Cornerstone Financing provides homeowners with a way to access home equity for financial planning without debt or monthly payments. Their CHEIFS product converts home equity into tax-free cash for investments, insurance, or long-term care, offering a non-recourse alternative to traditional financing.
Funding
$285M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Homeowners often face challenges in accessing their home equity to fund financial planning needs without incurring debt or liquidating assets. Traditional methods can be restrictive, leading to missed opportunities for investment, insurance, or long-term care planning.
Solution
Cornerstone Financing offers CHEIFS (Cornerstone Home Equity Insurance/Investment Funding Solutions), a patent-pending product that provides homeowners with a structured method to convert a portion of their home equity into tax-free cash. This approach enables individuals to fund various financial objectives, such as annuities, life insurance, or long-term care, without taking on new debt or making monthly payments. By leveraging home equity as a strategic asset, homeowners can enhance their liquidity and pursue comprehensive financial planning while retaining ownership benefits and avoiding asset liquidation. The CHEIFS solution is distributed through a network of independent advisors, facilitating a streamlined process for clients.
Target Audience
The primary target audience includes homeowners seeking to leverage their home equity for financial planning and independent financial advisors, insurance professionals, and wealth managers looking for innovative tools to serve their clients.
Features
- CHEIFS (Cornerstone Home Equity Insurance/Investment Funding Solutions) is a home equity investment agreement, not a loan.
- Provides tax-free cash derived from home equity to fund financial planning needs like annuities, life insurance, and long-term care.
- Offers a non-recourse, minority fractional equity-based alternative to traditional financing.
- Eliminates monthly payments and interest accrual associated with traditional loans.
- Minimum investment amount of $70,000.
- Applicable to owner-occupied, 1-2 unit residential properties.
- Homeowners remain responsible for property taxes, insurance, and maintenance.
- Requires underwriting, property appraisal, and verification of credit history and property condition.
- Secured by a mortgage or trust deed in no lower than second lien priority.
- Origination fee of 1.5% of the investment payment, plus appraisal, title, and recording fees.
- Available in multiple states, with ongoing expansion efforts.