Process

See how you can quickly help your customers access equity and take control of their financial future.

How Much Money Can My Customers Get?

  • Customers can choose how much money to receive and how much future home appreciation to share at maturity 
  • They can borrow from 3% to 16% of their home’s appraised value (subject to $85,000 minimum loan amount)
  • At maturity, they would owe 3x EquityChoice LTV in future home appreciation + interest (4% compounds monthly). 

For example, if they have home value of $1M, they can borrower from $90,000 (9% LTV) to $160,000 (16% LTV). They would owe from 27% to 48% of their home’s future appreciation depending on how much they borrowed

(plus fixed interest of 4% on unpaid balance)

Choosing to receive less money now will result in a lower cost of Shared Appreciation.

(Future Appreciation = (Gross Sale + Value +/- Home Condition Adjustment) – Initial Agreed Value

To determine how much will be owed in shared appreciation, we will take the following:

Home Price Appreciation Amount = Future Appreciation x% Shared Appreciation

How do you determine the future appreciation or change in value of the home?

When you apply for you loan, we use an independent 3rd party appraiser to estimate the value of your home. To account for market volatility and naturally occurring appraisal variance, your Appraised Value will be reduced by 5% to establish your home’s Initial Agreed Value which will be used as the starting point for calculating the future appreciation.

When it’s time to payoff your loan, we will estimate your home’s value by using one of the following sources:  

  • a sales contract
  • an appraisal, performed by an independent third party selected by lender or a comparable alternative if your home has been damaged or destroyed.

How do you determine the future appreciation or change in value of the home?

When your customer applies for EquityChoice, we will use an independent 3rd party appraiser to estimate the value of the home. To account for market volatility and naturally occurring appraisal variance, the Appraised Value will be reduced by 5% to establish the home’s Initial Agreed Value which will be used as the starting point for calculating the future appreciation.

When it’s time to payoff the loan, we will estimate the home’s value by using one of the following sources:  

  • a sales contract
  • an appraisal, performed by an independent third party selected by lender
  • or a comparable alternative if your home has been damaged or destroyed

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