Frequently Asked Questions

A Home Equity Agreement (HEA) is a financial product that allows you to access a portion of your home's equity in exchange for sharing a percentage of your home's future value change. Unlike traditional home equity loans or HELOCs:

• You don't make monthly payments
• There's no interest that accrues over time
• It's not classified as debt on your credit report
• Settlement typically occurs when you sell, refinance, or at the end of the agreement term

Most homeowners can access between $50,000 and $500,000, depending on several factors including:

• Your home's current market value
• The amount of equity you have in your home
• Your property location
• Property type and condition

The only way to know exactly how much you qualify for is to complete a pre-qualification, which takes just 2 minutes and won't impact your credit score.

Yes, very different. Traditional HELOCs and home equity loans are debt products that require monthly payments and accrue interest. A Home Equity Agreement is not a loan—it's an agreement to share in your home's future value change.

Key differences:

• HELOCs/Loans: Monthly payments required, interest charges, hard credit check, income verification needed
• HEAs: No monthly payments, no interest, soft credit check, no income verification

The qualification requirements are much more flexible than traditional home equity products:

• Credit Score: Minimum 500 (vs 620-680 for traditional options)
• Income: No income verification required
• Employment: No employment verification needed
• Property: Must be your primary residence with sufficient equity
• Property Type: Single-family home, townhouse, or condo

The pre-qualification process uses a soft credit inquiry that does NOT impact your credit score. You can see what you qualify for with zero impact to your credit.

Only if you decide to move forward with the full application would a hard credit inquiry be performed, but this would be clearly communicated to you before it happens.

No! This is one of the major advantages of a Home Equity Agreement. Unlike traditional home equity loans or HELOCs, there's no income verification required.

This makes HEAs particularly attractive for:

• Retirees living on fixed incomes
• Self-employed individuals or business owners
• Freelancers or gig workers
• Anyone with non-traditional or variable income

Absolutely! Because there's no income verification requirement, Home Equity Agreements are ideal for self-employed individuals and retirees who may have difficulty qualifying for traditional home equity products.

You don't need to provide W-2s, tax returns, pay stubs, or any employment documentation.

The timeline breaks down as follows:

• Pre-qualification: 2 minutes (instant results)
• Full application: 15-30 minutes if you choose to proceed
• Closing: Most homeowners complete the full process in 3-4 weeks

This is typically faster than traditional home equity products, which can take 30-45 days or longer.

For pre-qualification, you only need basic information:

• Your home address
• Estimated home value
• Current mortgage balance
• Basic contact information

That's it! No financial documents, tax returns, pay stubs, or bank statements needed for pre-qualification.

You can use the funds for any purpose you choose. Common uses include:

• Debt consolidation (paying off credit cards, personal loans, etc.)
• Home improvements and renovations
• Education expenses or student loans
• Medical bills or healthcare costs
• Starting or growing a business
• Major purchases (vehicles, etc.)
• Emergency expenses
• Helping family members
• Anything else you need

No! A Home Equity Agreement works alongside your existing mortgage. You don't need to refinance, so you keep your current mortgage rate and terms.

This is particularly valuable if you have a low interest rate that you don't want to lose by refinancing.

Pre-qualification is completely free with no obligation. If you choose to proceed with a Home Equity Agreement, there may be closing costs similar to any real estate transaction (appraisal, title, recording fees, etc.).

All fees and costs will be clearly disclosed before you commit to anything. There are no hidden fees.

Settlement typically occurs when one of these events happens:

• You sell your home
• You refinance your mortgage
• The agreement term ends (typically 10-30 years)
• You choose to buy out the agreement early

At settlement, the amount due is calculated based on your home's value at that time and the agreed-upon sharing percentage. The specifics of how this is calculated will be clearly explained in your agreement.

If your home's value decreases, the provider shares in that loss. This is one of the unique features of Home Equity Agreements—the provider shares in both the upside and downside of your home's value changes.

You would only be responsible for repaying the original amount you received, adjusted for any decrease in your home's value based on the agreement terms.

Terms vary by provider, but many Home Equity Agreements allow early settlement without penalties. The buyout amount would be calculated based on your home's current value at the time you choose to settle.

Specific early settlement terms will be clearly outlined in your agreement documents.

Wise Homeowners is a marketing platform that connects homeowners with third-party home equity service providers. We do not provide the financial products directly.

We partner with reputable, vetted providers who offer Home Equity Agreements and similar products. When you submit your information, it may be shared with one or more of our partner providers.

A Home Equity Agreement may be right for you if:

• You have significant equity in your home
• You need cash but want to avoid monthly payments
• You're retired, self-employed, or have non-traditional income
• You have a lower credit score (500+)
• You want to keep your current low mortgage rate
• You're comfortable sharing in your home's future value change

This may not be right for you if:

• You prefer traditional debt products with set payment schedules
• You're not comfortable with value-sharing arrangements
• You have very limited equity

We recommend consulting with financial, legal, and tax professionals to determine if this is the right option for your situation.