Home Equity Investment (HEI)

Access $50K–$500K from your home equity with zero monthly payments, no income documentation, and credit scores as low as 500. Your home. Your equity. No debt.

Monthly Payments

500

Min FICO Score

Income Docs Required

DTI Impact

Last updated: May 2026

Key Facts

A Home Equity Investment (HEI)gives you a lump sum of cash from your equity in exchange for a share of your home's future value at exit. It is not a loan— there are no monthly payments, no interest rate, and no impact on your debt-to-income ratio. Investment amounts range from $50,000 to $500,000. Terms run 10–30 years, with exit available at any time via sale, refinance, or cash buyout.

What Is a Home Equity Investment?

A Home Equity Investment is a way to turn your home equity into cash without taking on debt. Instead of a loan with monthly payments and interest, an HEI investor provides you a lump-sum payment today in exchange for a percentage share of your home's value when you eventually sell, refinance, or choose to buy out the agreement.

Think of it this way: you keep your home, you keep your title, and you keep living exactly as you do now. There are no monthly payments to make. When you're ready to exit — whether that's in two years or twenty — the investor receives their agreed-upon share, and you keep the rest.

For homeowners who have significant equity but are FICO-constrained, DTI-constrained, or unable to document income through traditional channels, an HEI can be the only product that works. It is especially powerful as a bridge strategy: take the cash, pay off high-interest debt, improve your credit profile, then transition into a conventional loan or HELOC at better terms.

How It Works

The investor provides cash today in exchange for a percentage share of your home's value at exit. Your repurchase amount is always the lesserof two methods — protecting you from ever overpaying.

Example: $1,000,000 Home — $100,000 HEI

Investment Thickness

10%

$100K / $1M

Equity Multiple

2.0x

Industry standard

Investor's Share

20%

10% × 2.0x

Safety Cap

1.499%/mo

~17.99% annualized

The one-sentence explanation:“You receive cash from your equity today. In return, the investor holds a percentage share of your home's value at exit — no payments, no interest, and you're always protected by a cap on what you'll ever owe.”

Short-Term

Bridge Route

Receive $50K–$500K with zero monthly payments and no DTI impact. Use the proceeds to pay down debt, clean up your credit profile, and transition into a conventional refinance, HELOC, or reverse mortgage — sometimes in as little as a few months.

$50K–$500K

Lump Sum

Monthly

Zero

DTI Impact

Longer-Term

Equity Share Route

At exit, the investor receives a capped percentage of the home's future value. Terms run 10 to 30 years. You retain title throughout and can exit at any time by selling, refinancing, or buying out the agreement with no penalty.

10–30 yrs

Term

Capped %

Of Future Value

Anytime

Exit

Key Benefits

No Monthly Payments

Unlike a HELOC, home equity loan, or cash-out refinance, an HEI requires zero monthly payments during the entire investment term. This means zero impact on your monthly cash flow and zero impact on your debt-to-income ratio.

No Income Requirements

Qualification is based entirely on home equity — not your employment or income. No W-2s, no tax returns, no bank statements. Self-employed, retired, between jobs — it does not matter.

Credit Scores as Low as 500

Traditional lenders require 620–680+ credit scores. HEI investors work with FICO scores as low as 500. If you have equity but damaged credit, this may be the only product that works.

Flexible Exit — No Penalties

Exit anytime via sale, refinance, or cash buyout. No prepayment penalties. Many homeowners use an HEI as a bridge to clean up their profile and transition to a conventional product.

Use Funds for Anything

No restrictions on how you use the capital. Debt consolidation, home improvements, business investment, medical bills, retirement — entirely your choice.

Built-In Safety Cap

Your repurchase amount is always the lesser of the equity share or a compounded cap rate. Even if your home appreciates significantly, the cap protects you from paying more than a predictable maximum.

HEI Guidelines & Terms

$50K–$500K

Investment Range

2.0x

Equity Multiple

17.99% / yr

Safety Cap

75%

Max OLTV

10–30 years

Term Options

25%

Max Investment Thickness

FICO-Based Qualification Tiers

FICO Score	Tier	Max OLTV	First Lien Max	Second Lien Max
500–539	Reduced	60%	$150,000	$50,000
540–579	Moderate	65%	Standard	Standard
580+	Full	75%	Standard	Standard

Eligible Properties

Owner-Occupied

Non-Owner-Occupied

1–4 Unit Multifamily

LLC-Held

Revocable Trust

Who Is This For?

HEIs are built for homeowners who have equity but face barriers to traditional lending. If any of these sound familiar, an HEI may be the right solution:

Low credit score — FICO below 620, turned down by traditional lenders
High DTI ratio — too much existing debt for conventional approval, need cash to consolidate
Self-employed or hard to document income — no W-2s, non-traditional income sources
Retired with limited income — equity-rich but cash-poor, not yet 62 for a reverse mortgage
Bridge to better terms — need cash now to clean up debts, then refinance into a HELOC or conventional loan later
No monthly payment tolerance — cannot take on any additional monthly obligations right now

HEI vs. Traditional Options

See how a Home Equity Investment compares to the products your other lenders are offering — or turning you down for.

Feature	HELOC	Reverse Mortgage	Bridge / Hard $	Home Equity Investment
Monthly Payments	Required	Accrues	High & recurring	✓ None. Ever.
Income Verification	Required	Limited	Required	✓ Not required
Min. Credit Score	620–680+	~620	660+	✓ 500 FICO
DTI Impact	Adds to DTI	Reduces equity	Adds to DTI	✓ No DTI impact
Rate / Cost Risk	Adjustable risk	Rising balance	Very high	✓ Fixed share, capped
Owner Stays Home	Yes	Until trigger	Yes	✓ Always
Early Exit Penalty	Sometimes	Significant	Fees apply	✓ None

The HEI Process

From initial conversation to funded — typically 2 to 3 weeks.

Eligibility Check

Day 1

Quick property and equity check based on address and estimated home value. Instant preliminary assessment.

Application

Days 2–5

Submit application with basic documents. A credit pull is conducted. No income documentation required.

Pre-Approval

Days 5–7

Receive an HEI estimate with maximum investment amount and pricing terms.

Processing & Underwriting

Days 7–21

Title ordered, escrow opened, appraisal completed. A dedicated processor handles documentation.

Approval & Funding

Days 21–28

Closing disclosure issued. Funds disbursed via wire or check after signing.

Post-Close

Ongoing

The investor manages the investment. You enjoy your funds with no monthly obligations until you choose to exit.

Estimate Your Repurchase Cost

Use our HEI Repurchase Calculator to model different scenarios — see how home appreciation, investment size, and duration affect your exit cost.

Open HEI Calculator

Frequently Asked Questions

What is a Home Equity Investment (HEI)?

A Home Equity Investment is a financial product where an investor provides you a lump sum of cash in exchange for a share of your home's future value at exit. Unlike a loan, there are no monthly payments, no interest rate, and no impact on your debt-to-income ratio. You retain full ownership and control of your property throughout the term.

How is an HEI different from a HELOC or home equity loan?

A HELOC or home equity loan is a debt product — you borrow money and make monthly payments on it, and it counts against your DTI. An HEI is not a loan. There are no monthly payments. Instead, the investor receives a percentage of your home's value when you sell, refinance, or buy out the agreement. HEIs also have much lower credit requirements (as low as 500 FICO) and require no income documentation.

Do I lose ownership of my home with an HEI?

No. You retain full title and ownership of your home throughout the entire term. The HEI investor holds a contractual right to a share of the home's value at exit — they do not own any portion of the property itself. You can sell, renovate, rent, or live in the home exactly as you would without the agreement.

How much can I get from an HEI?

Typical HEI investments range from $50,000 to $500,000, depending on your home value, equity position, and the investor's guidelines. The maximum investment is generally capped at 25% of your home's value (investment thickness). Your combined loan-to-value including the HEI typically cannot exceed 75%.

What credit score do I need for an HEI?

HEIs have significantly lower credit requirements than traditional lending. Most investors accept FICO scores as low as 500. Higher credit scores (580+) qualify for better terms and higher maximum OLTV (75% vs 60% for the lowest tier).

How do I exit or repay an HEI?

You can exit an HEI at any time during the term by selling your home, refinancing, or paying the repurchase amount in cash. The repurchase amount is the lesser of: (1) the investor's equity share of your home's value at exit, or (2) a safety cap — the investment amount compounded at 1.499% per month. The homeowner always pays whichever method is lower, providing built-in protection against outsized payback.

Is there a penalty for exiting early?

No. There are no early exit penalties. You can buy out the agreement at any time by paying the current repurchase amount. Many homeowners use an HEI as a bridge — they take the cash, clean up their financial profile, and then refinance into a conventional loan within a few months to a few years.

What properties are eligible for an HEI?

Eligible properties include owner-occupied homes, non-owner-occupied (investment) properties, 1–4 unit multifamily properties, properties held in an LLC, and properties held in a revocable trust. Property must be located in a state where the HEI investor is licensed.

Have more questions? Visit our complete FAQ page or check the mortgage glossary for definitions of common terms.

Rates and program availability may vary based on the state or region in which the financed property is located. This is not a credit decision, an offer, or a commitment to lend. Program restrictions apply.

Home Equity Investments are not loans. The HEI investor receives a share of the home's value at exit. Terms, pricing, equity multiples, and safety cap rates vary by investor and are subject to change. This page is for educational purposes only and does not constitute an offer, commitment, or guarantee of terms. Actual eligibility depends on property location, home value, equity position, credit profile, and investor guidelines. Contact Randy Mathis for a personalized assessment.