Frequently Asked Questions

Yes - most of our clients have an existing mortgage, and some homeowners have both an existing mortgage and a HELOC or home equity loan. A HomeFunds investment is complimentary to traditional mortgage loans.

Yes — We pride ourselves on our funding flexibility and our underwriting team looks beyond credit scores and evaluates other important factors such as your home equity, your income sources and savings, and use of funds. Our funding criteria is not rigid like a bank, and since we are investors and not lenders, your home's equity is our main qualification factor.

During the application process, we require homeowners to provide certain identity and financial documentation, including:

• Proof of identification
• Income verification
• Home ownership and any mortgage information
• Bank statements
• Recent property tax statements
• Proof of homeowners insurance

No, HomeFunds is not added to the title of the property. You retain sole ownership of your home. Just like a mortgage, HomeFund's investment is secured by a Deed of Trust and a Memorandum of Option, which gives public notice of our rights and serves as a lien on the home.

No — a HomeFunds investment is different from a mortgage or home equity loan. It provides a debt-free method for homeowners to access their home equity, without monthly payments or interest.

Additionally, a Home Value Investment from HomeFunds does not show up on your credit report and does not add to your overall debt.

Our investment most often improves credit scores by 25+ points, since the investment funds oftentimes pays down a homeowner's existing debts which are negatively impacting their credit score. This credit score improvement increases the opportunities to later refinance your home with a bank.

Our term length is 10 years. Anytime within the 10 years, you can buy-out our share of the Home Value by:

• Home refinance with a traditional lender
• Take out a home-equity loan/HELOC or a reverse mortgage
• Use cash savings
• Sell your home

We are available in California, with more states coming soon!

In exchange for a HomeFunds cash investment, HomeFunds is betting on the future appreciation of home. If the home value doesn't increase in value over time, then we make less. If the home value dips substantially, then we may have investment losses.

At the end of the day, we are investors alongside the homeowner and want the home to increase in value over the years, as you do.

The closing costs are deducted from the Investment total, so you have no out-of-pocket costs. Upon a funded HomeFunds investment, we charge a one-time servicing fee of 3 - 5% of the Investment amount for arranging and funding the Investment.

Additionally, there are third party fees associated with the signing (escrow, appraisal, notary, & document recording fees).

For the sake of full transparency, you'll receive a detailed Cost Estimate once you submit an application, with details of all the costs associated with the HomeFunds Investment.

Here are some common third-party cost examples:

Appraisal Cost: $450
A third-party home appraisal determines the market value of your home.

Title Insurance Policy Cost: $380
Protects from defects in a title to a property.

Title/Escrow Cost: $495
Signing costs you pay to facilitate the HomeFunds Investment - including notary costs, settlement fees, title and property report production.

Government Recording & Transfer Charges Cost: $400
These include filing fees and may vary on a state and county level.

Please note that these fee estimates are for informational purposes only, and actual costs are subject to change based on a home's location.

Yikes! Let's hope that never happens. In such an unfortunate and unlikely circumstance, and if the home cannot be repaired and restored to its condition before the disaster, then HomeFunds would use an appraiser to determine the value of the property before the disaster. Once such value is determined, then HomeFunds would receive part of the home value share from the insurance proceeds, similar to as if you had sold the property.

A HomeFunds investment may not be the right fit for every homeowner, but it does have some unique homeowner benefits:

• Unlike a traditional bank home equity loan or HELOC, HomeFunds offers quick approvals, with much broader underwriting criteria.
• We close quickly: From start to finish, we can provide cash to homeowners in under two weeks time.
• HomeFunds makes home investments, and unlike a loan, we add no debt, no monthly payments and have no interest costs.

HomeFunds has the potential to make money from the percentage of the home's value we are entitled to receive when you sell your home, cash-out refinance, or buy us out before or at the end of the term.

Bottom line, if your home value goes up, we make more, and if it goes down, we make less money. We are investors alongside the homeowner, and our interests are aligned with wanting to see the home appreciate over time.

HomeFunds is designed to be tax-friendly for homeowners. For many homeowners, your co-investment cash from HomeFunds ($40k-$300k) is a tax-free payment.

However, HomeFunds is not a tax advisor and cannot provide tax advice. We strongly recommend that you consult with a tax advisor before taking an investment from us. Tax laws can be complex, vary state-to-state, and each homeowner's situation is unique. HomeFunds disclaims any representation or warranty concerning a homeowner's tax treatments.

Get prequalified in under a minute for a HomeFunds investment. Even though our investment criteria is quite flexible, here are a few general factors that we look at:

• Your single-family home, townhouse or condo is located in a state in which HomeFunds is operational - currently only California.
• You have a credit score above 530.
• You have a minimum of 35% equity in your home before a HomeFunds investment.
• Our investment minimum is $40,000 and up to $300,000 cash.

We try to close all investments within two weeks - you get the money right at close.

HomeFunds provides $40,000 to $300,000 to homeowners.