About Noah Review

IMPORTANT: Noah has ceased operations and transferred all business to another company. Check out these other Home Equity Investment companies.

Noah Home Equity Synopsis 

Review Summary: Noah is a home equity investment company that offers funding for existing homeowners who need an infusion of cash. It also has a program for new homeowners who are trying to buy a house but don’t have enough money for a 20 percent down payment. The funding requires no monthly payments during the investment term. Noah receives a percentage share of the home’s value when the term is over or if the homeowner decides to settle the investment early.  

Recommended for: Homeowners who need an infusion of cash but can’t afford to take on a monthly payment or more debt who live in one of the nine states or the District of Columbia where Noah is licensed.  

Pros and Cons of Noah Home Equity

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Overview 

Noah is a home equity sharing company that offers home equity funds and down payment assistance to new and existing homeowners.   

Its home equity investment program, which Noah calls Home Equity Access, works by giving homeowners money in exchange for a share of the home’s future value. The funding requires no monthly payments and does not count as debt against the homeowner. 

The homeowner pays back a percentage of the home’s value at the end of the term, which is 10 years. Homeowners can settle early without prepayment penalties.  

The Down Payment Assistance program works by giving new homeowners funds so they can have 20 percent to put down on a new home. Noah will provide up to 15 percent of the purchase price.  

The down payment funds provided by Noah work the same way as a home equity investment. After the 10-year period, or any time before, the homeowners pay Noah back by selling the home, through savings, or by refinancing the home.  

Noah’s return on the investment fluctuates with the market. If the home increases in value, Noah will earn a return on its investment. While if it drops in value, Noah will share in those losses.  

Noah also provides homeowners that it works with the option of utilizing its Homeowner Protection Program. This program is designed to provide financial help to homeowners during the term of its investment in the event the homeowners fall into financial difficulties and have an emergency expense come up.  

Noah Home Equity Investment Process 

For homeowners interested in working with Noah, here is an overview of the investment process:  

• Get pre-approved and receive estimate. The first step is providing basic information about your home and financial situation in order to be preapproved for a home equity investment. At this point, you will also find out the maximum investment.  
• Complete application. If you receive pre-approval and you are happy with the investment amount, the next step is to complete the official application.  
• Schedule home appraisal. A home appraisal will be scheduled in order to assess the value of your home. This is one of the factos that plays into Noah’s Share percentage.  

• Sign documents. Once the application is approved, documents are signed by both parties.  
• Receive funds. Once the documents are received, the homeowners will receive their funds. According to Noah, the whole process can take as little as 15 days.  

Noah Rates and Fees 

While homeowners do not have to make payments during the 10-year term, there are fees associated with a Home Equity Investment with Noah. This includes the following:  

• Servicing fee: $2,000 or 3% of investment amount (whichever is higher) 
• Title and escrow: between $520 and $750 
• Title insurance: $400 
• Home appraisal: $299 
• Affordable housing fees: between $150 and $225 
• Notary fee: $100 
• Recording fees: Charged on a state or county basis 

Service fees may also be paid during the life of the investment when certain services are requested.  

Noah says that the servicing fee as well as the fees paid to third parties are taken from the investment funds during closing. 

Noah Company Information 

Noah was founded in 2016 by Sahil Gupta. It went by the name Patch Homes until 2020.  

States Serviced by Noah 

Noah offers its financial services the following states:  

• California 
• Colorado 
• District of Columbia 
• Massachusetts 
• New Jersey  
• New York 
• Oregon  
• Utah 
• Virginia 
• Washington 

All reviews updated as of 11/1/22.