Section 1
Getting started with Arex FAST
1In what states is Arex FAST available now?
Please see below for a list of states where Arex FAST is currently active.
We are moving quickly to bring Arex FAST to more property owners. If Arex FAST is not available yet in your area, please contact us and let us know that you are waiting for us.
Arex FAST is available to property owners in select areas of:
Arizona
California
Colorado
Connecticut
Florida
Georgia
Illinois
Maryland
Massachusetts
Michigan
Minnesota
New Jersey
New York
Nevada
North Carolina
Ohio
Oregon
Pennsylvania
Texas
Virginia
Washington
Washington DC
2How is Arex FAST different from a reverse mortgage?
With Arex FAST, you get many of the benefits of a reverse mortgage without the major drawbacks. As with a reverse mortgage, there are no monthly payments. A few key differences:
There is no minimum age to use Arex FAST. You must be 62 years old to qualify for a reverse mortgage.
Arex FAST doesn’t penalize you for taking a lump sum. With a reverse mortgage, choosing a lump sum costs more than getting monthly payments or a line of credit.
You don’t have to pay off your mortgage to qualify for a Point Property Equity Investment (PEI). A reverse mortgage requires first lien position. That means that if you have a mortgage balance, you need to pay it off using funds from the reverse.
FAST's PEI is structured differently from traditional loans. Instead of being subject to an interest rate, you share a portion of your home value’s growth with ArexFAST. A reverse mortgage charges a predetermined interest rate, regardless of how your home value changes.
You’ll never end up upside down on an investment from Point. If your property value drops beneath the Original Agreed Value your buyback cost will be smaller.
The FAST agreement is assumable. Unlike a reverse mortgage or a regular mortgage, this means that your heirs can assume your FAST agreement.
3How long does it usually take to be approved for Arex FAST?
Arex FAST's online application is designed to be quick. You can pre-qualify for Arex FAST in under two minutes, at which time you will be able to examine the details of your offer and pricing.
How much time it takes to get your funds depends on a few factors. You play a key role in the process. For complicated applications or for properties with title issues, the process can take 60-90 days. Motivated homeowners with clean titles can receive their funds faster. Always upload documents and respond to our team's requests promptly. The faster you provide information, the faster we can move.
4How much money can I get from Arex FAST?
Arex FAST’s investments range from $5,000 to $500,000. How much money you can get depends on your property equity. Your maximum offer is generally 20% of your home's value. You also need to keep at least 20% of your equity after the investment from FAST. In certain cases, you may need additional equity.
5Are second homes or investment properties eligible?
Yes, Arex FAST invests in investment properties, second homes and offices. Because these investments are perceived to carry more risk, they are subject to different underwriting criteria than investments in primary residences.
Section 2
Home renovation
1Can I remodel the home at any time?
As your investment partner, Arex FAST is an enthusiastic supporter of home improvements that add value to your home. You maintain full ownership and control over your home, so remodeling is your decision and only your decision.
2Will Arex FAST have to approve repairs and upgrades to my home?
You will never have to ask Arex FAST for approval to upgrade or repair your home. However, your agreement with Arex FAST requires you to perform basic maintenance on the property.
Section 3
Repaying to Arex FAST
1What is Arex FAST's tax treatment? What taxes do I pay?
Arex FAST is built to be tax-friendly for homeowners. However, you should consult with your tax advisor before taking an investment from Arex FAST. Tax laws are complex. They vary by state, and your situation may have unique characteristics. For many homeowners that Arex FAST invests with, the following is true:
Arex FAST pay taxes on its share of any appreciation, which reduces your capital gains if you exit through a sale.
If you repay Arex FAST at the end of the term without selling the property, there is no impact on the eventual capital gains on selling the home. There may still be an opportunity for other tax deductions.
The initial Point funds (also known as the Option Investment Payment) are a tax-deferred payment.
2How is my property's value determined?
Determining the Initial Value
For your pre-offer, Arex FAST uses your self-reported value for your home. As we move forward, we'll retain a licensed and independent appraiser or, where appropriate, use some other property valuation product to determine the value of your home, the Appraised Value.
An adjustment is applied to the Appraised Value to set the starting value for the contract, called the Original Agreed Value.
Determining the Ending Value
When you're ready to pay Arex FAST back, there are a few options for determining the ending value. If you're selling your home, we'll simply use the sales price, as long as it is an arm’s length transaction and the sale value represents the full market value of the property. If you repay Arex FAST through a refinance or another source of cash, we'll determine the property's value using an appraisal, AVMs, or a broker price opinion (BPO).
3Can I repay Arex FAST before the end of the term?
You have the flexibility to buy Arex FAST out at any time during your term. There's no lockout or prepayment penalty. Arex FAST is with you for as long – or as short – as you'd like.
4What if I don't sell my property before the end of the term?
If you don't want to sell the property, you can choose to do either of the following at any time during the term (without penalty):
buy out Arex FAST based on the appraised fair-market-value of the home at that time
finance out Point with a HELOC, home equity loan or reverse mortgage based on the appraised fair-market-value of the home at that time
5Are there really no monthly payments associated with Arex FAST?
Yes, there are really no monthly payments, which makes a Home Equity Investment a great financing solution for homeowners looking to improve cash flow. Instead, homeowners pay back in one lump sum any time they like before the end of their investment term, typically when they refinance or sell.