Latest news with #HomeEquityLineofCredit
Yahoo
a day ago
- Business
- Yahoo
I was running out of cash and needed to make ends meet. My home equity agreement saved me.
Eileen Perry, 57, was unemployed and struggling to buy groceries and pay her bills. She turned to a company that gives homeowners cash in exchange for a share of the home's future sale price. Perry will owe thousands when she sells her home, but says the relief she has now makes it worth it. This as-told-to essay is based on a conversation with Eileen Perry, a 57-year-old from North Carolina. Perry entered a home equity agreement with the financial services company Unlock to access her home equity. This conversation has been edited for length and clarity. I'm originally from New Jersey, where I lived with my husband and my son. In 2023, my husband passed away suddenly from pancreatic cancer. He left me well-off enough that I was able to buy a home in North Carolina for $260,000 outright, in cash. Unfortunately, timing is everything. I had an on-the-job injury; I broke my back, and I'm still suffering from back issues. I'm currently waiting for my permanent disability Social Security, so I have no income. My son, who lives with me — he's 27 — is also disabled and unable to work right now. So the two of us have no income. We've been in North Carolina for almost two years, and my sister has supported us. But I didn't want to keep relying on her. I knew I owned 100% of my home's equity and thought, "Maybe there's something I can do with this." I tried to get a home equity loan, or a Home Equity Line of Credit (HELOC). But because I have no income, and had fallen behind on all my credit cards and bills, my credit score took a major dive. I couldn't qualify. I even tried to get a loan with a cosigner, but my application was denied. It felt like everyone was closing a door in my face, but I still thought, "There has to be someone out there who can help me." I was scouring the internet when a home equity company, Unlock, popped up. I started researching home equity agreements and thought it could be a perfect fit for me. Unlock's home equity agreement (HEA) is different from a loan, HELOC, or reverse mortgage, which typically has an age requirement. Instead of owning the deed or title to a home, they place a lien on the property. Homeowners access their equity by receiving an investment payment from Unlock. In exchange, the company receives a percentage of the home's value. There are no monthly payments, and homeowners can buy out their agreement at any point within 10 years, either with partial payments or all at once. For many homeowners, the equity buy-back happens when they sell their home. To qualify for an agreement, I needed a valid ID, proof of ownership of my home, and a credit score of at least 500, which was great for me. I also needed current and up-to-date homeowner's insurance. My $45,000 home equity agreement became effective in September 2024. After paying $2,205 to Unlock for an origination fee, $340 for the home's appraisal, and $720 for settlement costs, I received $41,735 in October for my first HEA. In May 2025, I needed more funds for day-to-day expenses, so I canceled the original HEA balance and replaced it with a new HEA agreement totaling $93,500. My funds have paid off outstanding property taxes and other bills I wouldn't have been able to cover. They also helped us afford everyday expenses like groceries and gas. I finally have peace of mind and can sleep at night. It's been almost two years since my husband passed away. There were days when I didn't know how my son and I were going to eat, whether we would be sitting in the dark, or where we were going to live. Having a home equity agreement has truly been a gift — call it divine intervention. I'm now selling my house to move back to New Jersey. Of course, certain things are required to put your home on the market or pass inspection, like having an air conditioning system and bathrooms with good plumbing. In February, the plumbing in my house went out completely. I had no shower or toilet for almost two months. The bathrooms had to be completely remodeled because of severe water damage. The influx of money helped me pay for a new line when my homeowner's insurance wouldn't cover it. That line alone cost nearly $6,000, just for the plumbing. Without the money from the home equity agreement, I doubt I'd be able to sell my home. In May, my home was appraised at $290,000. Since I received a $93,500 investment — about 32.24% of the home's value — if I sell this month, I'd owe about $94,000 of my home's equity. Initially, my friends and family were hesitant about me taking on a home equity agreement because they feared I might get a much higher interest rate, or they were concerned about how I was going to pay the money back. But I knew I wasn't going to be staying in North Carolina forever, and putting my house on the market was going to be the next option. I didn't think getting an HEA agreement would be a problem because I would have a profit left over after I sold my home. This experience has been life-changing. Unlock was not involved in the writing of this story. The views contained within represent the author's personal views. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 days ago
- Business
- Business Insider
I was running out of cash and needed to make ends meet. My home equity agreement saved me.
This as-told-to essay is based on a conversation with Eileen Perry, a 57-year-old from North Carolina. Perry entered a home equity agreement with the financial services company Unlock to access her home equity. This conversation has been edited for length and clarity. I'm originally from New Jersey, where I lived with my husband and my son. In 2023, my husband passed away suddenly from pancreatic cancer. He left me well-off enough that I was able to buy a home in North Carolina for $260,000 outright, in cash. Unfortunately, timing is everything. I had an on-the-job injury; I broke my back, and I'm still suffering from back issues. I'm currently waiting for my permanent disability Social Security, so I have no income. My son, who lives with me — he's 27 — is also disabled and unable to work right now. So the two of us have no income. We've been in North Carolina for almost two years, and my sister has supported us. But I didn't want to keep relying on her. I knew I owned 100% of my home's equity and thought, "Maybe there's something I can do with this." I tried to get a home equity loan, or a Home Equity Line of Credit (HELOC). But because I have no income, and had fallen behind on all my credit cards and bills, my credit score took a major dive. I couldn't qualify. I even tried to get a loan with a cosigner, but my application was denied. It felt like everyone was closing a door in my face, but I still thought, "There has to be someone out there who can help me." An HEA was the right solution for me I was scouring the internet when a home equity company, Unlock, popped up. I started researching home equity agreements and thought it could be a perfect fit for me. Unlock's home equity agreement (HEA) is different from a loan, HELOC, or reverse mortgage, which typically has an age requirement. Instead of owning the deed or title to a home, they place a lien on the property. Homeowners access their equity by receiving an investment payment from Unlock. In exchange, the company receives a percentage of the home's value. There are no monthly payments, and homeowners can buy out their agreement at any point within 10 years, either with partial payments or all at once. For many homeowners, the equity buy-back happens when they sell their home. To qualify for an agreement, I needed a valid ID, proof of ownership of my home, and a credit score of at least 500, which was great for me. I also needed current and up-to-date homeowner's insurance. My $45,000 home equity agreement became effective in September 2024. After paying $2,205 to Unlock for an origination fee, $340 for the home's appraisal, and $720 for settlement costs, I received $41,735 in October for my first HEA. In May 2025, I needed more funds for day-to-day expenses, so I canceled the original HEA balance and replaced it with a new HEA agreement totaling $93,500. My funds have paid off outstanding property taxes and other bills I wouldn't have been able to cover. They also helped us afford everyday expenses like groceries and gas. I finally have peace of mind and can sleep at night. An HEA has changed my life for the better It's been almost two years since my husband passed away. There were days when I didn't know how my son and I were going to eat, whether we would be sitting in the dark, or where we were going to live. Having a home equity agreement has truly been a gift — call it divine intervention. I'm now selling my house to move back to New Jersey. Of course, certain things are required to put your home on the market or pass inspection, like having an air conditioning system and bathrooms with good plumbing. In February, the plumbing in my house went out completely. I had no shower or toilet for almost two months. The bathrooms had to be completely remodeled because of severe water damage. The influx of money helped me pay for a new line when my homeowner's insurance wouldn't cover it. That line alone cost nearly $6,000, just for the plumbing. Without the money from the home equity agreement, I doubt I'd be able to sell my home. In May, my home was appraised at $290,000. Since I received a $93,500 investment — about 32.24% of the home's value — if I sell this month, I'd owe about $94,000 of my home's equity. Initially, my friends and family were hesitant about me taking on a home equity agreement because they feared I might get a much higher interest rate, or they were concerned about how I was going to pay the money back. But I knew I wasn't going to be staying in North Carolina forever, and putting my house on the market was going to be the next option. I didn't think getting an HEA agreement would be a problem because I would have a profit left over after I sold my home. This experience has been life-changing.
Yahoo
15-05-2025
- Business
- Yahoo
Upstart Holdings (NasdaqGS:UPST) Sees 28% Stock Surge Last Month
Upstart Holdings recently announced a significant turnaround in its first-quarter earnings, with revenue reaching $213 million, a substantial increase from the previous year. The company's improved financial performance, coupled with its optimistic guidance for the rest of 2025, highlights a strong growth trajectory. Over the past month, UPST stock rose 28%, likely buoyed by strategic partnerships with Lake Trust Credit Union and First Commonwealth Federal Credit Union, enhancing its market presence. This surge aligns with broader market trends, as the Nasdaq Composite and S&P 500 also experienced gains, driven by positive economic data and eased global trade tensions. Every company has risks, and we've spotted 2 weaknesses for Upstart Holdings you should know about. The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. Upstart Holdings' recent financial turnaround and strategic partnerships have sparked promising developments for the company's long-term narrative. The company achieved a total return of 82.57% over the last year, driven by enhanced market presence through partnerships with institutions like Lake Trust Credit Union and First Commonwealth Federal Credit Union. The performance aligns well against the broader market, as its one-year return surpassed both the Nasdaq Composite and the S&P 500 benchmarks, which also saw gains. These positive changes bolster confidence in Upstart's forecasted revenue and earnings growth, potentially improving its market position. The projected impact on revenue and earnings is significant, with analysts forecasting annual revenue growth of 29.9% over the next three years. This growth is supported by improvements in underwriting and expanding Home Equity Line of Credit (HELOC) offerings, enhanced through banking collaborations. Despite being currently unprofitable with earnings of US$66.43 million, the focus on risk reduction and cost efficiency positions the company for profitability within three years. With a current share price of US$49.19 and a potential price target of US$73.92, there's a substantial gap, reflecting a 33.5% potential upside if forecasts hold true. However, investors should continually re-evaluate assumptions as external factors and industry dynamics evolve. Our expertly prepared valuation report Upstart Holdings implies its share price may be too high. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:UPST. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
20-04-2025
- Business
- Yahoo
I'm 38, lost my job and my basement just got flooded — which will cost me $20K. Is a HELOC my only option?
One of the biggest risks that come with owning a home is the potential for emergency repairs. And while there's never an ideal time to be hit with an urgent reno that'll cost you thousands, these emergencies have a knack for popping up at the worst of times. Let's say, for example, that you're 38 years old and you were recently laid off due to company downsizing. You're in the process of looking for a new job when, out of nowhere, a pipe bursts and your basement is flooded. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how You've always been financially responsible, and you've paid off more than half of your mortgage. But mortgage payments and saving for retirement has made it tough for you to save money for emergencies. And since pipe bursts that lead to flooding often require extensive repairs, you're now staring at a $20,000 emergency expense at a time when you don't have a stable income. You're in a jam, and you'll likely need to borrow money to pay for this emergency renovation. Making matters worse, your parents don't have any money that they can loan to you. One of the options that you may consider is a Home Equity Line of Credit (HELOC), which allows you to use the equity you've built in your home to borrow money. But here's the big question: should you take out a HELOC while you're unemployed, or is that a dangerous decision considering you don't currently have a steady income? Let's get into whether a HELOC is a good decision for you. A HELOC is a line of credit that lets you borrow money against the equity you've built in your home, usually up to 85% of your home's appraised value, minus what you still owe on your mortgage. You can draw from it as needed during what's called the 'draw period' (typically five to 10 years) and during that time, you only have to make interest payments. After that, you enter the 'repayment period,' when you start paying back both the principal and interest. If you already have a HELOC open and you're confident that you can find employment within a few months, using it might make sense, especially for urgent home repairs. But if you'd need to apply for one while unemployed, this might not be the best strategy — unless you can prove to the lender that you have alternative income or savings. In that case, it may be time to consider alternatives. Let's walk through the pros and cons of a HELOC in this situation. Read more: The US stock market's 'fear gauge' has exploded — but this 1 'shockproof' asset is up 14% and helping American retirees stay calm. Here's how to own it ASAP When you're staring down an unexpected $20,000 home repair with limited savings, a HELOC can look like a solid financial lifeline. But you should do your homework before acting on this option. One of the biggest perks is that interest rates are usually much lower than what you'd get with a credit card or personal loan, especially if you have good credit. That alone can save you a chunk of change over time. HELOCs also offer flexibility that most loans can't match because you're not forced to borrow a big lump sum all at once. Instead, you can draw what you need, when you need it. There's also a potential tax break in play. If the funds go toward qualified home improvements, the interest might be deductible come tax time. Not everyone qualifies and the IRS rules can change, so it's worth running this perk by a tax professional to see if you qualify. Don't forget that this is equity you've already built. Instead of racking up high-interest credit card debt, you're tapping into an asset you own. In some cases, that can be a smarter way to ride out a rough financial patch. But it's also important to understand the risks. If you're unemployed and don't already have a HELOC in place, getting one approved could be tough. Lenders usually want proof of reliable income before handing over access to your home's equity. Without that, you could get turned down or face higher interest rates as well as stricter repayment terms. And of course, a HELOC is backed by your home, so if things don't work out — such as borrowing more than you can handle or your job search takes longer than expected — you could risk losing your house. There's also the matter of variable interest rates. Most HELOCs don't come with a fixed rate, which means your monthly payments could go up if interest rates rise, which is not ideal when you're already juggling financial instability. While HELOCs can be great in a pinch, they're not a replacement for long-term financial stability. They can buy you some time, but they won't solve the bigger picture if income doesn't come back into the equation soon. If using a HELOC feels like stepping into risky territory, you're not completely out of luck. There are other ways to handle financial emergencies without putting your house on the line. If your credit is in good shape, you might qualify for a credit card with a 0% introductory annual percentage rate (APR). That could give you a year or more to pay for the repairs without accruing interest, but the key is to be sure that you have a plan to pay off the balance before the promotional period ends. Credit unions are another option worth exploring, as they tend to be more flexible with personal loans than traditional banks and often offer better rates. If you are a member with a credit union or have a local branch nearby, start there. Depending on where you live, there may be government or nonprofit programs available to help cover emergency home repairs, especially for issues like leaks, water damage or mold. These programs often support veterans, American Indian or Alaska Natives, those with limited income and residents of rural areas. Picking up temporary or gig work can also be helpful as it can improve your standing with lenders. Even a modest stream of income is better than no income when you're trying to qualify for financial loans. Using a HELOC to weather a financial storm isn't necessarily a bad idea if you already have one open and feel confident about landing a job soon. In that case, borrowing modestly to keep your home in working order could be a smart, cost-effective move. But trying to open a new HELOC while unemployed? That's a much riskier path. Without income, lenders may shut the door on you. And even if you happen to get approved for a HELOC, it could put your most valuable asset — your home — in jeopardy, especially if your financial situation doesn't bounce back in time. When it comes to deciding on a HELOC, weigh your options and consider speaking to a financial advisor before making any big decisions. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Associated Press
25-03-2025
- Business
- Associated Press
How to Buy a New Home Before Selling Yours: Smart Strategies for 2025
03/25/2025, San Francisco, CA // KISS PR Brand Story PressWire // Introduction: The 2025 Buy-Sell Dilemma In today's competitive housing market, many homeowners are asking the same critical question: how to buy a house before you sell yours? With limited inventory, rising interest rates, and homes selling faster than ever, the pressure to act quickly can be overwhelming. For families or individuals who've found their dream home but haven't yet sold their current property, the challenge is both emotional and financial. Fortunately, 2025 brings several smart strategies that make this leap more manageable. Whether you're considering bridge loans, tapping into home equity, or exploring modern sale-leaseback options, there are practical ways to secure your next home without getting stuck in transition. Let's explore six essential buying strategies before selling and how to minimize risks and maximize value. 1. Assess the Current Real Estate Landscape Understanding the 2025 market is critical before jumping in. Inventory remains historically low in many regions, which means desirable homes are getting snapped up quickly. At the same time, interest rates have crept up compared to previous years, impacting mortgage affordability. If you're selling your home in a high-demand area, you may benefit from strong offers. But buying in the same market requires preparation. You'll likely face bidding wars and shortlisting windows—making it even more important to have your financing lined up before making an offer. Tip: Start with a mortgage pre-approval and consult a local agent experienced in managing both sides of a transaction. 2. Explore Bridge Loans for Fast Access to Funds A bridge loan is a short-term financial solution that gives you access to equity from your current home to help fund the down payment on your next home. You repay the loan once your old home sells. Pros: Cons: High interest rates (typically 8.5–10%) Short repayment periods You'll be managing two mortgage payments temporarily While bridge loans come at a premium, they provide flexibility to act fast when you find the right property—especially helpful in a competitive seller's market. 3. Tap Into Home Equity or Consider a Cash-Out Refinance Another common strategy is using a HELOC (Home Equity Line of Credit) or cash-out refinance to unlock equity tied up in your current home. Home Equity Loan or HELOC Functions like a credit line, allowing you to draw funds as needed Must be secured before your home is listed Can carry favorable interest rates (often lower than bridge loans) Cash-Out Refinance Keep in mind: Your lender will factor in the extra debt when calculating what you can afford. It's best to speak with a mortgage advisor to understand how this impacts your buying power. 4. Leverage a Sale-Leaseback Agreement A sale-leaseback can be a creative solution if you're looking to sell your home and stay in it temporarily while you buy your next one. You sell your home to a buyer and lease it back for a short term, giving you the liquidity to buy and the time to move comfortably. Benefits: Drawbacks: For those seeking more control over their timeline, this strategy can simplify the transition significantly. 5. Consider Alternative Financing Solutions Besides bridge loans and HELOCs, other funding options can help fill the gap between buying and selling: 401(k) Loan – Borrow up to $50,000 from your retirement savings without a credit check, but beware of penalties if you leave your job or fail to repay. Securities-Backed Line of Credit (SBLOC) – Borrow against your investment portfolio without liquidating assets, preserving your market position and avoiding capital gains taxes. Family Gift – Acceptable for many lenders (with proper documentation) and can significantly reduce upfront financial stress. Lower Down Payment – Opting for less than 20% down frees up cash but may result in higher interest rates and mortgage insurance. Evaluate your comfort with debt and risk, and work with a financial advisor to understand the implications of each route. 6. Prepare Your Home for a Quick and Profitable Sale If you're focused on how to buy a house before you sell yours, then selling your home quickly—and for top dollar—is essential. Strategic preparation can shorten your time on the market and reduce the financial strain of owning two homes. Here are proven tips (based on recent expert advice): A well-prepped, market-ready home reduces the likelihood of delays, helps justify your asking price, and makes the entire process smoother. Conclusion: Plan Ahead, Move Smart Buying a new home before selling yours can feel like a high-wire act, but with the right planning and support, it's completely doable. In today's 2025 market—defined by rising interest rates, tight inventory, and buyer competition—being proactive is key. Whether you're leveraging equity, considering a bridge loan, or exploring modern options like sale-leasebacks, make sure to weigh your risks, understand your finances, and prepare your current home for a fast sale. With help from a trusted real estate agent and lender, you'll be ready to secure your next home without unnecessary stress or delay.
