Palo Alto, Calif, Jul 14, 2022 (GLOBE NEWSWIRE) - Point, a home equity platform and fintech company, has launched its services in Nevada and Ohio. With the addition of these two new states, Point’s Home Equity Investment (HEI) is now available in 18 states and the District of Columbia. Point plans to expand to nine additional states, reaching 28 total geographies by early 2023.
Point’s HEI is a unique way for homeowners to tap into the equity built up in their homes. Point offers homeowners the option to get a lump sum of cash in exchange for a share of the home’s future appreciation. As an HEI is equity financing, it doesn’t add a monthly payment to a homeowner’s expenses. Homeowners can access up to $500,000 and have the flexibility to buy their equity back at any time within the 30-year term with no penalty.
“Nevada homeowners are sitting on more than $150 billion in tappable home equity and Ohio homeowners have more than $330 billion*,” said Eddie Lim, CEO and co-founder of Point. “The vast majority of homeowners in both states have tappable equity and are sitting on an incredible amount of wealth in their homes. However, their equity isn’t always readily accessible to help with life’s needs or to achieve a dream. And with mortgage rates on the rise, refinancing is a less attractive way to leverage home equity.”
Traditional home financing options can often box a lot of homeowners out of their services, including one’s ability to take on additional monthly payments. With criteria like no income requirements and lower credit score minimums, Point’s HEI is available to a larger population of homeowners. To qualify, the home needs to be valued at least $155,000 and the homeowner must retain at least 20 percent of the equity after Point’s investment.
“A Point HEI is a great option for homeowners who are ‘house rich but cash poor’,” continued Lim. “The product provides homeowners a way to use their home equity for a bit of financial freedom, no matter the underlying need.”
The addition of these two states is one more milestone in an incredible year of growth for the home equity platform. In the first half of 2022, Point’s funding volume grew by more than 5x year-over-year. Most recently, Point closed $115 million of Series C financing in May 2022, led by WestCap, with participation from other existing investors Andreessen Horowitz, Ribbit Capital, Redwood Trust, Atalaya Capital Management, and Deer Park Road Management. In 2021, Point completed the first-ever securitization backed entirely by residential Home Equity Investment (HEI) agreements and also announced more than $1B in new capital commitments from leading real estate and mortgage-backed securities (MBS) investors.