Practical guide
Home equity investments: what homeowners give up
These products give an existing homeowner cash now in exchange for a share of the home’s future value. The eventual cost is not known when you sign.
Reviewed August 3, 2026 · Educational guidance, not legal or financial advice
What these are
Home equity investments or "equity-sharing agreements" hand a homeowner a lump sum today in exchange for a slice of what their home is worth later. You will see them advertised heavily, and the marketing can blur the line between buying and borrowing.
Here is the clean line: these products are for people who already own a home and want cash out of it. They are not a mortgage or down-payment-assistance program, and they do not help a renter purchase a first home.
Why HomeBase labels them separately
HomeBase includes this shape only in the homeowner comparison and labels it as a commercial product. The company’s return comes from your home’s future value, so the final cost depends on the contract and what the home is worth later.
Compare the settlement formula, end date, fees, and starting valuation against ordinary home-equity borrowing. Have an attorney review the agreement before you sign.
Sources
- Mortgage financing options in a higher interest rate environment — Consumer Financial Protection Bureau