What Is a Home Equity Sharing Agreement?

You have equity in your home and need cash. But a traditional home equity loan won’t work for you because you can’t afford more monthly payments, or your credit score won’t allow it. A home equity sharing agreement might be the solution you need. This unique financing option lets you unlock money from your home’s equity without the burden of monthly loan payments. By partnering with an investor or equity sharing company, you can get a lump-sum cash advance in exchange for a share of your home’s future appreciation. How Much Is Your Home Worth Now? Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator. In this guide, we’ll explain how a home equity sharing agreement works and how it can benefit you, and provide information to help you decide whether this option is right for you. We’ll also share tips and insights from a top home equity sharing expert. What is a home equity sharing agreement? “A home equity sharing agreement, also known as a home equity agreement (HEA), is a no-loan option for homeowners to access the equity they’ve built in their homes,” explains Michael Michele...