Home equity agreements (HEAs) allow homeowners to access their home's equity without incurring debt through loans. In this arrangement, a homeowner sells a percentage of their home’s future appreciation for upfront cash, avoiding monthly payments. Ideal for those who may not qualify for traditional loans, HEAs have their costs, typically 3%-5% of the payout upfront, and can be expensive if property values increase substantially. They suit homeowners needing immediate cash but differ from home equity loans, which offer more long-term ownership flexibility.
A HEA lets you access cash from your home's equity without debt or monthly payments, but you give up a share of future value.
Best for homeowners needing cash without a loan; or home equity loans offer more ownership and flexibility.
HEAs have upfront costs (3%-5% of the payout) and can be costly if your home appreciates.
You agree to sell a percentage of your home's future value to an investor in exchange for an upfront lump sum.
Collection
[
|
...
]