Homeowners who need cash often turn to home equity loans, home equity lines of credit, or cash-out refinancing. Point takes a different approach. Its Home Equity Investment lets eligible homeowners receive cash upfront without making monthly payments to Point during the agreement.
That feature may sound attractive if adding another monthly debt payment would strain your budget. The trade-off deserves careful attention, though. Point receives the original investment plus a share tied to your home's future change in value when you settle the agreement. The final amount can be difficult to predict years in advance.
This Point HEI review explains how the product works, what Point currently charges, who may qualify, how repayment is calculated, and the risks homeowners should understand before signing.
What Is Point HEI?
A Point home equity investment is an agreement that lets you access part of your home equity as an upfront lump sum.
Point currently advertises HEI amounts from $30,000 to $600,000. The maximum amount is generally 20% of the home's value, although the actual amount available depends on factors such as property value, existing liens, available equity, and the homeowner's financial profile.
In return for the cash, Point receives the right to participate in a percentage of the home's future change in value. Point describes the agreement as a real estate option agreement. The agreement is recorded against the property, although the homeowner retains ownership.
Point says current HEI agreements can last up to 30 years. Some older agreements have 10-year terms. Homeowners can repay before their term ends without a prepayment penalty.
Unlike traditional home financing, Point does not require monthly payments during the HEI term.
| Feature | Point HEI |
|---|---|
| Funding | $30,000 to $600,000 |
| Maximum offer | Generally up to 20% of home value |
| Term | Up to 30 years for current agreements |
| Minimum credit score | 500 |
| Minimum home value | $155,000 |
| Monthly payment to Point | None |
| Income verification | Not required |
| Prepayment penalty | None |
| Processing fee | 3.9%, with a $2,000 minimum |
Point states that individual eligibility, pricing, and investment amounts can vary.
How Point HEI Works
The basic arrangement has two parts. Point provides cash at the beginning of the agreement, and the homeowner settles the HEI later.
Point determines an initial property value during underwriting. It then establishes an Appreciation Starting Value below the property's assessed value.
Your agreement also contains an HEI percentage. This percentage determines Point's share of the change in value between the Appreciation Starting Value and the home's value when you repay.
If the property's value increases, Point can participate in that appreciation. If the final value drops below the Appreciation Starting Value, Point may share in the loss and the repayment amount could fall below the original investment.
The exact outcome depends on your individual agreement and property value at settlement.
The Appreciation Starting Value Can Affect Your Cost
One of the most important terms to understand is the Appreciation Starting Value.
Point does not begin measuring appreciation from the property's full initial valuation. Instead, it adjusts that value downward.
According to Point, this adjustment helps protect the company against depreciation and allows it to participate in losses if the property's value eventually falls below the adjusted starting figure.
The result is significant for homeowners because appreciation is measured from this lower figure rather than the initial property valuation.
Suppose a property is valued at $500,000 but receives a lower Appreciation Starting Value. Point's share of appreciation would begin from that adjusted amount according to the HEI percentage in the homeowner's contract.
There is no single adjustment percentage that applies to every homeowner. The specific terms depend on the individual offer.
This is one reason homeowners should examine their Appreciation Starting Value and HEI percentage together rather than focusing solely on the amount of cash they receive.
How Much Are Point HEI Fees?
Current Point HEI fees include a 3.9% processing fee with a $2,000 minimum. Point deducts closing costs from the investment amount rather than requiring those charges to be paid separately at closing.
Point's current fee information lists these typical charges:
| Fee | Typical Amount Listed by Point |
|---|---|
| Processing fee | 3.9%, $2,000 minimum |
| Appraisal or AVM | Up to $1,000 |
| Title and government fees | $1,000 to $1,600 |
| Credit report | $40 to $50 |
| Flood certification | $12 |
| Financial counseling, when required | $130 |
| Title cleaning | $199 per payoff, up to $597 |
Point states that these figures are informational, can change, and do not represent every possible charge. Actual costs are disclosed in the applicant's Option Agreement Estimate.
There can also be third-party expenses when you exit the agreement. Point currently lists typical reconveyance fees of $40 to $70 and recording fees of $50 to $250. A repayment appraisal, when required, may cost up to $1,000.
Because closing costs are deducted from the investment, the amount deposited into your account can be lower than the HEI amount shown in your agreement.
Who Can Qualify for Point HEI?
Current Point HEI requirements are relatively flexible in certain areas, particularly credit and income.
Point currently requires a minimum credit score of 500. It does not verify income or employment for HEI eligibility and says it does not require pay stubs, collect bank statements for income verification, or calculate a debt-to-income ratio as part of HEI qualification.
That does not mean approval is automatic.
Point evaluates the property, available equity, ownership, mortgages and liens, credit history, and other eligibility factors.
Current basic requirements include:
- A credit score of at least 500
- A property worth at least $155,000
- Sufficient equity after receiving the investment
- An eligible property type
- A home located in an eligible Point service area
- The applicant's name on the property title
- Signatures from all owners at closing
Point says homeowners generally need to retain at least 27% equity after the investment, although the exact requirement is determined during prequalification.
Recent bankruptcies and foreclosures can trigger waiting periods.
Which Properties Are Eligible?
Point currently accepts several residential property types, including:
- Single-family homes
- Condominiums
- Townhomes
- Residential properties with one to four units
Point lists manufactured homes, mobile homes, co-ops, commercial properties, properties held in an LLC, and several unconventional home types as ineligible.
Properties undergoing certain renovations can also be excluded. For example, Point states that homes with exposed studs in above-grade areas during renovation do not qualify.
Lot size is currently limited to seven acres or less.
Where Is Point HEI Available?
As of August 2026, Point says its HEI is available in select regions of:
Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin, and Washington, D.C.
Availability can vary by county or region within a listed state. Homeowners need to check their address with Point to determine eligibility.
How Does Point HEI Repayment Work?
Point HEI repayment generally requires one lump-sum settlement rather than monthly installments.
Point says homeowners commonly settle by:
- Selling the property
- Using a HELOC
- Completing a cash-out refinance
- Using personal funds
- Using Point's Re-Point option, when eligible
Repayment generally consists of Point's original investment plus its applicable share of appreciation, subject to the contract's Homeowner Protection Cap.
Your home's final value must also be established.
For a home sale, Point may use the sale price if the transaction meets its requirements. For other repayment methods, Point may rely on an appraisal, automated valuation model, exterior desktop appraisal, or another approved third-party valuation method.
After full payment, Point issues a lien release.
What Is the Homeowner Protection Cap?
Point's Homeowner Protection Cap limits the amount the homeowner may owe when the appreciation-based calculation produces a high repayment figure.
Point performs two calculations when determining repayment. One uses the home's appreciation and the HEI percentage. The other calculates a capped repayment amount using a fixed annual rate compounded monthly.
The homeowner pays the lower applicable amount.
The cap can become especially relevant during the early years because Point calculates appreciation from the Appreciation Starting Value, which starts below the property's initial valuation.
The rate used for the cap can depend on the homeowner's agreement, so applicants should check their contract rather than relying on a general example.
What Happens If Your Home Loses Value?
A decline in property value does not automatically mean you repay less than Point initially provided.
Point begins sharing in losses only if the final home value falls below the Appreciation Starting Value.
If your property's final value falls below its initial valuation but remains above the Appreciation Starting Value, you could still repay above the amount originally received.
If the final value drops below the Appreciation Starting Value, Point says its share of the loss may result in a repayment below the original investment.
This distinction makes the Appreciation Starting Value particularly important when assessing the potential cost of an HEI.
Can You Refinance After Getting Point HEI?
Refinancing may become less straightforward after signing an HEI because Point's agreement is recorded against the property.
Point says a rate-and-term refinance that does not repay the HEI may be reviewed to confirm that it meets specified conditions. Under its current guidance, such a refinance generally cannot provide over $200 in cash out or materially increase the mortgage balance compared with the balance when the HEI agreement was signed.
The refinance lender may also require the Point HEI to be settled.
Homeowners seeking a cash-out refinance will generally need to repay Point first.
Point also restricts new liens that would take priority over its position or otherwise impair that position unless Point approves them.
These restrictions deserve attention if you expect to borrow against your property again during the HEI term.
What Happens at the End of the 30-Year Term?
A current Point HEI must be settled by the expiration date stated in the agreement.
A homeowner approaching that date may use personal funds, obtain qualifying financing, or sell the property and use the proceeds to repay Point.
The consequences become serious if the agreement reaches its expiration date without repayment.
Point states that it may exercise its option under the contract. If exercised, Point becomes a co-owner with the right to sell the property. The homeowner can remain in the home until it sells and receives their applicable share of the sale proceeds.
Failure to cooperate with a required sale can constitute default and may result in further action, including foreclosure.
The long term therefore should not be mistaken for an indefinite repayment period.
Point HEI Pros and Cons
Potential Advantages
No monthly payments to Point
The HEI does not require regular monthly payments during the agreement, which may help homeowners who need liquidity without adding another scheduled payment.
No income verification
Point does not verify income or employment for HEI qualification.
Credit requirements can be flexible
Point currently lists a minimum credit score of 500, potentially making the product accessible to some homeowners who cannot qualify for conventional home equity financing.
Long repayment period
Current agreements can provide up to 30 years to settle.
No prepayment penalty
Homeowners can settle early without a prepayment penalty.
Potential Drawbacks
Future cost is uncertain
The eventual payment depends partly on the property's future value and the terms written into the HEI agreement.
The starting value is adjusted downward
Point calculates appreciation using an Appreciation Starting Value below the property's initial valuation.
Closing fees reduce your proceeds
The 3.9% processing fee and applicable third-party expenses are deducted from the investment.
Point records an interest against the property
The agreement can affect future refinancing and additional property-secured financing.
Repayment requires a lump sum
There are no monthly HEI payments, yet the contract eventually needs to be settled in full.
Your home can ultimately be at risk
If an HEI reaches expiration without repayment, Point may exercise contractual rights that can lead to a property sale. The CFPB has similarly warned that home equity contracts can create significant repayment risks for homeowners.
Point Home Equity Investment vs HELOC
A home equity investment vs HELOC comparison comes down largely to how the homeowner wants to pay for access to equity.
| Feature | Point HEI | HELOC |
|---|---|---|
| Monthly payment | None to Point | Typically required |
| Interest | No traditional interest charge | Interest charged on borrowed balance |
| Income verification | Point does not require it | Commonly required by lenders |
| Credit review | Yes | Yes |
| Repayment | Future lump sum | Payments under lender's repayment schedule |
| Future appreciation | Point participates under contract | Homeowner retains appreciation |
| Property lien | Agreement recorded against property | Typically secured by property |
| Cost certainty | Final settlement can vary | Rate and balance determine borrowing cost |
A HELOC can make sense for borrowers who qualify for conventional financing and can handle ongoing payments. Point HEI may suit some homeowners who place greater value on avoiding monthly payments or cannot satisfy traditional income requirements.
Cost should receive serious attention before choosing between them.
The CFPB reported in 2025 that home equity contracts can be expensive compared with traditional home-secured financing. It also warned that settlement amounts can be difficult to predict and may become substantial depending on the contract structure and property value.
Is Point HEI Worth It?
Point HEI may fit a homeowner who has substantial property equity but has difficulty qualifying for conventional financing or strongly prefers not to take on another monthly payment.
Its flexible income policy, 500 minimum credit score, and long contract term can make it accessible to some homeowners who have limited borrowing choices.
Those advantages need to be weighed against the cost structure.
You give Point contractual rights tied to future property appreciation, pay a processing fee and other closing expenses, accept a starting value below the property's initial valuation, and eventually face a lump-sum settlement.
The final cost can be uncertain because nobody knows exactly how a property will perform over several years or decades.
Before signing, review the actual Option Agreement Estimate and pay particular attention to:
- Your Appreciation Starting Value
- Your HEI percentage
- Your Homeowner Protection Cap
- Your net proceeds after fees
- Your contract expiration date
- Potential settlement amounts under different home-value scenarios
- Restrictions affecting future refinancing or liens
- Your planned source of funds for eventual repayment
Comparing those figures with a HELOC, home equity loan, cash-out refinance, or another financing method can provide a clearer picture of the financial trade-offs.
Frequently Asked Questions
Is Point HEI a loan?
Point describes its HEI as a real estate option agreement rather than a traditional loan, although Point acknowledges that an HEI is classified as a mortgage loan in some states. It is recorded against the property and requires future lump-sum repayment.
Does Point HEI charge interest?
Point does not structure its HEI with a traditional interest rate. Instead, repayment generally includes the initial investment plus Point's contractual share tied to appreciation, subject to the Homeowner Protection Cap.
Does Point HEI require monthly payments?
No. Point does not require monthly HEI payments during the contract term.
What credit score does Point require?
Point currently lists a minimum credit score of 500. Credit history still affects eligibility and may affect the terms available.
Does Point verify income?
No. Point states that it does not verify employment or income for HEI eligibility and does not evaluate a debt-to-income ratio for this product.
How much can you get from Point?
Point currently advertises HEIs from $30,000 to $600,000. The maximum offer is generally 20% of the home's value, subject to equity, valuation, liens, credit profile, and other underwriting factors.
Can you pay Point HEI back early?
Yes. Point says homeowners can repay during the agreement without a prepayment penalty.
Is Point HEI Right for Your Home Equity?
Point gives qualifying homeowners a way to turn part of their property equity into cash without taking on monthly HEI payments. That can be useful when cash flow or conventional lending requirements make other financing difficult.
The trade-off is the future settlement obligation. Your Appreciation Starting Value, HEI percentage, Homeowner Protection Cap, closing costs, property performance, and repayment timing can all affect what the agreement ultimately costs.
Before accepting an HEI, compare the cash you actually receive after fees with several potential repayment scenarios. Pay particular attention to the amount you might owe if your home appreciates substantially.
An HEI can remove a monthly payment from the equation, but it does not remove the cost of accessing your equity. Understanding that future cost is the key part of deciding if Point fits your financial situation.
