Splitero provides owners with cash up front, similar to a home equity loan or line of credit, which they can use to pay off debt, make home improvements, or make sizable purchases.
However, these borrowers choose to pay Splitero a portion of the increase in their home’s equity over the following 30 years rather than making monthly payments. How much Splitero makes over time depends on how much the house appreciates.
There’s a good chance that you’ve heard of Splitero if you’re a homeowner. We’ll look into what it is Splitero, how it functions, and who it can help today. By the time this Splitero review is over, we’ll have hopefully assisted you in determining whether or not Splitero is something you needs to think about for your circumstances as a homeowner.
what is splitero
A business that specialises in shared equity contracts is called Splitero. As a result, homeowners are now able to borrow money against the rising value of their properties. For those who want to benefit from the market’s current conditions without formally taking out any new loans, it can be a great option.
How does the Splitero operate? | how does splitero work
A shared equity agreement, also known as a home equity contract, is essentially a way to sell an investment firm a portion of the equity in your house.
You can access the equity in your home with the Splitero product without having to make the monthly payments associated with a conventional home equity loan or line of credit. This product is intended for homeowners who require cash for purposes such as debt repayment or home improvement projects.
Similar to a mortgage, Splitero will have a lien on the property, but since it’s not a loan, you won’t have to pay Splitero any interest or regular payments. Instead, when the contract expires, Splitero will receive a portion of the value of your house.
which usually happens when you decide to buy Splitero out or sell your house. For instance, Splitero might offer you a cash investment today equal to 10% of the current value of your home in exchange for 16% of the future value of your home when you sell it.
How much does Splitero cost?
The cost of a Splitero Inc. investment is not based on an interest rate, in contrast to loans. There are no interest charges or monthly payments. Instead, Splitero Inc participates in the growth of your property’s value and typically only makes a profit when you sell your house or choose to buy Splitero Inc out. When the contract expires, Splitero funding Inc. will receive a larger portion of your home’s value than it did when it first invested in it. Therefore, if the value of your home stays the same, Splitero Inc will turn a profit.
Splitero Inc will earn more money if the value of your house rises. Splitero funding Inc will likely make a smaller profit or even lose money if the value declines.
An origination fee starting at 1.99% of their investment is part of the Splitero program.
Costs of Splitero Closing ($)$250 – $550
Origination Fee for Splitero (%)1.99% – 3.99%
How can I apply using Splitero?
You can get a general idea of how much of the equity in your home you could invest in using the equity calculator on Splitero’s website. With just your address and contact details, Splitero can estimate your property’s value automatically.
You can manually adjust the estimated value of your home using the calculator on the pricing page to determine how much you might be able to access.
Splitero asks for your personal information after you enter your address and view your estimated home value.
- Name
- Inbox address
- Call-in number
- (Estimated) credit score
It will prequalify you for an investment offer, but it won’t even run a “soft” credit check on you; instead, it will rely primarily on information from your home’s public records to estimate its value.
Like what you see as an offer? To access your offer and finish the application process, confirm your email address. This might entail supplying more details, like your:
- Social Security number.
- Information about lienholders and the outstanding loan balance
- contract term of preference
After you apply, Splitero will consider it and make a decision. If your investment offer is accepted, you might find out about it in just one day.
Who is eligible to use Splitero?
Homeowners must have equity in their properties and fulfil certain financial requirements in order to be eligible for Splitero. In order to make sure the property meets its standards, Splitero will also need to inspect it personally. The value must range from $150,000 to $5,000,000. The following is a list of the acceptable property types:
- Condominiums for one-family homes
- Townhouse buildings with 2-4 units
- both owner-occupied and rental properties
- held by private individuals, approved trusts, and approved limited liability companies (LLCs)
- mixed-use if occupied by a third party
- Visit their website or give them a call if you’re interested in learning if you qualify.
Does Splitero have a customer service number?
You can reach Splitero by calling 888-365-3372. The hours of customer service are not listed online.
Splitero can be reached via email at hello@splitero.com.
Use Facebook or Twitter (@splitero) to get in touch with a representative if you prefer social media.
Live chat and in-person options are not available on Splitero.
splitero reviews | splitero review
Splitero is a nonbank financial services provider with headquarters in San Diego, California, and was founded in 2021. In the USA, Splitero are offered in 3 states.
Reading customer reviews is one of the best ways to determine how well a company’s goods and services will satisfy your needs. Trustworthy sites for customer reviews include Trustpilot and the Better Business Bureau (BBB).
Consumer reviews for Splitero are scarce, though, as it is a relatively new product. A single review on Trustpilot gives the business 3.2 out of 5 stars due to a contentious home appraisal value and approval procedure.
Splitero has a rating of 1 out of 5 stars on the BBB website as of the time of this writing because there is only one review available. Determinations of home equity and application approval are also discussed in this review.
Pros and cons of Splitero
Pros
- No ongoing monthly fees
- 30-year terms (can be shorter, but the APR will be higher)
- Simple access to liquid money
Cons
- loss of a portion of the property’s equity
- APR is high for shorter time periods.
- restrictions on property types
How is shared equity different from a HELOC?
In contrast to a home equity loan or HELOC, a shared equity agreement requires you to pay Splitero back when you refinance, sell your home, or repay the entire amount borrowed rather than on a monthly basis.
Consider a scenario in which you face an urgent financial need. You don’t want to take out any more loans, and you’re sure you’ll be able to pay Splitero back when you sell your house. A shared equity agreement can be extremely sensible in that situation.
what is a shared equity agreement?
An arrangement wherein two or more parties concur to divide ownership of an asset is known as a shared equity agreement. It is a piece of property in this instance. Each party to the agreement will own a portion of the asset and share in any gains or losses resulting from it. A business called Splitero offers to join forces with you in a shared equity arrangement.
Homeowners can receive a lump sum of money that they can use however they like (for home improvements, debt relief, or other uses) in exchange for allowing Splitero to own equity.
The amount that homeowners are eligible to receive is determined by the value of their residence and Splitero’s own evaluation of the property.
For instance, you could get $65,000 if your home is worth $500,000 in total. Splitero accrues more equity over time if your home’s value increases during the loan’s term. On the other hand, Splitero will share in that loss with less equity in the home if your home depreciates.
Why you should enter into a shared equity agreement
If you’re looking for an alternative to a conventional mortgage loan, a shared equity agreement may be the best option for you. A shared equity agreement can be a way to finance additional projects if you don’t have the income or credit score required to be approved for another mortgage.
If you’re trying to avoid taking on more debt, that’s another reason to take into account a shared equity agreement. A shared equity agreement can give you the money you require without adding to your debt burden if you are already struggling with credit card debt or other loans.
Last but not least, think about a shared equity agreement if you care more about having access to cash than you do about the equity in your house. This is particularly true if you locked in previously low interest rates during the current environment of rising interest rates. Maybe you want to invest in the stock market but lack the funds to do so.
If any of the above apply to you, Splitero may be a good choice because it offers access to cash with no monthly payments, a low APR (for longer terms), and no fees. You can benefit from other market opportunities by being able to unlock the value of your home’s potential future price growth.
What limitations on property exist in Splitero?
There are some restrictions on real estate and property. Real estate belonging to the following categories is ineligible:
- properties with 5 units or more
- Modular, mobile, and prefabricated properties for commercial and agricultural use
- Log homes
- Houseboats
- houses with unusual architectural styles (such as geodesic, earth bermed, or shipping container homes, etc.)
- properties with a minimum of five acres
- Timeshares, fractional, or segmented ownership in vacant land
The criteria set forth by Splitero disqualify these properties. Give them a call if you’re not sure if your property qualifies. Their support team will be pleased to assist you.
Read More:–“how to increase mortgage pre approval amount“
FAQS
Does Splitero require a high credit score?
Without a doubt. Without a credit check, Splitero can help you access cash for any purpose. Since they are not a bank, all payments must be made in cash, through home sales, or refinancing. Instead of acting as a debt collector, Splitero can assist you as a partner in the equity of your home.
How does Splittero generate income?
Splitero, and any other company that offers shared home equity, makes money by assessing an origination fee and partaking in the gains from any property appreciation. Origination fees typically range from 1.99% to 3.99% for Splitero, depending on your credit score and other application-related factors. Origination fees typically hover around the 3% mark.
How long does it take Splitero  to close a deal?
In as little as 14 days, Splitero may finance a deal.
What kinds of property does Splitero  consider?
Investors in shared equity frequently have limitations on the kinds of properties they will back. Splitero will take into account joint equity agreements backed by the following kinds of real estate:
- first house
- secondary residences and vacation homes.
- Properties for investment
Is Splitero a legit company? | is splitero legit
A young company, Splitero began operations two years ago. Most members of the SuperMoney community do not recommend Splitero.
Maximum investment offered by Splitero
$500k is the maximum investment amount. The value of the house and the amount of equity you own in it will determine your actual offer.
Summary
A shared equity agreement called Splitero enables homeowners to take out loans against the rising value of their properties. There are some advantages and disadvantages, but overall, with a 30-year repayment period and no monthly payments, it might be a good choice for people looking for an alternative to conventional loans.
Splitero is suggested for particular use cases. Splitero isn’t the best option if maintaining 100% equity in your home is important to you (for reasons such as leaving the estate to your children or other factors). However, Splitero could revolutionise your long-term wealth if you were able to use that money wisely and effectively. Should a financial emergency arise, it can also aid in preventing the financial disasters that frequently accompany the use of predatory loans.