HELOC vs. Point (2026): Costs, Credit Scores & Tax Differences

When you compare a HELOC to Point, you are comparing a category to a company. A HELOC is a type of borrowing that hundreds of lenders offer. Point is one business, and its flagship product is a Home Equity Investment (HEI), which is a different thing entirely: cash today in exchange for a share of your home’s future value, with no monthly payment.

There is a twist most comparisons miss. Point sells both. Alongside its HEI, Point offers its own HELOC of up to $750,000, originated through Figure. So the real question is not Point or a HELOC. It is which of the two structures fits you, and then who to get it from.

This guide covers both. The short version is that a HELOC is usually cheaper if you can qualify and carry a payment, and Point’s Home Equity Investment exists for the homeowner who cannot do one or both of those things.

In this Article

• What You Are Actually Comparing
• HELOC vs Point: Side by Side
• Which Costs Less in Arizona
• Which Is Easier to Qualify For
• The Tax Difference Nobody Mentions
• How Do You Pay Back Point’s HEI?
• When Point’s Investment Wins
• When a HELOC Wins
• Frequently Asked Questions

What Are You Actually Comparing With a HELOC vs. Point?

Comparing a HELOC to Point means comparing a traditional debt product to a shared-equity agreement. That single distinction drives every other difference on this page.

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A HELOC is debt: A lender gives you a revolving credit line against your equity, usually in second position behind your mortgage. You draw what you need, you pay interest on the drawn balance at a variable rate, and you make a monthly payment. Draw periods typically run 10 years, after which the balance converts to principal and interest. When it is paid off, you are done, and every dollar your home gained belongs to you.

Point’s HEI is an equity share: Point gives you a lump sum now. There is no interest and no monthly payment. You settle within 30 years by selling, refinancing, or buying the agreement out, and you repay the original amount plus a share of your home’s increase in value. If your home is worth more then, Point’s share grows with it.

Point also sells a HELOC: Point’s is $15,000 to $750,000, originated through Figure rather than by Point itself, with a credit minimum around 640. Your initial draw is fully funded at closing at a fixed rate, and later draws float with the prime rate. It is a conventional credit line, so it belongs in the HELOC column of every comparison below.

That is why the honest framing is not brand against product. It is structure first, then provider.

How Do a HELOC and Point’s Home Equity Investment Compare?

A HELOC costs you interest and monthly payments. Point’s HEI costs you a share of your appreciation and nothing monthly. Here is where they diverge.

Curious whether Point fits your situation? You can see if you pre-qualify in minutes. See Your Point Eligibility.

Terms verified August 2026 and subject to change. HELOC figures are national averages and typical lender guidelines, not a quote. Confirm current terms directly.

Which Costs Less in Arizona, a HELOC or Point?

For most Arizona homeowners who qualify for both, the HELOC costs less. The reason is appreciation, and the Phoenix/Scottsdale market has produced a lot of it.

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Work through $80,000 on a $600,000 Scottsdale home, held eight years.

With a HELOC at roughly 7.4%, you pay interest on the drawn balance. Carry the full amount the whole time and you are looking at something near $47,000 in interest over eight years, plus a payment every month. Pay it down faster and the number drops, because interest only runs on what you owe.

With Point’s investment, you pay nothing monthly. At settlement you repay the $80,000 plus Point’s share of your home’s increase. Two things shape that share. Point applies a Risk-Adjusted Home Value, discounting your appraisal by as much as about 20%, and your appreciation is measured from that lower figure. Then Point’s percentage applies to the growth. In a market appreciating 5% a year, a $600,000 home reaches roughly $886,000 in eight years, and the share of that growth can substantially exceed the HELOC’s interest.

Point does cap the damage. Its Homeowner Protection Cap limits what you can owe, and your payoff is the calculated share or the capped amount, whichever is lower. Ask for your specific cap in writing, because that number is what makes the deal survivable in a fast market.

The honest summary: in a flat or slow market the two get closer, and in a strong Arizona appreciation stretch the HELOC usually wins on total cost. Our HEI vs. HELOC cost comparison runs the full Maricopa County math.

HELOC vs Point: Which Is Easier to Qualify For?

Point’s Home Equity Investment is easier to qualify for than a HELOC, by a wide margin. That is the entire reason the product exists.

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Most HELOC lenders want a credit score in the 620 to 680 range, verify your income, check your debt-to-income ratio, and cap combined borrowing at 80% to 85% of your home’s value. If you are self-employed with aggressive write-offs, retired on distributions, or rebuilding credit, that stack of requirements is where the conversation ends.

Point’s investment asks for a credit score around 500 and no income documentation. It looks at your home, your equity, and your credit, and prices the risk into the agreement rather than screening you out. You generally need to keep about 27% or more equity after funding, and Point records in at least third lien position.

Point’s HELOC sits in between, at roughly 640. Higher than most banks, so if credit is your obstacle, Point’s HELOC is not the answer and its investment is.

Property rules can disqualify you separately. Point requires a home worth at least $155,000, caps lot size at 7 acres, and excludes manufactured and mobile homes, co-ops, LLC-held title, and unusual construction such as log cabins and A-frames. Check that before you check anything else.

Is a HELOC or Point Better for Taxes?

The HELOC is better for taxes in most cases, and this difference almost never appears in comparisons.

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HELOC Tax Rules: HELOC interest is deductible when the money is used to buy, build, or substantially improve the home securing the loan, within the overall $750,000 mortgage debt cap. That rule was set by the 2017 tax law and made permanent in 2025. Spend it on a kitchen remodel and the interest generally qualifies. Spend it on credit card debt and it does not. One more condition matters: the deduction only helps if you itemize. Most filers take the standard deduction, and for them neither product produces a tax benefit.

Point HEI Tax Rules: Point’s appreciation share is a different animal. Deducting it as mortgage interest would require the agreement to be debt, and Home Equity Investments are structured specifically to avoid that, since you can owe less than you received if your home loses value. No debt means no interest, and no interest means nothing to deduct.

So on a renovation, a HELOC can produce a deduction that the investment cannot, and that gap does not show up anywhere in a rate comparison. Our guide to whether home equity agreement proceeds are taxable covers the full analysis. None of this is tax advice, and the treatment of these agreements is genuinely unsettled, so ask a CPA about your situation.

How Do You Pay Back Point’s HEI?

You must settle Point’s HEI in a single lump sum within 30 years.

Unlike a HELOC, which allows incremental monthly principal payments, Point’s agreement does not provide for partial paydowns. You settle the agreement through one of three paths:

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1. Selling the Home: Point receives its original payout plus its share of the appreciation directly out of escrow proceeds.
2. Refinancing the Primary Mortgage: Replacing your current mortgage with a larger cash-out refinance loan to buy out Point’s lien position.
3. Out-of-Pocket Cash: Paying Point back using savings, liquid assets, or an inheritance to clear the agreement while keeping the home.

Start planning your exit well before the deadline. A refinance requires qualifying at whatever rates and credit conditions exist then, which is a real risk for anyone who chose an equity investment because they could not qualify for a loan today. Our HEI settlement checklist walks through the timeline.

When Does Point’s Home Equity Investment Beat a HELOC?

An HEI is better than a HELOC when a monthly payment is not workable, when you cannot qualify for a credit line, or when you need a long runway before settling.

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• Your credit is below 620. This is the most common case by far. A 540 score closes the door at nearly every HELOC lender and leaves Point’s investment open.
• Your income is hard to document. Self-employed borrowers with heavy write-offs, commission earners, and retirees living on distributions run into DTI math that does not reflect their actual finances. Point’s investment skips income entirely.
• Another monthly payment would break your budget. If cash flow is the problem, adding a payment does not solve it.
• You want more than a decade before settling. Point allows up to 30 years, among the longest windows offered by major providers, and there is no prepayment penalty if you settle sooner.
• You want the option to take more later. Point’s Re-Point feature lets you access additional equity without ending the original agreement, which most providers do not offer.

When Does a HELOC Beat Point’s HEI?

A HELOC beats an HEI when you can qualify and carry the payment, which describes most homeowners with solid credit.

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• You keep all your appreciation. In an appreciating Arizona market this is usually the whole argument. Interest is a defined cost. An appreciation share is not.
• Costs are far more predictable. A HELOC’s rate moves with prime, but you can model it within a range. You cannot model an equity investment without guessing what your home does over eight years.
• Deductibility on improvements. Covered above, and worth real money on a large renovation.
• Draw only what you need. A credit line lets you take $20,000 now and $30,000 next year, paying interest only on what is outstanding. An investment is a single lump sum, and unused cash sitting in your account still costs you appreciation.
• You keep your future options open. Both products record a lien, but an active equity investment is harder to work around. Providers generally require it to be settled or subordinated before you can take a new HELOC, home equity loan, or cash-out refinance, and many lenders will not write behind a shared-appreciation lien. Taking the investment can close off the credit line for years.

The tradeoffs are real on this side too. HELOC rates are variable, the draw period eventually ends and payments jump, and a lender can freeze or reduce your line under specific conditions. Our guide to HELOC risks for Arizona homeowners covers all three.

Frequently Asked Questions: HELOC vs Point

EquitySquirrel, operated by Scout Media LLC, is an educational resource and is not a lender, HEI provider, or tax advisor. This content does not constitute financial, legal, or tax advice. Rate figures are national averages as of August 2026 and change constantly. Provider terms are subject to underwriting and change. Cost examples are illustrative and depend on your home’s appreciation, which cannot be predicted. Confirm current terms directly and consult a licensed professional before deciding. Aleksandra Kadzielawski, Lic #SA694336000.