Swiched provides homeowners with upfront capital by offering a portion of their home's future appreciation, eliminating the need for debt and monthly payments. This home equity agreement allows homeowners to access liquidity without interest accrual, with repayment tied to future events like sale or refinance.
Funding
Funding not disclosed
Founders
Product
Problem
Homeowners seeking liquidity often face the complexities and ongoing obligations of traditional home equity loans or lines of credit. These debt-based financing options typically require monthly interest payments and can impact credit utilization, even when funds are not actively being drawn.
Solution
Swiched offers homeowners immediate access to cash by providing a portion of their home's future appreciation in exchange for an upfront capital disbursement. This home equity agreement structure allows homeowners to unlock home equity without incurring debt or making monthly payments. The agreement is settled upon the sale, refinance, or at the end of a defined term, typically 10 years, aligning repayment with the homeowner's liquidity events.
Target Audience
The primary customers are homeowners looking to access their home equity for liquidity needs without taking on traditional debt obligations.
Features
- Home equity access through a capital-for-appreciation agreement, avoiding debt creation.
- No monthly payments or interest accrual required from the homeowner.
- Repayment is contingent on the sale, refinance, or expiration of the agreement term.
- Underwriting process includes a soft credit pull, not impacting credit scores during pre-qualification.
- Funds are disbursed directly to the homeowner upon agreement finalization.
- Agreement terms are structured for a maximum duration of 10 years.