Point

At a Glance

• Product type: Home equity investment/home equity agreement (not a traditional loan)
• Best for: Homeowners with solid equity and at least fair credit who want cash with no monthly payments and who expect to stay in the home for several years.
• Funding amount: Typically $30,000–$500,000, up to about 20–25% of your home’s value (Point also markets “up to $600k” for higher-value homes).
• Term length: Up to 30 years to buy back Point’s stake or settle when you sell or refinance.
• States available: About 26 states plus Washington, D.C., including large markets like CA, FL, NY, NJ, WA, & VA.
• Property types: Single-family homes, condos, 1–4 unit multifamily, townhomes, many second homes, and investment properties (no manufactured/mobile homes).
• Credit/income: 500+ FICO; no minimum income requirement.
• Equity required: Generally ~30% equity in your home; some sources describe a 20–40% range.
• Upfront fees: Processing fee up to 3.9% of the amount you receive (minimum $2,000) plus third-party costs like appraisal, escrow, and government fees.

How Point’s Home Equity Investment Works

Not a loan, but you still owe money later

Point’s HEI lets you sell a slice of your future home value in exchange for cash today:

1. Point invests a lump sum in your home (for example, $75,000).
2. In return, Point gets:
   • A contractual right to a percentage of your home’s future appreciation or
   • A payoff amount capped by its Homeowner Protection Cap, whichever is lower.
3. You don’t make monthly payments, and Point doesn’t charge interest. Instead, you settle the HEI in a single lump sum:
   • When you sell your home, or
   • When you refinance, or
   • If you buy back the HEI earlier using cash or a new loan.

Point records a lien against your property, similar to a second mortgage, so it has a secured claim when you eventually settle.

Appreciation Starting Value & risk-adjusted valuation

One of the most important details is how Point defines the “appreciation starting value” of your home:

• Point uses an independent appraisal but then applies a risk-adjusted value that’s usually lower than market value.
• FinanceBuzz reports this starting value can be around 27% lower than an online estimate, meaning Point is effectively measuring its share of appreciation from a discounted base.

This structure protects Point and means that:

• You get cash today, but
• You may be giving up a larger slice of your future equity than you’d expect if they used full market value.

Homeowner Protection Cap

To prevent HEI costs from exploding if your home skyrockets in value, Point uses its Homeowner Protection Cap:

• Your payoff is calculated two ways (percentage of appreciation vs. capped growth), and you pay the lower of the two.
• The cap uses an 18% annual growth factor applied over time to limit how large Point’s proceeds can grow.

This doesn’t make Point “cheap,” but it does put an upper bound on how much you can owe.

Eligibility, States & Property Types

Where Point HEI is available

Point’s HEI isn’t nationwide. According to recent reviews and Point’s disclosures, it’s available in roughly 26 states plus Washington, D.C., including:

Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin, and Washington, D.C.

Always check Point’s website or pre-qualify tool – availability does shift over time.

Eligible property types

HEIs generally work with:

• Owner-occupied single-family homes
• Condos and townhomes
• 1–4 unit multifamily properties
• Many second homes and investment properties

Manufactured or mobile homes typically aren’t eligible.

Credit, equity & home value requirements

While final underwriting is case-by-case, third-party reviews and Point’s own FAQ suggest:

• Minimum credit score: 500+
• No minimum income requirement (a major differentiator vs. HELOCs and home-equity loans)
• Equity: usually need at least ~30% total equity; some reviewers describe a 20–40% range
• Home value: Typically, you'll need a minimum value of around $140,000, while other analyses mention thresholds closer to $150k+; Point’s own cost-estimator uses $300,000 as a sample minimum for its calculation tool, but that’s not necessarily a hard underwriting floor.

How Much Money Can You Get?

Point positions itself as “Best Overall” and “Best for longer terms” in recent rankings because it can offer relatively large amounts with a long, 30-year term.

Typical ranges:

• Funding amount: $30,000 to $500,000
• Maximum share: Up to 20–25% of your home’s value
• Marketing cap: Point’s own site says you can get up to $600,000 from your equity, depending on home value, location, and underwriting.

The actual offer depends on:

• Your home’s appraised value
• Existing mortgage balance and other liens
• Your credit profile and debt levels
• The combined Loan + HEI-to-Value (often kept under ~70% total exposure)

Fees & Total Cost

Upfront fees

Point’s HEI has no application fee and no monthly payments, but the upfront transaction costs come straight out of your proceeds:

• Processing fee: Up to 3.9% of the amount you receive, minimum $2,000
• Third-party fees: Appraisal, escrow, title and government recording fees

So if you’re approved for $100,000, you might see something like:

• Gross HEI: $100,000
• Processing fee (3.9%): –$3,900
• Third-party costs (example): –$1,100
• Net cash to you: ~$95,000

Payoff & sharing in appreciation

When you settle the HEI (by sale, refinance, HELOC or a cash payoff), you typically owe:

1. The original investment amount (e.g., $100,000), plus
2. Point’s agreed-upon share of your home’s change in value above the “appreciation starting value”
3. Or, if that number is higher than the Homeowner Protection Cap, you pay the capped amount instead.

Point also says it shares in depreciation: if your home’s value falls below the appreciation starting value, Point’s payoff can be less than the original amount you received.

It’s impossible to translate this into a precise APR because:

• Your payoff depends on future home values and
• When you choose to exit the agreement

But independent reviewers who model scenarios often find that effective costs can rival or exceed high-interest credit, especially if home prices grow quickly and you hold the HEI for a long time.

When a Point HEI Might Make Sense

Point’s HEI can be a good fit if:

• You’re equity-rich but cash-constrained and can’t or don’t want to qualify for traditional loans.
• You need a large lump sum to pay down high-interest debt, cover medical bills, or fund critical repairs.
• You value payment-free breathing room more than preserving every dollar of future home appreciation.
• You’re reasonably confident you’ll stay in the home for several years and can refinance or plan a sale before the 30-year term ends.

If that sounds like you, the combination of low FICO requirement, no income requirement, and no monthly payments can be compelling.

When You Might Skip Point & Consider Alternatives

Point may not be ideal if:

• You have strong credit and income and can qualify for a low-rate HELOC, home-equity loan or cash-out refi. In those cases, traditional debt is usually cheaper over time.
• You expect rapid appreciation in your area and want to keep as much upside as possible.
• You plan to sell or refinance soon; a 30-year equity-sharing agreement for a home you might sell in 2–3 years can be overkill.
• You’re uncomfortable with complex contracts or having an investor with a lien tied to your home.
• You’re already close to eligibility limits on total debt-to-value; adding a HEI might make future financing harder.

Alternatives to compare side-by-side:

• Home equity line of credit (HELOC) – revolving, variable-rate credit with monthly payments.
• Home equity loan – fixed-rate, lump-sum loan with predictable payments.
• Cash-out refinance – replaces your first mortgage with a larger one, giving you cash at today’s mortgage rates.
• Reverse mortgage (for older homeowners) – no monthly payments, but different fee structures and risks.

How to Evaluate Point vs Other HEI Providers

If you’re comparing Point with other home equity investment companies like Hometap, Unlock or Unison, focus on:

1. State availability & property type – who actually serves your state and property (primary, second home, rental, multifamily)?
2. Funding range & max share – how much can each provider invest, and what’s the max percentage of your home’s value?
3. Term length – 30 years with Point vs. ~10 years with several competitors.
4. Upfront fees – processing/origination fee %, minimum dollar amount, and estimated third-party costs.
5. Valuation method – how big a haircut does each provider apply to your home’s appraised value?
6. Payoff mechanics – caps, shared depreciation, and whether you can make partial buybacks (Point does not highlight partial repurchases like Unlock does).
7. Customer reviews – Trustpilot, BBB and long-form reviews; look for recurring patterns in complaints.

Bottom Line: Is Point HEI a Good Option?

Point’s Home Equity Investment is one of the most established and widely-available home equity sharing products on the market. The combination of no monthly payments, flexible underwriting, support for investment properties, and a 30-year term makes it stand out, especially if you’re equity-rich but don’t fit the neat box for traditional lenders.

However, you pay for that flexibility by:

• Giving up a share of your home’s future appreciation
• Accepting a risk-adjusted starting value that’s lower than market
• Agreeing to a large balloon payoff at some point over the next three decades

If you can qualify for a competitively priced HELOC or home-equity loan, those options are likely to be cheaper and simpler. If you cannot, but you need a substantial amount of cash and you’re comfortable sharing some of your future home value, Point HEI can be worth considering—as long as you run payoff scenarios, read the fine print carefully, and ideally discuss the contract with a professional before you sign.