What Is a Home Equity Agreement (HEA)?
A way to access your home’s value today — without monthly payments and without affecting your current mortgage rate.
If you own a home, you may be sitting on significant equity — the difference between what your home is worth and what you owe on it. But turning that equity into spendable cash has traditionally meant a home equity loan, a HELOC, or a cash-out refinance. All of those come with monthly payments.
A Home Equity Agreement (HEA) — also called a Home Equity Investment (HEI) — works differently. A company gives you a lump sum of cash today, and in exchange, they receive a share of your home’s future value. Each company has their own terms, between 10 to 30 years, to settle your agreement.
How it works, step by step
Step 1 — You apply. Share basic info about your home, mortgage, and credit.
Step 2 — Your home is valued. An appraisal or automated valuation determines your home’s current market value.
Step 3 — If you qualify, an offer is made. The company offers you a cash amount in exchange for a percentage of your home’s future equity.
Step 4 — You receive cash. Funds are deposited, typically within weeks.
Step 5 — Settlement. When you sell, refinance, or reach the end of the term, the company receives their agreed share of the home’s value.
Understanding the equity share
This is the core of the agreement. In exchange for cash today, you’re giving up a slice of your home’s future appreciation. If your home goes up in value significantly between the agreement date and the settlement date, the investment company benefits from that upside — alongside you.
The percentage shared, the cash you receive, and the term length all vary by provider. Most agreements run 10 to 30 years, and homeowners can settle early at any time by buying out the investor’s share at fair market value.
Who qualifies?
Qualification requirements differ across providers, but most look for significant existing home equity (often 20–25% or more), a primary or secondary residence, minimum credit score thresholds (typically 500–640+).
Approval is often more accessible to homeowners who may not qualify for traditional financing — including self-employed individuals, retirees, or those carrying higher existing debt.
Potential benefits
- No monthly payments
- Access large amounts of equity with no added monthly payments
- More flexible qualification requirements
- Doesn’t raise your existing mortgage rate
Important trade-offs
- You give up a share of future home appreciation
- Terms and fee structures vary widely across providers
- Not available in all states
- Not all homeowners will qualify
How it compares to other options
A HELOC or home equity loan gives you cash but requires monthly payments — and your rate is subject to market conditions. A cash-out refinance replaces your existing mortgage entirely, which can be costly if your current rate is low.
For homeowners who need liquidity, don’t want new monthly obligations, and are comfortable sharing future appreciation, an HEA/HEI can be a strong fit.
Providers in this space
Several established companies offer Home Equity Agreements/Investments in certain states, including Unlock, Hometap, Splitero, and Point,. Each has its own terms, equity share structure, and state availability. We recommend comparing multiple offers before making a decision — the equity percentage, effective cost, and buyout structure all vary and can meaningfully affect your outcome.
Unlock – Click here to learn more
Hometap – Click here to learn more
Splitero – Click here to learn more
Point – Click here to learn more
Disclosure: This article is for informational purposes only and does not constitute financial, legal, or tax advice. Home Equity Agreements are complex financial products. Terms, availability, and eligibility vary by provider and state. We may receive compensation if you apply through links on this site. Always review agreement terms carefully and consult qualified advisors before making financial decisions. This site does not endorse any specific provider.