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 17 states (and Washington, DC).

• Long contract terms. Point offers contract terms of up to 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 25% to 40% of the home's increase in value. If your home has lost value, Point will also share in the loss.
• Equity cash-out. Point allows homeowners to access up to 22.5% 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. Point is only available in 17 states.
• Fair credit accepted. If you have a credit score of 600 or higher, you may qualify for a shared equity agreement with Point.

How does the Point 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 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 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 Point Digital Finance, Inc a monthly loan payment with interest. Instead, if your home goes up in value, Point Digital Finance, Inc share in the gain; if it goes down, they share in the loss.

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

The Point program offers equity investments that range from 10% 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. For the Point program, the most Point Digital Finance, Inc can invest in a single home is $350,000.

What are the costs associated with Point?

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, Point Digital Finance, Inc shares in the change in value of your property. If your property value goes up, Point Digital Finance, Inc gets a share. If the value drops, Point Digital Finance, Inc 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 Point program, at the time your home is sold Point Digital Finance, Inc will receive an amount that ranges from 25% up to 40% of any appreciation or depreciation in the home’s price.

The Point program includes a closing fee that ranges from 3%, up to 5% of their investment.

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 either return the investment, sell, refinance, or try to partner with Point Digital Finance, Inc for another term. Once the contract term ends you can return the remaining investment, sell, refinance, or partner 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.