Key takeaways

Home equity sharing agreements (HEAs) are costly and financially risky, requiring homeowners to give up a portion of their home’s future value for a lump-sum payment.

Also known as home equity investments (HEIs), these products are an alternative for homeowners with poor credit or those who may not qualify for traditional home equity products.

These agreements are complicated, with each company having its own formula and rules to determine how much the homeowner ultimately pays — and very few consumer protections.

After the home is sold or at the end of the contract period, the homeowner repays the investors, which can add up to hundreds of thousands of dollars.

Home equity sharing agreements (HEAs) offer a lump sum in exchange for a share of your home’s future value.…