Money Fox Home Equity Investment (HEI): How It Works
Get cash today in exchange for a share of your home's future value. No monthly payments.
- How you get paid
- A lump sum
- Monthly payments
- None
- How you settle
- Usually by paying the provider a share of your home's value when you sell or refinance, or at the end of the term
- Term
- Set by the provider, often a decade or longer
- Secured by
- Your home
- Best for
- Homeowners who want cash without adding a monthly payment
A home equity investment (HEI), sometimes called a home equity agreement (HEA) or home equity sharing agreement, gives you a lump sum of cash today. In exchange, the provider receives a share of your home’s future value. There are no monthly payments.
How it works
You apply with a provider, who looks at your home, its value and your equity. If you’re approved, you receive cash. When the agreement ends, usually when you sell, refinance, or reach the end of the term set by the provider, you settle by paying the provider an amount based on your home’s value at that time.
Because it isn’t a traditional loan, providers often have different requirements. Some are more flexible on credit scores, for example, but most require meaningful equity in the home.
A worked example
Contracts differ a lot, so this is only an illustration with made-up numbers. Say your home is worth $500,000, and you receive $50,000 in exchange for a share equal to 20% of the home’s value when you settle.
| Home value when you settle | Provider’s 20% share | Compared with the $50,000 you received |
|---|---|---|
| $400,000 | $80,000 | $30,000 more |
| $500,000 | $100,000 | $50,000 more |
| $700,000 | $140,000 | $90,000 more |
In this example the settlement is larger than the cash you received even if your home doesn’t gain value, and it grows as the home gains value. Some agreements use different formulas or cap the amount owed. That’s why it’s worth asking each provider to show you the settlement at several home values before you sign.
Who it tends to suit
- Homeowners who don’t want or can’t carry another monthly payment.
- People whose credit or income makes a traditional loan harder to get.
- Homeowners who plan to sell or refinance within the provider’s term.
Things to weigh
- The cost depends on your home’s future value, so it can be higher than the cost of a loan if your home appreciates a lot.
- You’ll owe a settlement later, which may be large. Make sure you understand when and how it’s due, and how you’d pay it if you didn’t sell.
- Fees can apply at the start. Ask for a full breakdown.
- Availability varies by state and by provider.
- The rules are changing. Regulators and consumer groups have looked closely at these products, and some states have passed laws specific to them. Ask what protections apply where you live.
Compare before you choose
Providers differ on how much they’ll fund, credit requirements and the length of the term. Answer a few questions to see which providers fit you, or browse the comparison directory. If you’d rather borrow, see how a home equity loan or HELOC compares.
This article is for general information and isn’t financial, tax or legal advice. Example numbers are illustrations, not offers.
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Frequently asked questions
Is a home equity investment a loan?
Providers generally describe it as an agreement rather than a loan: you get cash now and the provider shares in your home's future value. Consumer advocates and some regulators see it differently, and how it's treated varies by state. Terms differ by provider, so read the agreement carefully.
How do I pay it back?
Typically when you sell the home, refinance, or reach the end of the term, though many providers let you settle earlier. The amount owed depends on your home's value at that time.
Can it cost more than a loan?
It can. Because the provider shares in your home's future value, a home that gains a lot of value can mean a larger settlement. Ask each provider for examples at different home values.
Is a home equity investment regulated?
The rules are changing and differ by state. Several states have passed or adopted rules aimed specifically at these products, and the CFPB has published a report and consumer advisory on them. Ask the provider how the product is treated under your state's law, and consider independent advice before you sign.
Published November 9, 2026. This article is for general information and isn't financial, legal or tax advice. Terms vary by lender and state. We may be compensated by companies featured on this site. See our advertiser disclosure.