Point, a California-based start-up, will finance homeowners with poor credit, allowing them to trade some of their equity for a lump sum of cash. The cost? Point will own a portion of the home, as Bloomberg reports.
Those with a credit score below 620 can get funds from Point, but it also requires the homeowners to have at least 25 percent equity in their homes. Point then adjusts the cost of its investment based on the owner and property, and can sell the property if the owner fails to pay Point back.
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