By Marc Fleury · Updated November 2026 · Facts checked against Point.com
What a home equity investment is
A home equity investment (HEI) lets you turn part of your home equity into cash without borrowing. A company pays you a lump sum today. In return, it gets a share of your home's value when you eventually sell, refinance or buy it out. You keep the title, you keep living there, and nothing is due each month.
You'll also see HEIs called shared equity agreements, home equity sharing agreements or shared appreciation agreements. The details differ by company, but the core trade is the same: cash now, a slice of your home's value later.
How a home equity investment works
- Get an estimate. You enter your address and a few details. Most providers show a ballpark offer without a hard credit check.
- Apply and verify. The company checks your credit, title and equity. There's usually no income documentation.
- Appraisal. An independent appraiser sets your home's value. Many providers then set a lower starting value (Point calls it a risk adjustment), and your future share is measured from there.
- Closing and funding. Fees come out of your proceeds and the company records a lien. At Point, closing can take as little as 3 weeks.
- Settlement. Years later, you repay the original amount plus or minus the company's share of how your home's value changed, usually in one payment.
What it costs: a worked example
Point publishes this example. "Tim" owns a $500,000 home and takes $50,000. Point sets his starting value at $365,000, below the appraisal. Five years later, he sells:
| Tim sells for | He repays Point | Cost above the $50,000 |
|---|---|---|
| $362,100 (value fell 28%) | $51,800 | $1,800 |
| $593,800 (average growth) | $110,500 | $60,500, limited by Point's cap |
| $653,500 (strong growth) | $125,700 | $75,700, limited by Point's cap |
Three lessons. A flat or falling market makes an HEI cheap. A strong market makes it expensive, which is why the cap (the most the company can collect, usually based on how long you hold) is one of the most important numbers in your offer. And the fees are separate: at Point, a processing fee of up to 3.9% (subject to a $2,000 minimum) plus third-party costs comes out of your cash at closing.
HEI vs HELOC vs home equity loan vs reverse mortgage
| Home equity investment | HELOC | Home equity loan | Reverse mortgage | |
|---|---|---|---|---|
| Monthly payment | None | Yes, often variable | Yes, fixed | None while you live there |
| Interest | None; you share home value instead | Yes | Yes | Yes, added to the balance |
| Typical credit floor | As low as 500 at some providers | Often 620 to 680 | Often 620 to 680 | Varies |
| Income check | Usually none | Yes | Yes | Financial assessment |
| Age requirement | None | None | None | Generally 62+ |
| Costs most when | Your home appreciates a lot | Rates rise or you carry a balance | You need flexibility | You live there a long time |
For a deeper comparison of the three options most homeowners weigh, see home equity loan vs HELOC vs HEI.
Who a home equity investment fits, and who should skip it
Good fit
- You have a lot of equity but a monthly budget that can't take a new payment
- Your credit or income documentation rules out a bank HELOC
- You're self-employed, retired or between jobs
- You need a large one-time sum, like clearing high-interest debt or a major repair
- You have a realistic exit plan: a sale, refinance or savings within the term
Skip it if
- You qualify for a home equity loan or HELOC and can carry the payment
- You live in a fast-appreciating market and plan to stay a long time
- You'll move within a couple of years, so the upfront fees dominate
- You need less than about $30,000. Price a personal loan first
- Your home is manufactured, mobile, a co-op or on a large acreage; most providers exclude these
What to compare between HEI companies
- Amount and equity left over: the range they fund and how much equity you must keep.
- Starting value: how far below the appraisal they set it. A bigger cut means you share more growth.
- The cap: the most they can collect, and how it changes by year.
- Share of value vs share of appreciation: a lower percentage isn't automatically cheaper.
- Fees: processing fee, third-party closing costs and anything due at payoff.
- Term and buyback rules: how long you have, and whether early buyback carries a penalty.
- Losses: whether they share in a decline, and how much.
- Availability: HEIs are only offered in certain states and counties.
We score the main options on the same criteria on our home equity scoreboard, and compare providers in detail in home equity investment companies compared.
Where to get an estimate
Point is our partner and ranks first on our home equity scoreboard; its score was set before the partnership. Read the full Point review for the trade-offs.
Point's Home Equity Investment isn't a loan. There are no monthly payments and no interest; Point shares in your home's future appreciation instead. Terms up to 30 years, and credit scores from 500 can qualify. See your estimate without affecting your credit.
Get My Estimate at Point →Paid partner link · WiseIQ earns a commission if you're approved. Point charges a processing fee of up to 3.9% (subject to a $2,000 minimum). Point shares in your home's appreciation. Not available in all states.