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Point

in Shared Equity Agreements from Point Digital Finance, Inc

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Point

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in Shared Equity Agreements from Point Digital Finance, Inc

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Shared Equity Use Case Equity Cash-Out
Investment Range $ $35,000 - $350,000
Investment Range % 10% - 20%

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).

Key takeaways

  • Long contract terms. Point offers contract terms of up to 30 years, which provides homeowners with plenty of time to settle their investment. Other home equity investors have a maximum term of 10 years.
  • Share of home appreciation. Point 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 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 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. Point is only available in 17 states.
  • Poor credit accepted. Even if you have bad or poor credit, you can apply. Homeowners with a credit score as low as 500 are considered for Point.

Point Pros and Cons:

Pros Cons
  • Equity can be used to pay off high interest debt, while bringing down your debt to income ratio.
  • Homeowners who don't qualify for HELOC loans are often approved by Point.
  • Get funds within 15 days.
  • Longer repayment periods.
  • Large investment amounts available.
  • Point records a Deed of Trust and Memorandum of Option on your property. If you default, Point could sell your property to recover its investment.
  • Point adjusts the appraisal of your home by shaving a percentage off the value.
  • There is a "penalty" imposed at the end of your term if you choose to rent the property.
  • Point puts limits on additional debt for home improvements.

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 20% 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.

Point Terms & Requirements
Investment Term Amount
Equity Investment Range 10% - 20%
Equity Investment Range $35000 - $350000

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.

Point Fees
Description
Closing Costs 3% - 5%
Share of Home Appreciation 25% - 40%
Share of Home Value N/A
Origination Fee (%) N/A

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 sell your home or buy them out.

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.
Pros & Cons of Point
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.
  • Maximum contract term of 30 years.
  • Fund amounts of up to $350,000 available.
  • Equity can be used to pay off high interest debt, while bringing down your debt to income ratio.
  • Homeowners who don't qualify for HELOC loans are often approved by Point.
  • Closing costs of up to 5%
  • Point records a Deed of Trust and Memorandum of Option on your property. If you default, Point could sell your property to recover its investment.
  • Point adjusts the appraisal of your home by shaving a percentage off the value.
  • There is a "penalty" imposed at the end of your term if you choose to rent the property.
  • Point puts limits on additional debt for home improvements.
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    Contact

    • Headquarters
    •   444 High St.
      Palo Alto, CA
    •   Visit Site

    About Point

    Message From Point Digital Finance, Inc

    Point allows homeowners to receive cash today in exchange for a portion of their future home appreciation. The Home Equity Investment is an alternative to home equity loans and HELOCs. It comes with monthly payments, more flexible approval criteria than traditional lenders, and consumer protections. Get up to $300K.

    Availability

      Available in 17 states and Washington, D.C.
    • Arizona
    • California
    • Colorado
    • Connecticut
    • Washington, DC
    • Florida
    • Illinois
    • Maryland
    • Massachusetts
    • Michigan
    • Minnesota
    • New Jersey
    • New York
    • North Carolina
    • Oregon
    • Pennsylvania
    • Virginia
    • Washington

    Feature Breakdown

    Closing Costs 3% - 5%
    Credit Score Range 500 - 800
    Employment Statuses Considered
    • Employed Full-Time
    • Employed Part-Time
    • Other
    • Retired
    • Self-Employed
    Immigration Status Considered
    • U.S. Citizen
    • U.S. Permanent Resident
    • Non-Resident
    • Non-Residents Through Entities Incorporated in the U.S.
    Intended Use
    • Investment
    • Primary Home
    • Secondary Home
    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
    • Business Formation Documents
    • Government Issued Photo ID
    • Loan Payoff Statements
    • Proof of Identity
    • Proof of Income
    • Proof of Insurance
    • Proof of Residence
    • Recent Pay Stubs
    • Social Security Number
    • Driver License (or other photo ID)
    Shared Equity Use Case Equity Cash-Out
    Funding Time Range 15 - 45 days
    Investment Range % 10% - 20%
    Investment Range $ $35,000 - $350,000

    Point Community Reviews

     

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