Home Equity Contract / Home Equity Investment (HEI)

What is it?

DirectLenderMatch classifies Home Equity Contract / Home Equity Investment (HEI) under the financing form “Shared-appreciation / home-equity contract.” Its typical use in this directory is: Existing homeowner receives cash now and owes formula-based lump-sum settlement later.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Home value/equity; provider records a property interest or lien. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Existing homeowner receives cash now and owes formula-based lump-sum settlement later.

What backs or supports it?

Home value/equity; provider records a property interest or lien.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Verified lenders or providers

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