About Point

Point Synopsis 

Review Summary: Point offers home equity investments for current homeowners who need an infusion of cash for a variety of reasons. It also has a program for new homeowners in which Point will provide up to 15% of the 20% down payment required, if the homeowner is able to cover the remaining. It also offers a Home Equity Line of Credit (HELOC). 

Recommended for: Point is recommended for homeowners who need a large infusion of cash, own a home with a large amount of equity, don’t want to take on more debt, and have below-average credit. The homeowners must live in one of the states serviced by Point.  

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Overview 

Point offers two investment options and one loan option for new and existing homeowners.  

Its flagship product is the Home Equity Investment (HEI). With a home equity investment, Point gives homeowners investment funds, and in exchange, it receives its investment back plus a percentage of the home’s appreciation at the end of the 30-year term or when the home is sold, whichever comes first.  

Homeowners do not make any monthly payments during the contract period. 

Point typically invests 15-20 percent of the home’s value, and the average investment it makes is approximately $100,000, according to TechCrunch.  

New homeowners who are trying to come up with a 20 percent down payment might be able to take advantage of Point’s SEED Investment. With a SEED Investment, Point will give homeowners up to 15 percent toward their down payment. 

Point also offers a Home Equity Line of Credit (HELOC) to homeowners in need of cash.   

Point Home Equity Investment Process 

If you are interested in working with Point, here is the process you can expect:  

• 1. See if your home qualifies and get an estimate. This is the prequalification process. Point will preapprove or deny you, and let you know how much you could get in under a minute.  
• 2. Talk to a Point home equity expert. This is your chance to ask all the questions you have about home equity sharing. 
• 3. File an application. Fill out the application, which will be done online, and upload any required documents. 
• 4. Get a home appraisal. An appraisal is necessary so that Point will know what the starting home value is. This will be done with a third-party appraiser.  
• 5. Finalize offer. Once the appraisal is done, Point will finalize your offer.  
• 6. Sign closing documents. Point will send a notary to you to get all necessary documents signed.  
• 7. Receive funds. The funds will be transferred into your account electronically. Point will deduct a transaction fee, an appraisal fee, and an escrow fee.  
• 8. Settle the investment. Homeowners who receive funds from Point have 30 years to sell their home or buy back their equity. Some homeowners have used a home equity loan or refinanced their home to obtain the funds to pay back Point.  

Point Home Equity Investment Rates and Fees 

There are some fees that are required in order to obtain a home equity investment. At Point, these include the following:  

• Processing fee: 3% to 5% 
• Appraisal fee: $500-$820 
• Closing costs (escrow fees and government fees) 

Company Information 

Point was founded in 2014 in Palo Alto, California by Alex Rampell, Eddie Lim, and Eoin Matthews. 

They say they started the company because of the frustrating experience of owning a home in Silicon Valley.  

“From failed efforts to refinance our homes to being ‘beaten’ out from buying a home repeatedly in the San Francisco Bay Area, we have experienced first-hand the failings of a system skewed by debt financing,” Point says on its website.  

The company invested in more than 5,000 homes as of May 2022.  

States Serviced by Point 

Point is available in the following 20 states plus the District of Columbia:  

• Arizona 
• California 
• Colorado 
• Connecticut 
• Florida 
• Georgia 
• Illinois 
• Maryland 
• Massachusetts 
• Michigan 
• Minnesota 
• New Jersey 
• New York 
• Nevada 
• North Carolina 
• Ohio 
• Oregon 
• Pennsylvania 
• Virginia 
• Washington State
• Washington, D.C. 

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All reviews updated as of 11/1/22.