The Home Equity Agreement: A Third Way That's Not as Simple as It Sounds Home equity agreements have emerged as a new way for homeowners to tap into their property's value without taking on debt or making monthly payments.
However, scratch beneath the surface, and you'll find that these deals are more complicated than they initially seem. On paper, home equity agreements sound like a dream come true.
Instead of borrowing money at high interest rates or risking credit scores with a HELOC (home equity line of credit), homeowners can receive a lump sum payment today in exchange for giving an investor a share of their future home value.