Best Shared Equity Agreements | March 2021
Shared equity agreements, also known as real estate profit sharing, allow you to tap into your home's equity without getting into debt. There are no interest rates or monthly payments to worry about. However, they are not for everyone. Are you considering a shared equity program? Here’s everything you need to know about how shared equity agreements work.
Shared equity agreements, sometimes known as home equity investments, allow homeowners to cash out on their equity without getting into debt. It works like this. Investors give homeowners a lump sum in exchange for a share in the future value of their homes. When the homes are sold (or when the contract term ends), the investors receive their share from the sale. If the value of the house increases, so does the amount the investor receives. If the house drops in value, the investor also shares in the loss.
Home equity agreements are an attractive option for people who either don't qualify for traditional home equity financing or want to tap into their home equity without getting into debt. Here is our list of the top-rated shared equity agreements.