- An HEI gives you a lump sum of cash today in exchange for a percentage of your home's future value — no monthly payments, no interest, no new debt on your balance sheet.
- Typical payouts range from $15K to $500K, with terms of 10–30 years depending on the provider.
- The tradeoff: you share a piece of your home's future appreciation (or depreciation) with the investor.
- An HEI isn't better or worse than a HELOC — it's a different tradeoff. The right choice depends on your cash flow and how you feel about sharing future value.
A Home Equity Investment isn't a loan.
Most ways to access your home's value involve borrowing — you take on debt, make monthly payments, and pay interest. A Home Equity Investment works differently.
With an HEI, an investor gives you a lump sum of cash today. In return, they receive a percentage of your home's future value when you eventually sell, refinance, or reach the end of the agreement term. No monthly payments. No interest. No debt on your balance sheet.
The tradeoff? You're sharing a piece of your home's future value — both the upside and the downside. If your home appreciates, the investor benefits alongside you. If it depreciates, you may owe less than what you received.
Think of it like selling a small stake in your home to an investor. You get cash now, they get a share of the outcome later. Whether that's a good deal depends on your situation and what your home does over the next 10–30 years.
Four steps, start to finish.
Want the full breakdown? We cover settlement mechanics, costs, appreciation math, and what happens if your home loses value.
Read the deep dive →It comes down to what you value more.
An HEI isn't better or worse than a HELOC — it's a different tradeoff. The right choice depends on your financial situation, your cash flow, and how you feel about sharing your home's future value.
You'd rather have zero monthly payments
- An HEI gives you cash without adding a bill — you don't pay anything until you sell, refinance, or reach the end of your term
- No impact on your monthly budget
- No debt added to your balance sheet
- If your home loses value, you may owe less than what you received
You'd rather keep 100% of your home's value
- A HELOC or home equity loan lets you borrow against your equity while keeping full ownership
- You keep all the upside if your home appreciates
- Cost is predictable (fixed or variable interest rate)
- Requires qualifying income and credit for payments
Are you willing to share some of your home's future value in exchange for not making monthly payments today? There's no wrong answer — it's a preference, not a test.
How does an HEI compare?
Three products, three very different structures. Here's a quick comparison:
| Feature | HEI | HELOC | Reverse Mortgage |
|---|---|---|---|
| Monthly payments | None | Yes (interest on draws) | None |
| Adds debt? | No | Yes (2nd lien) | Yes (growing loan balance) |
| Age requirement | None | None | 62+ (HECM) |
| What you give up | Share of future value change | Interest payments | Equity over time (loan grows) |
| Best for | Cash-flow constrained, any age | Strong credit, can handle payments | Retirees, income supplementing |
HEIs and reverse mortgages both offer no monthly payments, which is why they get confused. The difference: a reverse mortgage is a loan (your debt grows over time), while an HEI is an equity share (no debt, but you share the outcome). HEIs are available at any age; reverse mortgages require you to be 62+.
We cover HELOCs in detail here and HELOC-backed credit cards here.
This content is for educational purposes only and does not constitute financial advice. learnhomefinance is not a lender, broker, or financial advisor. Consult a qualified professional before making financial decisions.
An HEI might not be the right fit.
If you'd rather keep 100% of your home's value or want a different structure, here are the alternatives.
Borrow against your equity with a revolving credit line. You make monthly interest payments, but every dollar of appreciation stays yours. Best if you have strong credit and steady income.
A credit card backed by your home equity — lower APR than traditional credit cards, in a format you already know how to use. Newer product category from Aven and Trovy.
Explore how HELOCs work, current rates, and what to watch for.
Learn about HELOCs →A newer product category — HELOC-backed credit cards from Aven and Trovy.
Learn about HELOC Cards →