BadCredit.org, a resource for people looking to improve their credit, recently profiled Point.
Eddie Lim and Eoin Matthews founded Point to rectify a problem with home equity. Launched in 2015, Point offers HEIs (Home Equity Investments). HEIs are an alternative to HELOCs (Home Equity Lines of Credit) and loans.
“Eddie and I spent a lot of time looking at the home equity industry and trying to figure out a better way,” Matthews said. “With Point, I think we’ve done that.”
1. It’s an investment, not a loan
Homeowners experiencing financial hardship might have tens of thousands of dollars in equity that they could use to improve their situation. However, they’re often unable to access this wealth. Traditional options like home equity loans and HELOCs (home equity lines of credit) have strict requirements. Without a pristine credit score, they may not be an option.
By having more flexible approval criteria, Point helps more people unlock their home’s wealth. Since it’s an investment, there are no monthly payments. Customers can pay Point back at any time during the ten-year term.
2. Homeowners have dedicated support throughout the process
Every homeowner has an Account Manager who helps them through the application. Account Managers answer questions and make sure potential customers are a good fit.
Most customers who make it past the application stage receive an offer. The process also includes underwriting and a home appraisal. Homeowners can get funds in as little as twenty days. Point continues to provide resources and support to customers even after they’re funded.
3. The funds can both eliminate debt and increase home value
Many of Point’s customers are looking to eliminate debt. The investment usually removes a major source of stress and reduces their total monthly bill payments by an average of $1,413. Point is also an option for financing home improvements, including ADU funding. Customers looking to invest in their properties may be eligible for preferential pricing.