Home equity investment: cash now, a share later
Not a loan. An investor gives you cash today in exchange for a share of your home's future value. No monthly payment — and a very different set of trade-offs.
What a home equity investment is
A home equity investment (sometimes called a home equity agreement or shared equity agreement) is a contract, not a loan. A company gives you a lump sum now. In return, when you sell the home or the term ends — typically 10 to 30 years — you pay back the original amount plus an agreed share of how much the home's value has changed.
Why people consider it
- No monthly payment and no interest rate.
- Qualification leans on the home's equity more than on credit or income.
- Your first mortgage stays exactly as it is.
The trade-off
If your home rises in value, the investor's share can cost more than a loan would have. If it falls, they share the loss. You are giving up a slice of future appreciation you cannot get back, and the agreement usually has to be settled by a fixed date, which can force a sale or a refinance.
| Home equity investment | Home equity loan | |
|---|---|---|
| Monthly payment | None | Fixed |
| What you owe later | Original amount + share of appreciation | Principal + interest |
| Qualifying on | Mostly equity | Equity, credit, income |
| Best when | Payments would be a strain | You can afford a payment and want a known cost |
Who offers it
Home equity investments are offered by specialist investment companies rather than by mortgage lenders. [Confirm whether EquityPaid's lender or a partner offers this product. If not, this page should say so plainly rather than imply an introduction is available.]
EquityPaid is not a party to any home equity agreement and does not give financial advice. Read any agreement in full and consider independent advice before signing.