Investment Range $ $25,000 - $500,000

Point Community Reviews

 

Would you recommend Point to your friends?

Before we publish your vote:

Please explain your vote by sharing your experience.

Writing a review increases the credibility of your vote and helps your fellow users make a better-informed decision.

Please write a review to submit your vote
(will require moderator approval)

SUPERMONEY NET RECOMMENDATION SCORE

This product is mostly recommended by SuperMoney users with a score of +6, equating to 3.1 on a 5 point rating scale.

+6

Recommendation score measures the loyalty between a provider and a consumer. It's at +100 if everybody recommends the provider, and at -100 when no one recommends.

sorted by