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Important Note: Noah has paused accepting new applications. The CEO has said they will restart applications at a later date, but no timeline has been provided. For other options, check out the best home equity sharing companies.
What we like:
Offers a financial protection program
|Cash offer||$30,000 – $500,000|
|Term length||10 years|
|Minimum credit score||580|
|State availability||CA, CO, MA, NJ, NY, OR, UT, VA, WA, DC|
Noah is a home equity sharing company that allows homeowners to sell a portion of their home’s future value in exchange for upfront cash. Currently, the company serves homeowners in certain parts of California, Colorado, Massachusetts, New Jersey, New York, Oregon, Utah, Virginia, Washington, and Washington, D.C.
Are you in one of these areas and in need of cash for home repairs, medical bills, or another urgent need? If so, use this Noah review to learn about the company’s process, eligibility criteria, investment amounts, and more.
In this review:
- How does Noah work?
- How does Noah determine how much to invest?
- How does the term of the agreement work?
- Are there any costs with a Noah investment?
- Pros and cons
- Customer ratings and reviews
- Eligibility requirements
- How do I apply with Noah?
How does Noah work?
Noah essentially becomes an investor in your home. The company buys a share of the home’s future value and gives you a lump-sum payment in return. Then, once your 10-year term is up, you buy out Noah’s investment by selling the home, refinancing, or tapping your savings.
Some homeowners use equity sharing agreements like these to finance renovations or home repairs without taking on a loan (and a subsequent monthly payment).
While Noah benefits if your home increases in value, it also shares in any loss too. The company gets a straight percentage of your home’s value once the 10-year period is up.
How does Noah determine how much to invest?
Because Noah also shares in any loss of a home’s value, the company is picky about which properties they invest in.
In total, Noah offers up to $500,000 in funding, though the exact amount will depend on factors like your home’s value, your mortgage balance, your equity stake in the property, and your financial picture. At a minimum, the property must be located in an eligible neighborhood, and it needs a value of at least $175,000. You also need to have at least a 15% equity stake in the home and a minimum credit score of 580.
According to the company, it typically offers homeowners anywhere from 5% to 20% of their home’s current value.
How does the term of the agreement work?
Unlike a loan, a Noah home equity sharing agreement comes with no monthly payments. Instead, you’ll give Noah a percentage of your home’s future value. You’ll have up to 10 years to buy out Noah’s position.
Ways in which you can buy out Noah’s position include:
- Selling the home: In this scenario, you’d pay Noah’s share out of your sales proceeds.
- Refinancing your mortgage loan: With a cash-out refinance, you can tap your home’s equity, get a lump-sum cash payment, and use that to buy out Noah’s share.
- Using savings or other cash: You can also take money from savings, a windfall (maybe an inheritance, for example), or other liquid funds you might have to pay off Noah.
The right choice will vary depending on your financial situation, when you sell, and more. If you’re not sure, you may want to talk to a financial advisor for guidance.
Are there any costs with a Noah investment?
There are costs to sharing your home equity with Noah. The biggest is typically the share of your home’s value they take.
Here’s an example: Say Noah buys a 20% share in your home’s future value. Currently, the home is worth $300,000, and they give you $60,000. In 10 years, when your term comes to an end, your home is worth $375,000, meaning it has appreciated by $75,000. In this case, you’ll owe Noah 20% of the appreciated value, plus the original amount you received. So, your payment to Noah will be $75,000.
There are also fees associated with the transaction, namely, a $2,000 or 3% service fee—whichever is higher. There are various third-party fees (title company, notary, recording, etc.) and additional service fees from Noah. They include a $50 fee to receive your buyout statement and a $300–$800 appraisal fee for determining your home’s final value growth.
Pros and cons
- Get upfront cash for any purpose: There’s no limit to what you can spend your investment money on. Use it toward home improvements, college tuition, or even paying off other debts.
- Avoid a monthly payment: You won’t have to deal with an extra monthly payment like you would with a home equity loan or home equity line of credit (HELOC).
- Potentially receive more than you pay back: Noah shares your gains and losses. If your home loses a significant amount of value when your term is up, you could end up paying back less than your initial investment.
- Qualify with lower credit: You only need a 580 credit score to qualify for a home equity sharing agreement. Many other financing products require a much higher score.
- It may cost you much more than you’d have paid for other financing products: If your home increases significantly in value, you could end up repaying Noah a lot more than you received. It may even be more than you would have paid in interest on a cash-out refinance, home equity loan, or HELOC.
- Requires a good amount of equity upfront: You won’t be eligible for a Noah equity sharing agreement unless you have at least 15% equity in your home.
- Comes with several upfront fees: You’ll need the cash to cover Noah’s fee, as well as several other upfront service and transaction fees from third parties.
Customer ratings and reviews
There are several home equity sharing companies out there, so it’s important to look at customer reviews and ratings when choosing who to go with.
Generally speaking, Noah has very good reviews from homeowners who have used the service. The company has 5 out of 5 stars with the Better Business Bureau and has had just two complaints in the last three years. On Trustpilot, a whopping 89% of reviews say their experience was either “excellent” or “great.”
|Better Business Bureau (BBB)||5 out of 5|
|Trustpilot||4.5 out of 5|
Ratings are accurate as of January 17th, 2022.
Noah eligibility requirements
To get a home equity investment from Noah, both you and your property will need to meet certain requirements. Here’s how those break down:
|Property||Single-family residential units, condominiums, and townhouses|
|Location||CA, CO, MA, NJ, NY, OR, UT, VA, WA, or DC|
|Home value||$175,000 – $3.5 million|
|Home equity||Have at least 15% equity|
|Credit score||At least 580|
|Credit report||Can’t have multiple 60-day or 90-day delinquencies|
|Income||Must have enough verifiable income or savings to cover outstanding debt|
|Debt-to-income||60% or less (if more, Noah investment must be used to pay off debt)|
|Prequalify||See if your home is eligible|
The homeowner requirements are notably looser than other equity products. Home equity loans, for example, typically require a 620 credit score and a DTI of no more than 43%.
How do I apply with Noah?
To apply for a Noah home equity sharing agreement, you start online at Noah. You’ll then get your estimate, and if it meets your needs, you can proceed with the full online application.
Here’s what the process looks like from start to finish:
- Fill out the form at Noah.co, and get your investment estimate.
- Complete the full online application and submit any required documentation.
- Get your home appraised. This will determine the value Noah will base your investment on.
- Sign your agreement and receive your funds.
The recording was taken on January 17th, 2022.
If you want to see how Noah compares to other companies, check out the best home equity investment companies or review competitors and alternatives to Noah. For a direct comparison, check out our Noah vs Hometap, Noah vs Unison, or Noah vs Unlock comparisons.4.3 Noah
Author: Aly Yale