Point’s product helps homeowners tap into their equity without adding monthly payments; Now available in 18 states
Palo Alto, Calif., July 14, 2022 (GLOBE NEWSWIRE) — July 14, 2022 — Palo Alto, California — Point, an 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 a total of 28 geographies by early 2023.
Point’s HEI is a unique way for homeowners to take advantage of the equity built up in their homes. Point offers homeowners the option to receive a lump sum of cash in exchange for a share of future home appreciation. Because HEI is equity financing, it does not add a monthly payment to the homeowner’s costs. Homeowners have access to $500,000 and have the flexibility to buy their equity back at any time within the 30-year term without penalty.
“Nevada homeowners have over $150 billion in equity available to them, and Ohio homeowners have over $330 billion*,” said Eddie Lim, CEO and co-founder of Point. “The majority of homeowners in both states have usable equity and an incredible amount of wealth in their homes. However, their capital is not always readily available to help with life’s needs or to achieve a dream. And with mortgage rates rising, refinancing is a less attractive way to raise equity.”
Traditional home financing options can often deprive many homeowners of their services, including the ability to take on additional monthly payments. With criteria like no income requirements and a lower credit score minimum, Point’s HEI is accessible to a larger population of homeowners. To qualify, the home must be valued at at least $155,000 and the owner must retain at least 20 percent of the equity after Point’s investment.
“The Point University is a great option for ‘wealthy but poor’ homeowners,” continued Lim. “The product provides homeowners with a way to use their equity for a little financial freedom regardless of the underlying need.”
The addition of these two countries is another 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 5 times year-on-year. Most recently, Point closed a $115 million 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 its first-ever securitization backed entirely by Home Equity Investment (HEI) covenants and also announced more than $1 billion in new capital commitments from leading real estate and mortgage-backed securities (MBS ).
About the point
Point is an equity platform that makes home wealth more valuable for everyone. With a Home Equity Investment (HEI) from Point, homeowners can unlock their equity, allowing them to eliminate debt, get through periods of financial hardship, and diversify their wealth. For investors, Point provides access to a previously untapped asset class in the residential real estate space. Founded in 2015 by Eddie Lim, Eoin Matthews and Alex Rampell, Point is backed by leading investors including Westcap, Andreessen Horowitz, Ribbit Capital, Greylock Partners, Bloomberg Beta, Redwood Trust, Atalaya Capital Management, Kingsbridge Wealth Management, Deer Park Road Management, The Palisades Group, Alpaca VC and Prudential. To date, Point has raised over $170 million in equity capital. The company is headquartered in Palo Alto, California. For more information, please visit www.point.com.
*Based on internal analysis performed by Point.
CONTACT: Amanda Woolley Point 3603191738 [email protected]