What Is a Home Equity Agreement? Compare the Best HEA Lenders in 2026

A home equity agreement (HEA)—sometimes called a home equity investment (HEI) or home equity sharing agreement (HESA)—allows homeowners to access a portion of their equity in exchange for a share of their home’s future value.

It’s a way to tap your home’s value without taking on monthly payments, though it means sharing some of your home’s future gains. Below, we cover how HEAs work, how providers structure repayment, and the pros and cons to weigh before you sign. You’ll also see how a few of the best HEA lenders compare, so you can find the right fit for your situation.

What is a home equity agreement (HEA loan)?

Home equity agreements (HEAs) go by several names—home equity investments (HEIs), home equity contracts, or home equity sharing agreements (HESAs). They all describe a financial arrangement where you get a lump sum of cash now, then repay it later by giving the company a share of your home’s value when you sell, refinance, or buy out the agreement.

The biggest benefit of an HEA is that you don’t have ongoing payment obligations, unlike traditional home equity loans (HELOANs) or home equity lines of credit (HELOCs). HEAs are typically more accessible to lower credit scores than HELOCs or home equity loans. However, your total repayment on an HEA can be substantial if your home’s value rises.

Who qualifies for a HEI loan?

Qualifying for an HEI/HEA/HESA comes down to your equity, credit, and property. Because the company invests in your home instead of lending against your income, the bar is usually lower than traditional home equity financing.

Here’s what most providers consider:

• Credit score: Many HEA companies accept scores in the 500s, while home equity loans and HELOCs usually want 620 or higher.
• Equity and CLTV: Most providers want you to keep a combined loan-to-value (CLTV) ratio at or below 75% to 85%. The more equity you hold, the more cash you can access.
• Property: Your home usually needs to be your primary residence, in good condition, and located in a state where the provider operates.

Income matters far less here than with a loan, since most HEA companies skip the debt-to-income ratio (DTI) check entirely.

Reviews of the best home equity agreement companies

If an HEA loan sounds like it could fit your situation, the next step is choosing the right provider. Not all providers structure their terms the same way.

We believe the best home equity investment companies offer competitive structures, transparent agreements, strong financial backing, and a consistent customer experience. Here’s why we selected the companies below.

• Best overall: Hometap
• Best for partial payments: Unlock
• Best for longer terms: Point

Best HEA for partial payments: Unlock

Best for Partial Payments

4.7 _/5

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Why an Unlock HEA is one of the best

Unlock stands out for its partial buyout option, which allows homeowners to gradually repurchase their equity instead of waiting until the end of the agreement to settle in one lump sum payment.

Unlock offers home equity agreements with funding of up to $500,000 and a standard 10-year term. Like other home equity investment companies, it provides cash upfront in exchange for a share of your home’s value when the agreement ends.

Unlock calculates its share using an exchange-rate model. Your investment amount is first expressed as a percentage of your home’s starting value, which is then multiplied by an exchange rate (often around 2.0) to determine Unlock’s share of the final home value.

The company also caps annualized costs at 19.9%, which helps limit how quickly repayment can grow if your home appreciates significantly.

• Partial buyout payments allowed: Repurchase portions of Unlock’s equity stake during the 10-year term instead of settling everything at once.
• Lower credit score requirement: Minimum credit score of 500 makes it accessible for homeowners who may not qualify for traditional home equity loans.
• Improvement adjustment: Approved renovations can be excluded from the final value calculation, so you’re not sharing the appreciation created by your own upgrades.
• Annualized cost cap: Limits yearly growth of Unlock’s return to 19.9%, helping control extreme repayment scenarios.

• Funding up to $500,000: Comparable investment limits to other major HEA providers.
• Higher origination fee: Processing fee of 4.9% plus closing costs deducted from the investment amount.
• Single-term option: Only a 10-year agreement is available.
• Limited availability: Currently offered in 13 states: Arizona, California, Florida, Michigan, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington.

Funding	$15,000 – $500,000
Term length	10 years
Credit score	500+
Prequalify	Get an estimate in just 60 seconds

What to keep in mind

Unlock looks for a minimum FICO credit score of 500. Income verification may be required if your score is below 550. Its investments are available for most residential real estate (single-family, condominiums, two- to four-unit properties, and townhomes), including owner- and non-owner properties.

You won’t be eligible if you have a bankruptcy, foreclosure action, short sale, or deed in lieu within the previous five years or have any 90-day mortgage delinquencies within the prior 24 months.

You’ll need to maintain hazard insurance equal to the replacement cost of your home during the 10-year term. Unlock must be named on all property insurance policies as a “mortgagee” or “additional interest.” If approved, you will receive funding within 30 to 60 days.

Application process

You can get an initial cash estimate in just 60 seconds by completing an online form. If you like the terms outlined, complete an application and schedule a call with a representative who will walk you through your Investment Estimate.

If you accept the terms, an appraisal will be done to determine the value of your home for the Investment Closing Statement. Once the final documents are signed, the funds will be wired to your account.

Best HEA for longer terms: Point

Best for Longer Terms

4.6 _/5

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Why a Point HEI is one of the best

Point stands out for offering the longest repayment timeline among home equity agreement companies, with terms that can extend up to 30 years.

Point offers investments ranging from $30,000 to $600,000 and calculates repayment using a share-of-value model tied to your home’s value at settlement. Homeowners can also buy back the investment at any time without a penalty, which adds flexibility if their financial situation changes.

Because Point agreements can last up to 30 years, borrowers have far more time to sell, refinance, or repurchase the investment than with most competitors, which typically require settlement within 10 years.

• Longest repayment window: Agreements can last up to 30 years, far longer than most HEA providers.
• Anytime buyback option: Repurchase Point’s investment whenever you choose without an early repayment penalty.
• Large funding potential: Investments range from $30,000 to $600,000, depending on your available equity.
• No income requirement: Approval focuses primarily on home equity rather than income verification.
• Lower processing fee: Processing fee up to 3.9% plus standard closing costs.

• Higher minimum investment amount: Funding starts at $30,000, which may be higher than some competitors.
• Longer exposure to home appreciation: A 30-year term can significantly increase the total repayment if your home’s value rises.
• Limited availability: Currently offered in 27 states and Washington, D.C. (Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, Missouri, New Jersey, Nevada, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington)

Funding	$30,000 – $500,000
Term length	30 years
Credit score	500+
Prequalify	Get an estimate in just 60 seconds

What to keep in mind

Point looks for a minimum FICO credit score of 500. Your home must be worth more than $155,000, and you must retain at least 30% of the equity after the investment.

Investments are not offered on commercial properties, manufactured homes, modular homes, mobile homes, properties with five or more acres, properties with LLC ownership, or co-ops. Its investment must be in at least the second lien position.

Application process

You can apply in five steps. First, you’ll fill out a prequalification form to get a cash estimate. If you’re eligible, Point will have you schedule time to speak with a member of its team who can answer any questions.

Once all your questions are answered, you’ll fill out an online application for Point to review. After Point reviews the application, a third-party appraiser is selected to determine the value of your home for the final offer.

If you agree to the terms in the final offer, you will sign the closing documents. Once you have done so, your funds will be transferred to your bank account.

Best lender for an HEA overall: Hometap

Best Overall

4.8 _/5

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Why a Hometap HEI is one of the best

Hometap stands out for its high funding limit of up to $600,000, structured 10-year term, and built-in protections like the Hometap Cap and renovation adjustment.

Hometap offers one of the largest funding ranges among home equity investment companies, with amounts from $15,000 to $600,000. Its investments run for 10 years and are structured around a share-of-value model, meaning repayment is based on a percentage of your home’s value when you settle the agreement.

The company typically receives between 15% and 30% of your home’s value, depending on how much equity you access and when the agreement is terminated. Hometap also includes a built-in “Hometap Cap,” which limits its annualized return to 20%. This cap can help protect homeowners if their property appreciates dramatically during the term.

Hometap is currently available in only 16 states, and repayment is generally made in a lump sum when the agreement ends or the home is sold.

• High funding ceiling: $15,000 to $600,000
• Structured 10-year term: Clear timeline compared with longer HEA agreements
• Hometap Cap: Limits annualized return to 20%
• Renovation adjustment: Large renovations of $25,000+ may be excluded from value calculations
• Virtual appraisal option: Some homes qualify for a faster remote appraisal
• Strong customer reviews: 4.9/5 on Trustpilot

• Upfront fees deducted from funding: Includes a 4.5% processing fee plus closing costs
• Share percentage increases over time: The portion owed can rise the longer you hold the agreement
• Limited availability: Currently offered in 16 states (Arizona, California, Florida, Michigan, Minnesota, New Jersey, New York, Nevada, South Carolina, Ohio, Oregon, Pennsylvania, Virginia, Utah, and Washington)

Funding	$15,000 – $600,000
Term length	10 years
Credit score	600
Prequalify	Get an estimate in just 60 seconds

What to keep in mind

Hometap accepts homeowners with a minimum credit score of 600. No income requirements or debt-to-income restrictions apply, and you can get an estimate without a hard credit check.

Stipulations may apply if you live in a flood zone. Hometap offers equity-sharing agreements to homeowners who live in floodplains, but only if they have appropriate flood insurance. Manufactured homes in flood zones are ineligible for a Hometap investments. 

Application process

You could receive funds in just four steps:

1. Fill out a quick online form that will prequalify you and provide an estimate of how much money you’re eligible for.
2. A dedicated Investment Manager is assigned to your account to answer any questions you may have. 
3. If you agree to the terms in the estimate, a home appraisal is scheduled to determine the final terms of the agreement. 
4. You’ll sign the final offer and get your funds within a few days of closing.

JG Wentworth

4.3 _/5

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Why JG Wentworth is one of our top options

You might recognize JG Wentworth from its debt relief services. But today, the company also operates in the home equity space.

Its main offering is a Home Equity Cashout, which you can get an estimate for in under 2 minutes. Their Home Equity Cashout is an equity-sharing agreement that lets you access equity from your home without refinancing or taking on monthly payments. Instead of lending you money like a HELOC or home equity loan, JG Wentworth gives you a lump sum upfront in exchange for a share of your home’s future value.

• No income requirement
• Can get a free estimate online in just a few minutes
• Receive payments in as little as five days after closing
• Keeps your existing mortgage
• No prepayment penalties, make partial payments at any time

• No mobile app
• Investment properties are not eligible
• Higher minimum funding and minimum credit score requirements than many competitors

Funding amount	$15,000 – $500,000
Repayment terms	10 years
State availability	AZ, CA, CO, DC, FL, GA, IL, IN, MI, MO, NV, NJ, OH, PA, SC, TN, UT, and WA
Prequalify	Get an estimate in just 60 seconds

What to keep in mind

• You must be current on all mortgage payments and property taxes to qualify
• You will not qualify if you already have a reverse mortgage or another shared equity agreement on your property (although having an existing HELOC or home equity loan is okay)
• Second homes qualify for a Cashout, but not investment properties
• You may need an appraisal to estimate your home’s current value
• You cannot take out any new loans on your property while the Cashout is in effect
• Prepayment is allowed, and you can make partial payments at any time during your term

Application process

1. Prequalify online. Enter your home address and basic contact information to see if your property is in an eligible market. This takes just a few minutes and doesn’t require a hard credit pull.
2. Speak with a specialist. If you appear eligible, a JG Wentworth representative will call to review your situation, explain how the Cashout works, and provide an estimate of how much you may be able to receive.
3. Submit documentation. You’ll provide details about your mortgage, home value, and financial background. An appraisal may be ordered to confirm your property’s value.
4. Review and sign the final terms. If approved, you’ll receive a formal agreement outlining your lump-sum amount and the share of future home value JG Wentworth will receive.
5. Receive your funds. After closing, your cash is delivered as a lump sum. You can use this lump sum to fund projects, pay off debt, live off of — anything!

How a home equity agreement works

A typical home equity agreement follows a step-by-step process:

1. Apply and receive an offer: You submit basic information about your home, mortgage balance, income, and credit profile. The company evaluates your available equity and may require an appraisal or home valuation before presenting an offer.
2. Review and sign the agreement: If you accept the terms, you sign a contract outlining the company’s percentage stake, the term length, and how repayment will be calculated. The company records its interest against your property, similar to a lien.
3. Receive your funds: After closing, you receive a lump sum based on the agreed-upon terms, typically delivered via wire transfer or direct deposit to your bank account.
4. Settle the agreement later: Repayment typically happens when you sell, refinance, reach the end of the term, or choose to buy out the agreement. The amount you owe depends on your home’s value at that time and how your agreement is structured. Here are some examples to illustrate.

Most agreements run 10 to 30 years, and you can buy out the company early without a prepayment penalty if your situation changes.

How do you pay back a home equity agreement?

You repay an HEA when you sell, refinance, reach the end of the term, or buy out the agreement early. The amount comes down to your home’s value when you settle and how your provider runs the math. 

The two examples below show the most common approaches.

Example 1: Percentage of final home value

Some home equity agreement companies calculate repayment based on a percentage of your home’s value when you settle.

• Say your home is worth $500,000 and you receive $50,000 for a 10% equity stake.
• If you later sell for $600,000, you repay 10% of the sale price, or $60,000.
• If your home sells for $450,000 instead, 10% comes to $45,000. The repayment moves with your home’s value.

Example 2: Original investment plus a share of appreciation

Other companies structure repayment differently.

• Say you take the same $50,000 on a $500,000 home, with your agreement requiring the original $50,000 back plus 20% of any appreciation.
• If you later sell for $600,000, you repay $70,000 (your original $50,000 plus 20% of the $100,000 in appreciation).
• If you sell for less, some agreements reduce the repayment accordingly.

Can you pay off an HEI early?

Yes, most providers let you buy out the agreement before the term ends, usually with no prepayment penalty. Your payoff is based on your home’s value when you exit, not what you first received, so a rising market means a bigger buyout.

You can fund an early buyout by:

• Using cash or savings
• Doing a cash-out refinance
• Taking out a home equity loan or HELOC
• Selling your home

The smart move is to get a current appraisal first, so you know what you’ll owe before you commit.

How much can you get from an HEA loan?

Home equity agreement providers determine your offer based on your property details, available equity, and financial profile. While some programs advertise funding up to $600,000, the actual amount varies from one homeowner to another.

Typical funding ranges

Most homeowners qualify for $30,000 to $300,000 through a home equity agreement, depending on property value, state availability, and the provider’s internal limits. High-value homes or low existing mortgage balances may unlock higher offers.

What influences your offer

Providers consider several factors when determining how much funding you may qualify for through a home equity sharing agreement:

• Home value: Higher-value homes may qualify for larger funding amounts.
• Remaining mortgage balance: Homeowners with smaller mortgage balances often have more accessible equity.
• Available equity: The more equity you have in your home, the larger your potential offer may be.
• Provider funding limits: Each company sets its own maximum funding amounts and investment thresholds.

How much does a home equity agreement cost?

You’ll pay some upfront costs when entering a home equity agreement. These may include:

Closing and origination fees	Around 3% to 5% of the investment amount
Appraisal fees	$300 – $1,000, depending on your property and state
Title and settlement costs	$800 – $1,200 typical
Filing and recording fees	$300 – $1,000, depending on county regulations

Each company sets its own maximum loan-to-value ratio and may adjust your home’s appraised value to reduce risk.

Home equity agreement pros and cons

An HEA gives you cash without a monthly bill, but you trade away a share of your home’s future value to get it. Weigh these benefits and drawbacks before you decide.

Which is better: A HELOC, home equity loan, or home equity agreement?

A home equity sharing agreement is the better fit when monthly payments would strain your budget, or when low credit or income keeps you from qualifying for a loan. A HELOC or home equity loan is usually cheaper over time, as long as you have the credit and income to qualify and can manage a monthly payment.

It comes down to your cash flow and your comfort with risk. To find your fit, weigh how each option handles three things: the monthly payment, the total cost to repay, and what it takes to qualify.

Here’s how the options stack up side by side.

Feature	HEA (home equity agreement)	Home equity loan	HELOC
Monthly payment	None	Fixed monthly payments	Variable (often interest-only payments during draw period)
Cost structure	Zero monthly payments; the provider receives a share of your home’s future value	Fixed interest rate on a borrowed amount	Often variable interest rate (usually tied to prime rate), sometimes fixed
Repayment timing	When you sell, refinance, or end of the term	Fixed repayment term (typically 5–30 years)	Draw period + repayment period
Repayment amount	Percentage of the home’s future value	Loan amount + interest charges	Amount borrowed + interest
Cost predictability	Depends on home value changes	Highly predictable	Less predictable due to variable rates
Credit needed	500+ often accepted	700+ typically recommended	700+ typically recommended
Income needed	More flexible	Verified income required	Verified income required
Ownership	You keep the title; the provider records a lien/contract interest	You keep the title; the lender records a lien	You keep the title; the lender records a lien
Access to funds	Lump sum upfront	Lump sum upfront	Revolving credit line (often drawn as needed)
If home appreciates	You share a portion of the gains	You keep all the appreciation	You keep all the appreciation
If home value drops	You may share losses (depending on terms)	You still owe the full loan balance	You still owe the full loan balance
Best for	Cash without required monthly payments	Predictable payments and fixed costs	Ongoing access to funds and flexibility

When an HEA makes sense for you

A HELOC or home equity loan may be the better choice if you qualify for competitive rates and want to keep full ownership of your home’s future value. While they require monthly payments, they’re often more cost-effective over time—especially if your home appreciates.

A home equity agreement may make more sense if you can’t qualify for traditional financing or want to avoid monthly payments, even if it means giving up a portion of your home’s future value.

It may be a strong fit for:

• Retirees who need cash flow but can’t take on monthly debt
• Homeowners with limited income or credit who still have strong equity
• High-value market homeowners seeking liquidity without selling

However, this structure isn’t ideal for everyone. If you plan to sell your home soon or expect significant appreciation, a traditional loan may help you retain more equity.

Home equity sharing agreements are a good option if you’re worried about qualifying for a loan and don’t want to take on monthly payments. If you are financially able to take on debt and cover the monthly payments, a home equity loan or HELOC may be better because you’re not giving up a portion of the future appreciation in your home. Either option is a major financial decision, so I recommend consulting with a financial professional to understand how this affects your personal finances. 

How to choose from the best home equity sharing companies

Not all home equity agreement companies structure their contracts the same way. Even among the providers reviewed above, funding limits, repayment formulas, and buyout options vary.

Before committing, ask:

• How much funding can I realistically qualify for? Compare your available equity with each company’s funding limits and CLTV requirements.
• Does the term fit my timeline? Agreements often last 10 to 30 years. If you plan to sell or refinance sooner, make sure the structure aligns with your plans.
• How is repayment calculated? Some companies calculate repayment as a percentage of your home’s value at settlement, while others combine your initial investment with an appreciation share. Run the numbers in both strong and weak housing markets.
• Are early or partial buyouts allowed? Not all providers structure buyouts the same way. Flexibility here can matter if your financial situation changes.
• How long does funding take? Timelines typically range from a few weeks to a month, depending on underwriting and appraisal requirements.

Beyond contract terms, review customer feedback, BBB ratings, complaint history, and state availability. Even well-known home equity investment companies differ in how transparent and responsive they are throughout the process.

FAQ

How we selected the best HEI loan companies

Since 2020, LendEDU has evaluated home equity companies to guide readers toward the right HEA. Our latest analysis reviewed 208 data points across 11 companies, drawn from company websites, online applications, public disclosures, customer reviews, and direct talks with company representatives.

Our editorial team sorts these into weighted categories and scores each company by what matters most to readers. The resulting star ratings flag who stands out for different needs, and since no two companies can top the same category, each designation appears only once.

Our highest ratings go to companies that pair a strong homeowner experience with transparent financing, from online eligibility checks to clear costs and unique benefits that support you through the term.

Recap of the best HEA loan companies

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