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Do you need to tap into your home’s equity? Perhaps you would like to pay off high balances on your credit cards or some other type of debt. Or maybe you would like to tackle a home improvement project but need a cash infusion to get things rolling.
Using your home’s equity can be a great way to get the cash you need to deal with problems and projects big and small. In the past, the primary way to access your home’s equity was through a lender, via a home equity loan or home equity line of credit (HELOC).
However, thanks to innovative companies like Noah, you can now get cash from your home’s equity without taking on any sort of debt at all. Let’s take a look at Noah and how its equity investment process works, so you can determine whether or not it is a good fit for you.
Onto our Noah.co review!
What is Noah?
Noah, formed in 2016 and headquartered in San Francisco California is an innovative finance company. Noah’s key service is allowing homeowners to tap into up to their home’s equity without taking out any sort of loan.
Instead, eligible homeowners simply apply to receive a cash payout for a share of their home’s equity from Noah and agree to pay back Noah’s investment, with any agreed-upon appreciation, at some point in the future.
Using Noah’s equity investment services lets you avoid tying up your credit and managing monthly payments that you’d otherwise have to do with a traditional home equity loan or HELOC.
So, you’ll have cash in your bank account to use and will still be able to access your credit to make other major life purchases as well.
To be eligible for Noah, your home must be located where Noah operates. Noah currently provides services to homeowners in California, Colorado, Washington DC, Maryland, New Jersey, New York, Utah, Oregon, Utah, and Washington State.
The home itself must be valued at between $300,000 and $3,500,000, and you must have at least 25 percent of the equity invested in it.
You cannot have more than two liens on the property, such as a mortgage or HELOC, and cannot be undergoing construction beyond minor renovations or repairs.
The homeowner requesting Noah’s services should have a credit score of 600 or greater, and a debt to income ratio of 60 percent or more.
The homeowner applying to work with Noah also must not be undergoing a bankruptcy proceeding, either.
Available in the following states:
- Washington DC
- New Jersey
- New York
- Washington State
How it Works
Working with Noah is simple and straightforward, and the entire process occurs almost entirely online. You simply go to Noah’s website and fill out an online form to apply which takes five to ten minutes.
Noah will then provide you an initial nonbinding estimate of how much home equity you could tap into. If you’re interested, you fill an additional, more detailed application; you will also need to have a home appraisal completed as well, the one step of the process that occurs offline.
Once all of these steps are complete, Noah will present a final offer for providing a home equity cash-out. If you accept it, the funds will be transferred to your account in a matter of days.
There are no payments required on Noah’s investment in your home equity and the equity investment is made on a ten-year time horizon. At some point along that horizon, you’ll have to pay back the share of equity Noah invested in your home.
If your home appreciated during that time, you’ll have to pay more; if it went down, you’ll be required to pay less.
Customers who want to contact Noah can do so via the following options:
- Phone:415-578-6515 Monday thru Friday from 8:00am-6:00pm PST.
- Email: Hello@Noah.co
- Online. You can also complete an online query form to contact Noah as well.
Noah, formerly known as Patch, has a rating of 4.6 on Trustpilot with over 50 reviews. This is considered excellent, although the overall number of reviews the company has received thus far is modest. 89 percent of the reviews that Noah received on Trustpilot are excellent, while only 2 percent of them are considered bad. Noah has been accredited with the Better Business Bureau since 2017 but does not currently have a BBB rating.
Pros and Cons
There are several pros and cons to consider before opting to use Noah; here are a few worth considering.
- No Monthly Payments. Like other home equity investment counterparts (see below), using Noah allows homeowners to avoid having to make the monthly payments they’d otherwise have to contend with if they’d tapped into their home’s equity with a traditional loan or HELOC.
- Easy. Almost the entire Noah process occurs online, so you can apply to use the company’s services from the comfort of your own home.
- Payback Cliff. If at the end of the ten-year term you are unable to settle with Noah, you could be forced to sell the house to meet your settlement obligations or take out some sort of loan to pay Noah back.
- Service Fee. Noah charges a service fee of either $2,000 or 3 percent of the value of your home when using their services.
The primary alternatives to Noah are Hometap and Point, both of which offer similar services for homeowners to access their equity. The traditional home equity loans and HELOCs offered by lenders are also alternatives to the kind of services Noah provides.
Noah.co Review: Parting Thoughts
If you want access to your home’s equity without making monthly loan payments or tying up your credit, then Noah may be a great choice for you. While there are some disadvantages to using a home equity investment service, tapping into your equity while avoiding additional debt can be a good option to improve your financial position over the long term.
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Enjoyed our Noah.co review?
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