A HESA differs from other home equity financing options, such as a home equity line of credit (HELOC), because its value is tied to your home’s equity in the future, rather than today. Since a home equity agreement is not a loan, there are also no monthly payments or accrued interest.
With a HESA from Clay Financial, eligible homeowners can receive up to 17.5% of their home’s value, to a maximum of $500,000, as a tax-free, lump-sum cash payment. In exchange, Clay Financial shares a percentage of your home’s future appreciation. The HESA ends when you sell your home or buy back the interest after the first five years. The maximum term for a HESA is 25 years.
Steps To Get a Home Equity Sharing Agreement
- Get an estimate online. This will tell you if you’re eligible for a HESA and how much you may be able to access.
- Submit an application. You and any co-owners will…