Homeowners who want to access the equity in their homes but fail to qualify for traditional solutions like home equity lines of credit (HELOCs) have a new solution in Point, a technology startup that gives borrowers cash in exchange for a share of their property's equity. The Palo Alto, California-based company is giving homeowners a way to dig themselves out of debt, remodel their homes or improve their finances in exchange for a temporary option on the property. The service fills an unmet need that Point’s founders, who all have backgrounds in developing technology and online advertising startups, noticed as they aged into their 30s and began to buy and refinance their own homes. Point co-founder and chief business officer Eoin Matthews “In going through those experiences personally, it wasn’t what we thought it should be,” said Eoin Matthews, chief business officer and co-founder of Point. “The mortgage process took a long time, there wasn’t much we could do...
- Technology startup Point gives homeowners the ability to exchange home equity for funds without a monthly payment obligation.
- The founders of the company wanted to create a product that provides more flexibility to investors and homeowners so that when one party is struggling, the whole system doesn't collapse.
- In a Point contract, a combination of an on-site appraisal, a third-party automated valuation model and other in-house algorithms determine a property’s worth.
- Point is currently only available in cities in coastal California but hopes to add other areas to its coverage before the end of the year.