Best Home Equity Investments of August 2026

What Is a Home Equity Investment?

A home equity investment (HEI) — sometimes called a home equity agreement or shared-equity agreement — lets you turn part of your home’s value into cash today without taking on debt. Instead of borrowing, you receive a lump sum in exchange for a share of your home’s future value. There are no monthly payments and no interest. You repay the company in a single settlement, typically when you sell, refinance, or buy out the agreement within a set term. The guide below explains how HEIs work, who they fit, and how to compare offers. Always confirm the share percentage, starting valuation, fees, and term — plus the provider’s latest terms — before you sign.

How Home Equity Investments Work

A company estimates your home’s current value (often applying a discount called a risk adjustment) and gives you cash for a share of its future value. Most agreements move through three stages:

• Funding: You receive a lump sum — often up to about $500,000 and typically up to 30% of your home’s value — after an appraisal and approval.
• The Term: You keep living in your home with no monthly payments. Terms commonly run 10 to 30 years.
• Settlement: At or before the end of the term, you buy out the investment by selling, refinancing, or paying with savings — repaying the original amount plus or minus the company’s agreed share of how your home’s value changed.

Because the cost is tied to your home’s value rather than an interest rate, an HEI can be cheaper than a loan if your home’s value stays flat or falls — and more expensive if it rises sharply.

HEI vs. Other Ways to Tap Home Equity

If you’d rather borrow and keep all of your home’s future appreciation, compare options on our HELOC page — a revolving line of credit can be the better fit when you want flexible access to cash and can handle monthly payments.

Key Features to Compare

• Share Percentage & Valuation: The share of your home’s future value the company takes, and the starting value it uses (many apply a 15–25% risk-adjustment discount).
• Term & Settlement Options: The length of the agreement and how you can exit — sale, refinance, cash buyout, or partial buybacks along the way.
• Cost Cap: Whether the provider caps its effective annual return, which limits your cost if your home appreciates quickly.
• Downside Protection: Whether the company shares losses if your home declines in value, or only participates in gains.
• Fees: Origination (often 3–5%), appraisal, and any closing or servicing costs deducted from your lump sum.
• Eligibility: Minimum credit score and equity, eligible states, and whether the property must be owner-occupied.

Five-Step Selection Framework

1. Confirm Eligibility: Check that the company operates in your state and that your credit, equity, and property type qualify.
2. Model the Settlement: Estimate what you’ll owe if your home rises, stays flat, or falls — the cost can swing widely.
3. Compare the Share & Cap: Weigh each company’s share percentage, starting valuation, and any effective-cost cap side by side.
4. Add Up the Fees: Include origination, appraisal, and closing costs to see your true net proceeds.
5. Plan Your Exit: Decide in advance how you’ll buy out the agreement — savings, refinance, or sale — before the term ends.

Smart Usage Tips

• Run the appreciation math: In a fast-rising market an HEI can cost more than a HELOC or home equity loan, so model several scenarios first.
• Mind the term: Have a concrete exit plan; settlement is a lump sum, not a gradual payoff.
• Check the starting valuation: A larger risk-adjustment discount raises your effective cost, so compare it across providers.
• Look for a cost cap: A cap on the investor’s return protects you if your home’s value surges.
• Keep your home in good shape: Settlement is based on appraised value, so deferred maintenance can raise what you owe.

Best Home Equity Investment Companies and How to Choose

The best home equity investment company depends on your home’s value, your equity, and how long you want the agreement to run. Hometap, Point, and Unlock are among the most established providers, each with different term lengths, share structures, and buyout rules. Because pricing is driven by your home’s future value rather than a posted rate, the company that takes the smallest share isn’t always the cheapest once you factor in the starting valuation, the cost cap, and fees. Compare the full agreement — share percentage, term, downside protection, and total fees — and get estimates from more than one provider, since offers vary widely by home and location.