Jason Gay

HEIs provide cash for a share of your home's future value, with repayment due in a lump sum.
No monthly payments; credit requirements are more lenient than HELOCs or home equity loans.
Repayment includes principal plus a risk adjustment rate, which can be costly if your home appreciates.
HEIs are less popular but growing: **11,000** contracts, **$1.1B** volume in 2024 (CFPB).
Experts advise understanding risks and consulting a housing counselor before choosing an HEI.

Shared Equity Cash for Homeowners

Fees like origination, prepayment, and exit charges quietly boost lender returns. 

Private credit often yields 8–12% vs 3–6% in public bonds, secured by real assets. 

Risk spreads in direct private lending outpace leveraged or high-yield bonds long term. 

Market dislocations and reduced bank lending open high-yield niches for private lenders. 

Real estate credit’s elevated spreads and reset values create above-average income opportunities.