Best Home Investment Equity Companies in America

#1
Top Rated
  • Hometap
    #1 Rated Home Equity Investment Lender

    • Reverse Mortgage Alternative
    • Home Equity Investment (Not a Loan)
    • Receive Your Investment in as Little as 3 Weeks
    • Get up to $300k in Cash
    • Free Qualification Check and Offer
  • View Site 617-415-4419

#2
  • Point
    #2 Rated Home Equity Investment Lender

    • Reverse Mortgage Alternative
    • Home Equity Investment (Not a Loan)
    • Excellent Third Party Online Reviews
    • Free Qualification Check and Offer
    • Get up to $350k or 20% of your property’s value
  • View Site 855-842-2440

#3
  • Unison
    #3 Rated Home Equity Investment Lender

    • Reverse Mortgage/HELOC Alternative Product
    • Home Equity Investment (Not a Loan)
    • No Monthly Payments or Interest – 30-Year Term
    • Get up to $500K in cash or 17.5% of home value
    • Free Qualification Check and Offer
  • View Site 855-920-0982

Home Equity Investment Guide

A home equity investment is an increasingly popular financial product available to homeowners. This relatively new product is offered by several companies and has pros and cons associated with it that consumers should understand.

What is a Home Equity Investment?

A home equity investment allows homeowners to tap into the home equity that has been built up in exchange for a minor ownership stake in the property.

The investment company then participates in the increase or decrease in the value of the property over time. There are no monthly mortgage payments but homeowners are still responsible for paying property taxes, insurance, and maintenance.

The repayment of the loan is deferred until the homeowner sells the home or at the end of the duration of the investment term.


How Does a Home Equity Investment Work?

To qualify for a home equity investment you must own a home and have enough equity built up in your home. It is ideal for homeowners who want to tap into the equity built up.

If a consumer qualifies an investment company will give a portion of that built up equity (typically 5%  to 20% of your home’s current value) in exchange of a stake of the future appreciation (or loss of value) in your home.

This type of product is ideal for homeowners who may not qualify for a HELOC or home equity loan due to credit or if they’re not yet 62 years old to do a reverse mortgage loan.


What Are The Pros and Cons of a Home Equity Investment?

There are several considerations to make before deciding to proceed with a home equity investment. As with any large decision, it’s helpful to have an understanding of the pros and cons associated. Some of them include:

Pros:

  • You continue to live in your home and retain title to your home. The lender has no occupancy rights to your property.
  • You generally receive the proceeds of the investment as tax-free cash in which you can use the money as you see fit. (It is recommended though to speak with your financial advisor to verify your specific situation.)
  • The process is incredibly fast in most cases. Funds can typically be processed and distributed to individuals within two to three weeks.
  • There are no age requirements like with a reverse mortgage loan.
  • Great alternative to HELOC or home equity loan for those who don’t have perfect or good credit.

Cons:

  • There is a 2.5 – 3% origination fee associated with the loan. This varies between lenders.
  • The investment is typically due and needs to be fully paid back with appreciation at the end of the loan term, which ranges from 10 to 30 years depending on the lender.
  • Not all homes may qualify and not all investment companies are licensed in all states.

What is the Process of Getting a Home Equity Investment?

The process of getting a home equity investment is fairly straightforward and typically entails the following steps:

  1. Research and identify companies that may be right for you.
  2. Fill out an online form or give them a call to start the process.
  3. Discuss what options may be available to you; what you may qualify for; what the time required to close your loan looks like and to have your questions answered.
  4. Check to see if you qualify. Homeowners need to check to see if they qualify after answering some questions which typically takes just a few minutes through a lenders website or over the phone.
  5. The investment company makes you an offer. The offer is typically for between 5% to 20% of your home’s current value.
  6. Appraisal of home. Your home is appraised and the cost of the appraisal is paid for by you (typically $500 – 700).
  7. The investor pays you. You meet with a notary to sign the agreement and within a few days the money is transferred to you.
  8. Settle the investment. The investment is typically paid back when you either sell your home, at the end of the term or during the term when you pay them back.

Please note that not all home equity investment companies have the same process. Some may have more or fewer steps depending upon their process. Please inquire with the investment companies at the start of the discussion to outline their own process to properly set expectations.


How We Rate Home Equity Investment Companies

We independently identify home equity alternative companies.  From there our editors review them in a myriad of ways from years in business, product offerings,  states licensed, digital offerings, customer service, and online reviews amongst other criteria.

Our goal is to present objective representations of companies to give consumers informed information to make a decision.

 

Disclosure: We do receive advertising compensation from some partners, which influences what companies appear on our site and where they appear. Review Counsel is a subsidiary of Mutual of Omaha Mortgage, Inc. For additional details please click here.


 

 

Best Overall
  • Hometap

    • Reverse Mortgage Alternative
    • Home Equity Investment (Not a Loan)
    • Receive Your Investment in as Little as 3 Weeks
    • Get up to $300k in Cash
    • Free Qualification Check and Offer
  • View Site 7-415-4419