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Bottom Line: Point is a home equity investment (HEI), not a loan — you get a lump sum of cash today in exchange for a share of your home’s future value, with no monthly payments and no interest. It earns a 8.7/10, the strongest score among the home equity investments we track, thanks to the industry’s longest term (up to 30 years), the lowest credit floor (500), broad availability, a competitive fee, and a clean regulatory record. The main trade-off is the same for any HEI: giving up a slice of future appreciation can cost more than a traditional loan if your home’s value climbs.
What Is Point? (Quick Answer)
Point (Point Digital Finance, founded 2015) is the largest and most established provider of Home Equity Investments (HEIs) — sometimes called home equity agreements. Instead of lending you money, Point gives you a lump sum of cash, typically $30,000 to $600,000, in exchange for a percentage share of your home’s future value. There are no monthly payments and no interest or APR. You have up to 30 years — the longest term in the category — to settle by selling your home, refinancing, or buying Point out. Point accepts credit scores as low as 500, charges a processing fee of up to 3.9% (plus closing costs), and operates in roughly 26 states plus Washington, D.C. It holds an A+ BBB rating and has funded 15,000+ homeowners with no known lawsuits or enforcement actions against it.
How a Home Equity Investment Differs From a HELOC or Home Equity Loan
This is the key thing to understand before you apply — Point’s HEI works very differently from the loans and lines of credit it sits beside:
- A home equity loan gives you a lump sum you repay with fixed monthly payments and interest.
- A HELOC is a revolving line of credit with variable-rate monthly payments.
- A Point HEI gives you a lump sum with no monthly payment and no interest. Your cost is settled later as a share of your home’s value, not an interest rate — so in a strongly appreciating market it can cost more than a loan, and in a flat or falling market it can cost less (Point also shares in depreciation).
If you want predictable payments and the lowest long-term cost, a HELOC or home equity loan is usually the better tool. If you want cash without adding a monthly bill — and you value a long runway to repay — an HEI like Point is worth comparing. See our guide on HELOC vs. home equity loan for the traditional options. (Note: Point also offers a separate HELOC product, but only in about seven states; this review covers its flagship home equity investment.)
How Point Works
- Get a pre-qualified estimate. You start online with a soft credit check that doesn’t affect your score. Point estimates how much cash you could access based on your home and equity.
- Receive and accept an offer. If you qualify, Point makes an offer for a lump sum in exchange for an agreed share of your home’s future value. An appraisal sets the starting value, and funds typically arrive in a few weeks.
- Settle within 30 years. Repay Point anytime during the term — by selling, refinancing, or buying Point out (“Point Exit”) with savings or another loan. There’s no prepayment penalty, and a homeowner-protection cap limits how high the effective cost can climb.
Point at a Glance
- Product type: Home Equity Investment (HEI) — not a loan, no APR
- Cash available: $30,000 to $600,000 (max $500,000 if your credit score is under 600)
- Monthly payment: None
- Term: Up to 30 years (settle anytime, no prepayment penalty)
- Minimum credit score: 500 (the lowest among major HEIs)
- Equity required: generally retain ~20–40% equity (about 70–80% max combined LTV)
- Processing fee: up to 3.9% ($2,000 minimum), plus closing and appraisal costs
- Property types: primary homes, second homes, and investment/rental properties up to 4 units
- Availability: about 26 states plus Washington, D.C.
Pros and Cons
Pros
- No monthly payments and no interest or APR — it doesn’t add a bill to your budget.
- Longest term in the category: up to 30 years to settle, versus 10 for some competitors.
- Lowest credit floor among major HEIs — scores as low as 500 can qualify.
- Competitive processing fee (up to 3.9%) and a homeowner-protection cap on cost.
- Unusually flexible eligibility — investment/rental properties and 1–4 unit homes are allowed.
- Largest, most-established HEI provider: 15,000+ homeowners funded, A+ BBB rating, ~4.7 Trustpilot, and no known lawsuits.
Cons
- You give up a share of future appreciation — in a strong market the effective cost can be high.
- Available in only about 26 states plus D.C. — not nationwide.
- Higher minimum draw ($30,000) than some smaller-dollar alternatives.
- Processing fee up to 3.9% ($2,000 minimum) plus several thousand dollars in closing costs.
- Settling without selling requires cash or a new loan to buy Point out.
- The maximum investment drops to $500,000 for credit scores under 600.
Eligibility and Availability
Point is the most accessible HEI on credit: it accepts scores as low as 500 (though the average funded homeowner is around 640), and there’s no monthly-payment income or DTI underwriting. What matters most is equity — you generally need to retain roughly 20–40% after the investment (about a 70–80% maximum combined loan-to-value). Point is also unusually flexible on property type, allowing primary residences, second homes, and investment or rental properties up to four units (a rental premium may apply to non-owner-occupied homes).
Availability is limited but broad for the category: Point operates in roughly 26 states plus Washington, D.C., including Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Virginia, Washington, and others. Because Point is actively expanding, confirm your state on Point’s site before applying.
Fees and Costs
Point charges a processing fee of up to 3.9% of the investment (a $2,000 minimum), deducted from your funds, plus standard third-party costs — appraisal (up to ~$1,000), title and government fees (~$1,000–$1,600), and a credit report. As with any HEI, though, the largest cost isn’t a fee — it’s the share of future appreciation you agree to hand over at settlement. Point applies a homeowner-protection cap that limits how high the effective annualized cost can go, but the exact cap is quote-specific, so review your offer carefully and model both a flat-market and a rising-market scenario before signing.
Settlement: Up to 30 Years, Your Choice
You can settle the investment at any point within the 30-year term using any of three paths:
- Sell your home and pay Point its share from the proceeds.
- Refinance your mortgage and use the proceeds to buy Point out.
- Buy Point out directly (“Point Exit”) with savings or another financing source.
There’s no prepayment penalty, so you can exit early and simply lock in your cost based on the home’s value at that time. The 30-year window is what sets Point apart — it removes the pressure of a near-term deadline that shorter HEIs impose.
Point vs. Hometap
The two leading home equity investments suit different homeowners. Point offers a far longer term (up to 30 years vs. 10), a lower credit floor (500 vs. 585), broader state availability (~26 vs. ~16), a lower processing fee (3.9% vs. 4.5%), eligibility for investment properties, and a cleaner regulatory record. Hometap can be a fit for smaller draws and shorter horizons, and it excludes renovation-driven appreciation from its share. For most borrowers comparing the two, Point is the more flexible, broader-market option — see our Hometap review for the other side.
What to Consider Before You Apply
The most important factor is the appreciation tradeoff: because you’re selling a slice of your home’s future value, a strong housing market can make an HEI significantly more expensive than a comparable loan. Model your likely settlement cost before signing, and weigh Point’s homeowner-protection cap into that estimate.
On the regulatory side, it’s worth noting what’s not here: unlike some peers, Point has no known lawsuits or enforcement actions against it, holds an A+ BBB rating, and has even publicly asked regulators to create clearer oversight for home equity investments. That said, the Consumer Financial Protection Bureau has cautioned that HEIs as a category are complex and potentially high-cost, so read your agreement closely and consider independent advice before committing.
Who Point Is Best For
Point is best for homeowners who want a lump sum of cash without a monthly payment, value the longest possible runway (up to 30 years) to repay, have lower or thinner credit (down to 500), own an investment or rental property, or live in a state other HEI providers don’t serve. It’s a poor fit if you want the lowest long-term cost, need a predictable repayment structure, expect strong home-price growth, or live outside its service area. Compare it against the traditional options in our home equity hub first.
Frequently Asked Questions
Is Point a loan?
No. Point’s flagship product is a home equity investment (HEI), not a loan. There’s no interest, no APR, and no monthly payment. You settle by giving Point an agreed share of your home’s value within 30 years, usually when you sell, refinance, or buy the agreement out.
What credit score do I need for Point?
As low as 500 — the lowest floor among major home equity investment providers — though the average funded homeowner scores around 640. Point weighs your home equity more heavily than your credit and does no monthly-payment income/DTI underwriting.
What states is Point available in?
About 26 states plus Washington, D.C. for its home equity investment, including California, Colorado, Florida, Georgia, Illinois, Maryland, New York, Ohio, Oregon, Pennsylvania, Virginia, and Washington. It is not available nationwide, so confirm your state on Point’s site.
What does Point cost?
A processing fee of up to 3.9% (with a $2,000 minimum) plus standard closing and appraisal costs. The larger cost is the share of your home’s future value you agree to pay at settlement, which can be significant if your home appreciates.
How long do I have to repay Point?
Up to 30 years — the longest term in the category. You can settle anytime within that window with no prepayment penalty by selling, refinancing, or buying Point out.
How is Point different from Hometap?
Point offers a longer term (30 vs. 10 years), a lower credit floor (500 vs. 585), more states, a lower fee, and eligibility for investment properties, with a cleaner regulatory record. Hometap can suit smaller draws and shorter horizons.
Best For: Homeowners who want the longest term and lowest credit floor among home equity investments
