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With Point’s HEI, you can access lump sum cash amounts of between $25,000 and $500,000, depending on your home’s value and equity. There are no restrictions on what you use the funds for.
One of the key advantages of Point’s HEI product is the absence of monthly payments. Also, while the agreement has a 30-year term, you can repay it in full at any time without incurring any penalties.
Point’s HEI is suitable for people who can’t qualify for traditional home equity products—like home equity loans or HELOCs—due to credit score or income limitations. Unlike many other products, Point's HEI has no minimum income requirement and only needs you to have a credit score of at least 500.
The program is also ideal for homeowners who need access to a large sum of money for a specific goal—such as home renovations or education expenses—without the burden of monthly repayments.
Point's main offering is a HEI that functions as a shared equity agreement. Essentially, you receive a lump sum from the company and then agree to share a predetermined percentage of your home’s equity at the end of 30 years or when you sell your home, whichever comes first.
This unique arrangement eliminates the need for monthly repayments to Point. However, the final amount you pay depends on your home's value at the exit point. If your home's value appreciates, Point shares in those gains. Conversely, if your home's value falls, Point will also share the losses, so the cost to repurchase your equity may be lower.
Highlights
To qualify for Point's HEI, your home must
The application process is easy. Here’s a step-by-step guide:
Point doesn’t charge any application fees. However, there’s a 3.9% processing fee (or a minimum of $1,000) plus several third-party costs, like home appraisal and escrow. Point will deduct these costs before it disburses funds to you.
While Point’s HEI has a 30-year term, you’re also free to pay back the company before the expiry of this term. When you repay, you'll return the original amount received plus a share of your home's appreciation at the time of repayment. Point’s website provides a tool that can help you estimate your HEI costs based on your home’s value, its appreciation, and the year of exit.
Notably, Point also offers a key safeguard known as the Homeowner Protection Cap. This limits the maximum amount you can repay to Point, regardless of how much your home's value appreciates.
That said, Point has also implemented several measures to protect itself. For example, each HEI has an “appreciation starting value.” This is essentially a risk-adjusted home value that represents the figure at which Point starts sharing your home’s appreciation.
For example, if your home’s value is appraised at $400,000, Point may place an appreciation starting value of $320,000 on it. According to the company, this measure allows it to offer maximum flexibility to homeowners while managing risks such as major short-term downturns.
Point offers customer support by phone at 888-764-6823 from Monday to Friday, 8am-6pm PT. You can also use the contact form on the website to send a message.
If you don’t want to speak to Point directly, the FAQ sections on the website answer some of the most common questions about the HEI product and the company in general.
Other helpful resources on Point’s website include a blog featuring insightful articles on various home-related topics. You’ll also find calculators to help you estimate the costs of different home equity products.
Point's home equity investment (HEI) program offers a unique alternative to traditional home equity loans and HELOCs.
It provides a lump sum of cash upfront with no monthly payments, ever. In exchange, Point gets a share in your home’s future appreciation. There are no minimum income requirements, and it accepts applicants with credit scores as low as 500.
Point’s HEI doesn’t have any monthly repayments. Additionally, qualifying for this product is easier than traditional home equity products. Point focuses on the value of your home rather than your income level, and you only need a minimum credit score of 500.
You can prequalify online and receive an initial offer in under a minute. Once your application is approved, you can typically close on your HEI in as few as three weeks.
Yes. Point offers a great deal of flexibility regarding repayment. You can repay your HEI any time during the 30-year term with no prepayment penalties.
While Point can foreclose your home if you default on your agreement, it’s usually the last option. To minimize this risk, Point performs extensive due diligence before entering into an agreement with you. It will also work with you to prevent any default and will notify you before it takes any major action.
444 High Street, Fl 4
Palo Alto, CA 94301
This review was compiled by visiting Point’s website and reading reviews on the Trustpilot website.
