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.
- 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.