I need one of these arrangements, not because I cannot afford to make a loan payment, but because my income shown on my tax returns is low and my debt to income is too high. Even though a HELOC would pay off my credit cards, and complete my pending Home renovation and would reduce my payments by $500 per month, they say I do not qualify. I have been making my mortgage payment on time for 17 years and have almost $300,000 in equity, and owe only 80,000, but all lenders say I don't earn enough to be loaned a HELOC or Home Equity loan. It is EFFING crazy. Unfortunately, it appears Texas does not allow these type agreements.
Good info here. Thanks! However, I wish someone would analyze this from a perspective of monthly cashflow during ten years.... It seems there is a big difference between having a 200k 2nd mortgage and doing the 200k equity agreement (with no monthly payments for ten years). That cashflow ball and chain of over $1500/month on the loan seems to make the equity agreement look a lot sweeter, even with the significant ROI you are giving up..... I just think the idea of no monthly payments should be looked at as a really great advantage. I'm not convinced it's a great arrangement, but it could still be true that even though that investor is making a very high rate of return, the "borrower" receives a huge advantage in having no payments (cashflow neutral $$). Yes, you are selling some of the future growth of your home's equity.... But that sounds similar to making money while your sleeping (passive investment). Any thoughts?
If you're asking should you borrow from a HELOC or sell equity in your home I'd definitely go with the HELOC. Selling equity should be a last resort in my opinion. It comes down to how to save the most money in interest. Your HELOC rate should be far less than the credit card rate, so using a HELOC to pay off high interest cards could be a good move. It depends on you and your overall financial situation. I'm no expert so please don't consider this financial advice. IT's just what I would do ;o)
@@TimKnox2020outta curiosity …are banks now offering helocs? When I had my ‘financial must’ (couple yrs back) due to pandemic issues, amongst others, helocs were not being offered by banks & this ‘creative sell of equity’ solution my only real option.
@@TimKnox2020 ... a lot of us do not qualify for the HELOC or Home Equity loans because of income or debt to income ratios. I have a home that is almost paid for with a lot of equity but every lender declines me, even with an excellent credit rating and a lot of home equity. This type product is exactly what I need. Unfortunately not available in Texas
Hopefully you see this I recently inherited my aunts home after her passing, she took a home equity loan from hometap, how do i proceed here, do i owe then money if i sell, can i own the home to the end of the term etc..? Thanks
I didn’t hear you cover the part if you pay your HEA all the way down within those years of contract ( let’s say 10yrs) do you still have to give them the share in equity? Can you buy out there share? Prepayment penalty? How does that work?
I have home renovations and credit cards I would like to pay off. I have a lot of home equity, but a home in disrepair. I am in a booming real estate market. This makes a lot of sense for me. I can afford a HELOC or Home Equity but the lenders say I do not earn enough. Even though a HELOC would lower all of my monthly payments by $500. A lot of UBER drivers are in the same boat as I am. This type agreement serves the needs of a lot of us.
From what I understand, there’s no payments. At the end of term, if you haven’t sold or refinanced, I assume you’d need to refinance to tap into the equity to pay them back.
Taking on this loan means at some point you will be forced to sell your home to pay them back. It also means you will forfeit your future equity. Choose wisely 😅
don't sleep on the "deferred maintenance agreement" part of the Equity Sharing contract. Will usually cost many thousands of dollars to fulfill.
I have a deal right now that this would work perfectly for. A double deal, actually, and it will be a win-win all around.
Thanks for explaining a new type of robbery. ^.^
I need one of these arrangements, not because I cannot afford to make a loan payment, but because my income shown on my tax returns is low and my debt to income is too high. Even though a HELOC would pay off my credit cards, and complete my pending Home renovation and would reduce my payments by $500 per month, they say I do not qualify. I have been making my mortgage payment on time for 17 years and have almost $300,000 in equity, and owe only 80,000, but all lenders say I don't earn enough to be loaned a HELOC or Home Equity loan. It is EFFING crazy. Unfortunately, it appears Texas does not allow these type agreements.
What companies offer this?
Good info here. Thanks!
However, I wish someone would analyze this from a perspective of monthly cashflow during ten years.... It seems there is a big difference between having a 200k 2nd mortgage and doing the 200k equity agreement (with no monthly payments for ten years).
That cashflow ball and chain of over $1500/month on the loan seems to make the equity agreement look a lot sweeter, even with the significant ROI you are giving up.....
I just think the idea of no monthly payments should be looked at as a really great advantage.
I'm not convinced it's a great arrangement, but it could still be true that even though that investor is making a very high rate of return, the "borrower" receives a huge advantage in having no payments (cashflow neutral $$). Yes, you are selling some of the future growth of your home's equity.... But that sounds similar to making money while your sleeping (passive investment).
Any thoughts?
Any good and reputable companies you can recommend?
Very helpful
I need to know what be best Heloc or Heloan cause of CCards but I want to take out a little more
If you're asking should you borrow from a HELOC or sell equity in your home I'd definitely go with the HELOC. Selling equity should be a last resort in my opinion. It comes down to how to save the most money in interest. Your HELOC rate should be far less than the credit card rate, so using a HELOC to pay off high interest cards could be a good move. It depends on you and your overall financial situation. I'm no expert so please don't consider this financial advice. IT's just what I would do ;o)
@@TimKnox2020outta curiosity …are banks now offering helocs? When I had my ‘financial must’ (couple yrs back) due to pandemic issues, amongst others, helocs were not being offered by banks & this ‘creative sell of equity’ solution my only real option.
@@TimKnox2020 ... a lot of us do not qualify for the HELOC or Home Equity loans because of income or debt to income ratios. I have a home that is almost paid for with a lot of equity but every lender declines me, even with an excellent credit rating and a lot of home equity. This type product is exactly what I need. Unfortunately not available in Texas
Hopefully you see this
I recently inherited my aunts home after her passing, she took a home equity loan from hometap, how do i proceed here, do i owe then money if i sell, can i own the home to the end of the term etc..? Thanks
I didn’t hear you cover the part if you pay your HEA all the way down within those years of contract ( let’s say 10yrs) do you still have to give them the share in equity? Can you buy out there share? Prepayment penalty? How does that work?
Daneli you don't pay it down. It's not a loan. They are buying the equity to keep.
There is no monthly payment. Hence, no prepayment penalty. (…I do have one these thru hometap…).
@@movetohuntsvillewhat if the home does NOT appreciate and home value crashes down at yr 10?
@@WheelerRickRambleshow much of your house value will they give you ?
would they buy all or most of the equity in your home
do you know if you can do it on investment properties?
If you own the property you should be able to sell the equity.
thanks for the information
The one thing you didn’t mention was what if you don’t sell your home in 10 years how do they get their money back?
Probably a lien and may force the sale
Can you get the HEA to payoff your current mortgage so no more mortgage payments?
Exactly what I was thinking especially if it’s only due once I sell. I won’t be selling for 30 or 40 years. Or I could take it and buy more property
I don't understand how this is good. If you don't have the money now, how are you going to have the money in 10 urs to oay them back.
I have home renovations and credit cards I would like to pay off. I have a lot of home equity, but a home in disrepair. I am in a booming real estate market. This makes a lot of sense for me. I can afford a HELOC or Home Equity but the lenders say I do not earn enough. Even though a HELOC would lower all of my monthly payments by $500. A lot of UBER drivers are in the same boat as I am. This type agreement serves the needs of a lot of us.
I eant to do this but can i do this in a divorce buyout
What if you can’t pay it over the 10 years for whatever reason
From what I understand, there’s no payments. At the end of term, if you haven’t sold or refinanced, I assume you’d need to refinance to tap into the equity to pay them back.
Any companies that will invest in a manufactured home on leased land?
I heard this is impossible, but their selling high as stick and brick homes now. In Tn anyway
Taking on this loan means at some point you will be forced to sell your home to pay them back. It also means you will forfeit your future equity. Choose wisely 😅
And wonder if you sold before the 10 years? Yes after divorce with 5kids still at home im poor poor😂
Just another vulture trying to scam honest folks!