US homeowners have stacked up trillions of dollars of home equity. Big investors are now ready to cut deals that could change homeownership as we know it. A lower credit score doesn't necessarily mean a lender will deny you a home equity loan. It does mean the loan will be more expensive, but there are options available.
Bellevue, Washington-based real estate investment firm Legacy Group Capital announced this week that it has acquired fintech company Rook, showcasing the growing interest in home equity investment companies. Most U.S. homeowners have accumulated a substantial amount of home equity in the past few years. But there are limited options to access this wealth in the traditional lending market.
Hometap, the Boston-based financial technology company pioneering debt-free home equity financing for American homeowners, is a prime example of a company revolutionizing the home equity investment industry. Redwood Trust and home equity fintech lender Point have closed on a $139 million bond secured by 1577 home equity investment contracts, demonstrating the growing trend of institutional investment in home equity.