Home equity

Home equity investments, explained honestly

The short answer

It hands you a lump sum now, with no monthly payment and no interest.

In exchange, the company takes a share of what your home is worth later.
The pitch leans on "no payment." That is not the same as "no cost."
You settle in 10 to 30 years, by selling the home or buying the company out.
The catch: in a rising market that share can cost more than a loan at three times the rate, and the full settlement comes due at the end.

Written by Dana Acosta

Consumer-credit writer · 9 yrs

✓ Reviewed by M. Reyes, AFC®

Last reviewed Jun 2026

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How a home equity investment works

The company gives you cash today. In return, it buys a slice of your home's future value. There is no monthly bill in between, and no interest builds up.

You settle the deal in 10 to 30 years. You either sell the home or buy the company out. At that point, the company collects its share of what the home is worth. So you're not paying by the month. You're paying with part of your home's future gain.

Put a real number on the share

2–3×

What an HEI can cost vs. an ordinary loan

if your home climbs

10–30 yr

The term, then the full settlement is due

a balloon at the end

Monthly payment while the deal runs

no bill, not no cost

Illustrative example. Actual costs and results vary.

⚠ "No interest" is not "no cost"

You're selling a share of your home's future gains. Run the case where your home doubles. The no-interest deal can cost more than a mortgage at three times the rate.

And the full settlement comes due at the end. If you can't buy the company out, that can force a sale.

✓ It can make sense if

You're equity-rich but income-short.
You're locked out of a HELOC.
You've modeled the buyout in a rising market and can live with the number.

✕ Skip it if

You have any cheaper way to reach the cash.
You'd struggle to settle the balloon at the end.
You haven't run the numbers on a home that climbs.

Everything about home equity investments

Q1 How does it work? Q2 Who is it for? Q3 What does it really cost? Q4 HEI or HELOC? Q5 Which company is legit? Q6 Red flags to watch? Q7 No payment or credit check? Q8 How do I settle or sell?