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What is a home equity investment?
Short answer
A home equity investment (HEI), also called a home equity agreement or shared equity agreement, is a contract where a company pays you a lump sum today in exchange for a share of your home's future value. There are no monthly payments or interest; you settle when you sell, refinance or the term ends. A lien is recorded on the home until then.
How an HEI works
Valuation
The company values your home and offers cash, usually up to 15%–25% of its value.
Agreement
You agree to a share percentage of the future value (or of its change), a term and fees.
Term
You keep living in and owning the home; no monthly payments.
Settlement
You pay the agreed share of the home's value at sale, refinance or term end, often subject to a cap.
A simple example
A company pays $40,000 (10%) on a $400,000 home in exchange for 20% of its future value. If the home grows 3% a year, it's worth about $537,567 in 10 years, and the homeowner repays about $107,513.
HEI vs HELOC vs home equity loan
| Feature | Home equity investment | HELOC | Home equity loan |
|---|---|---|---|
| Monthly payments | None | Yes | Yes |
| Interest | None | Variable | Fixed |
| Credit needed | Often 500–620 | Often 620–680+ | Often 620+ |
| Cost | Share of future value | Interest on what you draw | Interest on the full amount |
| Term | 10–30 years | Draw + repayment period | Fixed term |
Pros and cons of HEIs
Pros
- No monthly payments
- Easier credit and income rules
- Shared downside if values fall
Cons
- Can cost more than a loan if values rise
- Upfront fees of about 3%–5%
- A lien and a settlement deadline
Companies that offer HEIs
Splitero, Point, Hometap, Unlock and Unison are among the best-known providers. Compare them in best home equity investment companies or see how Splitero's HEI works.
Comparing your options?
Before you give up a share of your home's future value, see what a personal loan could look like for a smaller amount.
Figures checked on November 6, 2026 against Splitero's published terms, its press releases and independent sources. Splitero can change terms at any time — confirm everything in your written offer before signing.
