Home Equity Investment (HEI)

Cash from your home — no monthly payments, no income docs

A home equity investment pays you a lump sum today in exchange for a share of your home's future value. No loan, no interest, no monthly payment — your equity does the talking.

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At a glance

Illustrative terms via AltFi's partner network*

Structure: Equity agreement — not a loan
Monthly payment: None
Cash amount: Typically up to ~$500,000
Term: 10–30 years
Settle by: Sale, refinance, or buyout — no prepay penalty
Income docs: None — no DTI requirement
Minimum FICO: From ~500
Equity needed: Typically 25%+
Cost: Share of future value + ~3–5% fee

See your rate

Monthly payments

No DTI

No income docs required

Up to ~$500K

Cash up front

10–30 yr

Settle any time, no penalty

How it works

A home equity investment (HEI) — sometimes called a home equity agreement or shared appreciation agreement — is not a loan. A provider pays you a lump sum of cash today in exchange for a share of your home's future value. There's no interest rate, no monthly payment, and nothing added to your debt load. You settle the agreement whenever you sell, refinance, or buy the provider out — any time within a typical 10–30 year window, with no prepayment penalty.

Because there's no monthly payment, there's no debt-to-income test. Approval turns on the equity in your home, not your tax returns — which makes an HEI one of the few ways self-employed owners with irregular or hard-to-document income can unlock six figures of capital. And the funds are unrestricted: use them for the business, an investment, or personal goals.

The trade-off is real and worth understanding: the provider's share of your home's future value is the cost of the capital, and in a strongly appreciating market that share can exceed what interest on a loan would have cost. If you qualify for a HELOC or a cash-out refinance and can carry the payment, compare all three before you commit — the comparison below is where to start.

Why business owners choose this

Stay debt-free

An HEI is not a loan and adds nothing to your monthly obligations. No interest accrues and there's no payment schedule — the provider is repaid from your home's value when you settle.

No DTI, no worries

Self-employed or irregular income? Qualification is based on your home's equity, not your monthly earnings — no W-2s, no tax-return underwriting, no debt-to-income test.

Flexible funds

Use the money however you need — working capital, paying off an expensive advance, an investment, or personal goals. Funds are unrestricted.

Credit-flexible

With no payment to underwrite, providers can work with credit profiles a HELOC would decline — often from a FICO of around 500.

Is this right for you?

This option tends to be a strong fit when you're:

Self-employed owners whose tax returns understate real income
Paying off a merchant cash advance without adding a monthly payment
Equity-rich homeowners who don't clear a lender's DTI test
Funding the business or an investment while keeping monthly cash flow untouched

How it compares

HEI vs. HELOC vs. cash-out refinance

Swipe to compare →

Feature	Home Equity Investment No payments	HELOC Revolving line	Cash-Out Refinance New first mortgage
Monthly payment	None	Interest on what you draw	Full principal + interest
Income / DTI check	✗ None	✓ Required	✓ Required
Cost basis	Share of future value	From 6.75% APR*	Mortgage rate on full balance
Credit needed	From ~500	From 600	Typically 620+
Keeps current mortgage	✓ Yes	✓ Yes	✗ Replaces it
Best when	Income is hard to document	You want flexible draws	You want one loan + lump sum

Illustrative comparison. HEI terms vary by provider and state; loan terms via licensed lending partners depend on credit, equity, and underwriting.

Not sure which fits? Review the HELOC program details or the cash-out refinance details , or talk to a specialist.

Common questions

What is a home equity investment (HEI)?

An HEI is an agreement — not a loan — in which a provider pays you a lump sum of cash today in exchange for a share of your home's future value. There are no monthly payments and no interest; you settle when you sell, refinance, or buy the provider out within the agreement term, typically 10–30 years.

Do I need to prove income to qualify?

No. There's no monthly payment, so there's no debt-to-income test. Qualification is based on your home's equity — typically 25% or more — plus a property and title review. That's why HEIs fit self-employed owners with irregular or hard-to-document income.

How do I pay it back?

You settle the agreement any time within the term by selling the home, refinancing, or buying out the provider's share with cash — with no prepayment penalty. The settlement amount is based on your home's value at that time.

What does an HEI cost?

Instead of interest, the provider takes an agreed share of your home's future value or appreciation, plus an upfront fee — typically 3–5% of the cash amount, plus appraisal costs. In a strongly appreciating market the total cost can exceed loan interest, which is why it pays to compare an HEI against a HELOC or cash-out refinance before committing.

What happens if my home loses value?

In most appreciation-share structures the provider shares the downside too — if your home is worth less at settlement, their return shrinks. Exact downside treatment varies by provider and contract; it's one of the key terms to review before signing.

Is an HEI regulated like a mortgage?

Increasingly, yes. Several states — including Connecticut, Illinois, Maryland, and Maine — now regulate home equity agreements as mortgage-type products, and providers record a lien against the property. Availability and consumer protections vary by state; your specialist will walk you through what applies where you live.

Will checking my options affect my credit?

No — seeing what you qualify for uses a soft credit inquiry, which doesn't affect your score.

See what your equity could do for your business.

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