HomeFunds Review: California-Only HEA With Low Transparency

2.6 _/5

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Home Equity Agreement

Minimum credit score of 530
No minimum income
No monthly payments
Get funds in as little as 2 weeks

Only available in California
Website lacks transparency
Servicing fee of 3% – 5%

HomeFunds offers a home equity agreement (HEA) with easy approval requirements, including a low minimum credit score of 530 and no minimum income.

However, with availability limited to California, a low funding maximum of $300,000, and a lack of transparency—particularly around repayment terms—HomeFunds may fall short for homeowners looking for a higher cash investment or more accessible information. Our editorial rating reflects these limitations.

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What does HomeFunds offer?
How does HomeFunds determine the HEA amount?
More about HomeFunds

What does HomeFunds offer?

HomeFunds provides equity agreements for homeowners, allowing them to get a lump-sum payment in exchange for a portion of their home’s future appreciation. Homeowners can use this cash for any purpose, with no monthly payments or interest. Instead, at the end of the agreement term, the homeowner buys back the investor’s equity share at its then-current market value.

Many homeowners turn to equity sharing for major expenses, such as home improvements or unexpected bills, particularly if they have low credit scores. Unlike home equity loans or lines of credit (HELOCs), equity sharing often has more lenient credit requirements.

How does HomeFunds determine how much to invest?

HomeFunds offers investments ranging from $40,000 to $300,000, depending on factors such as your home’s value, mortgage balance, and location. HomeFunds doesn’t disclose its specific criteria, but similar companies also consider the property’s use (e.g., primary residence or rental) and, in some cases, the homeowner’s creditworthiness.

How does the agreement work?

HomeFunds’ agreements have a 10-year term, meaning you must buy back its equity share by the end of that period. You can do this by:

Selling your home
Paying with cash or savings
Refinancing your mortgage
Taking out a new loan, such as a home equity loan or HELOC

You can settle with HomeFunds earlier than the 10-year term. You’ll need an appraisal unless you’re selling the property.

What are the costs of a HomeFunds investment?

HomeFunds charges several fees for its equity agreements. A one-time servicing fee of 3% to 5% of the investment amount applies. You’ll also incur third-party fees for appraisals (around $450), title insurance (approximately $380), title/escrow services ($495), and other closing costs. Some of these expenses can be deducted from your lump-sum payment to reduce upfront costs.

Beyond these initial fees, you may also pay HomeFunds a share of your home’s future appreciation if its value increases over the term. This means you could end up repaying much more than the original investment amount if your home’s market value rises substantially.

Pros and cons of a HomeFunds HEA

Pros

No monthly payments
No interest costs
Get up to $300,000
Use the funds for any purpose
Minimum credit score of 530
Rental and investment properties are eligible
Can buy out the company’s share at any time
Funding is available within 2 weeks

Cons

Only available in California
You lose out on a share of your home’s appreciation, which could be significant
Few ratings and reviews are available

Is HomeFunds legit? Customer ratings

HomeFunds has little presence on review and rating sites including the Better Business Bureau, Trustpilot, and Google.

This could be due to its limited availability, but the only two reviews on Google were concerning:

Online performance is horrendous. Same automated response and no one ever calls. We select a date for an appointed date and time to speak with a representative, and no one from HomeFunds attends.
No one answers phone calls; they are always directed to voicemail.
The only form of “contact” from them is the exact same email that asks if I am available for a phone call to schedule a date for an appointment.
1-star Google review, 2023

2 appointments. Zero calls. This is not a viable business, and I wouldn’t trust them in any way, shape, or form.
1-star Google review, 2023

We recommend exploring higher-rated competitors due to these concerns.

Alternatives to HomeFunds

The following companies are more transparent and may offer more generous terms.

Hometap earns excellent customer reviews and features a wide funding range of $15,000 to $600,000 with lenient financial requirements.
Point is available in more states than our other top-rated picks, and it’s the only one that made our list with a 30-year term.
Unlock stands out by letting you buy out its position with partial payments throughout the term.

Best overall

4.8

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Best for longer terms

4.6

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Best for partial payments

4.5

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Our three best home equity agreement companies are available in California—and many other states, as you can see below.

Check your state’s eligibility

State	Hometap	Unlock	Point
Alabama	❌	❌	❌
Alaska	❌	❌	❌
Arizona	✅	✅	✅
Arkansas	❌	❌	❌
California	✅	✅	✅
Colorado	❌	❌	✅
Connecticut	❌	❌	❌
Delaware	❌	❌	❌
Florida	✅	✅	✅
Georgia	❌	❌	❌
Hawaii	❌	❌	✅
Idaho	❌	❌	❌
Illinois	❌	❌	✅
Indiana	❌	❌	✅
Iowa	❌	❌	❌
Kansas	❌	❌	❌
Kentucky	❌	❌	❌
Louisiana	❌	❌	❌
Maine	❌	❌	❌
Maryland	❌	❌	✅
Massachusetts	❌	❌	✅
Michigan	✅	✅	✅
Minnesota	✅	❌	✅
Mississippi	❌	❌	❌
Missouri	❌	❌	✅
Montana	❌	❌	❌
Nebraska	❌	❌	❌
Nevada	✅	❌	❌
New Hampshire	❌	❌	❌
New Jersey	✅	✅	✅
New Mexico	❌	❌	❌
New York	✅	❌	✅
North Carolina	❌	✅	❌
North Dakota	❌	❌	❌
Ohio	✅	❌	✅
Oklahoma	❌	❌	❌
Oregon	✅	✅	✅
Pennsylvania	✅	✅	✅
Rhode Island	❌	❌	❌
South Carolina	✅	✅	✅
South Dakota	❌	❌	❌
Tennessee	❌	✅	✅
Texas	❌	❌	❌
Utah	✅	✅	✅
Vermont	❌	❌	❌
Virginia	✅	✅	✅
Washington	✅	✅	✅
West Virginia	❌	❌	❌
Wisconsin	❌	❌	❌
Wyoming	❌	❌	❌
Washington, D.C.	❌	❌	✅

HomeFunds eligibility requirements

With HomeFunds, you need just a 530 credit score to qualify, and no minimum income is required. But you also need at least a 35% equity stake in your home, which is more than most home equity loan and HELOC lenders require.

Minimum credit score	530
Income requirement	None
Monthly payments	No
Interest	No
Equity requirement	35%
Term	10 years

How do I apply with HomeFunds?

Applying for an investment with HomeFunds starts online, and according to the company, the entire process (including funding) is often complete within just two weeks.

Here’s what the process looks like:

Get an estimate: Click the “Get an Estimate” button on the homepage, and fill out the short form. If your home is eligible, you can get preapproved right away. You’ll also find out how much funding you could qualify for. Preapproval does not require a credit check and will not affect your credit score.
Fill out a full application: Fill out the company’s full application, and submit several documents related to your property and finances. You will also speak with a HomeFunds representative at this stage, who will answer any questions and guide you on your way.
Get your home appraised: Scheduling a home appraisal is next, which you’ll do through a third-party appraisal provider. Once the appraisal is complete, HomeFunds will use the appraised value to finalize your investment offer.
Sign your closing documents: Once you have a finalized offer, you can sign the paperwork and close on your home equity agreement with HomeFunds.
Get funds: HomeFunds will wire you your payment, minus a 3% to 5% transaction fee, an escrow fee, and other applicable charges. You can then use the funds for any purpose you wish.

How we rated HomeFunds

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity agreements. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared HomeFunds to several home equity agreement companies, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.

Product	Rating
HomeFunds home equity agreement	2.6/5