The Little-Known Home Equity “Loan” With Zero Payments and Zero Interest Charges

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It’s possible to borrow from your home equity with zero payments and zero interest charges using this unique and little-known home equity “loan”. We’ll cover how it works and a few potential pitfalls to watch out for.

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If you’ve checked into a home equity loan lately, you probably already know that interest rates have increased a lot.

And of course, higher rates means higher monthly payments.

These days, a home equity loan can cost $250 to $300 per month to borrow a mere $25,000.

If you borrow $50,000, it could cost $500 to $600 or more per month. That’s a big payment for a relatively small loan!

And if you happen to have bruised credit, a limited or fixed income, or difficulty proving your income, it may be tough to even qualify for a home equity loan.

Fortunately, a regular home equity loan from a regular bank is no longer the only game in town. The world has advanced and a new option is available: the home equity agreement.

The No Payment Home Equity “Loan”

A home equity agreement offers a lump sum payout of up to $500,000 with zero monthly payments and zero interest charges – even if you have less than perfect credit, limited income, or have difficulty proving your income.

Home equity agreements can be structured in a variety of ways, but here’s how they typically work:

  • Cash lump sum – You receive a large lump sum of cash based on the equity in your home. Payouts can be anywhere from $30,000 to $500,000.
  • No monthly payments and no interest – Unlike a home equity loan or HELOC, no monthly payments are required and no interest is charged on your payout.
  • You remain the owner of your home – You’ll continue to pay your property taxes, homeowner’s insurance, and any existing mortgage payments and HOA dues (where applicable).
  • No minimum income requirements – Because there are no monthly payments, there are no minimum income requirements. It’s possible to qualify even if you have no income at all.
  • Qualify even if you have bad credit – You don’t need perfect credit to qualify; minimum credit scores are usually around 500.
  • Keep your existing mortgage – You don’t have to refinance or pay off your existing mortgage.
  • No age minimums – Unlike a reverse mortgage, there are no age minimums.
  • Flexible occupancy requirements – Owner-occupied homes, second homes, and investment properties are eligible.

In exchange for a lump sum payout, you agree to repay the investor a percentage of your home’s value at a future date, such as when you sell the home, the last borrower passes away, or you reach the end of the contract term, which usually lasts ten years.

Again, there are no monthly payments and no interest charges. You don’t need perfect credit and there are no minimum income requirements for most applicants.

Home equity agreements aren't available in all states and not everybody qualifies. Click the button below to get a free, no obligation payout offer today.

Get up to $500,000 with no payments or interest charges.
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A home equity agreement, or HEA, offers access to home equity with no mortgage payments, no interest charges, and without giving up ownership of your home, even if you have poor credit and difficulty proving income.

Use the Cash For Whatever You Like

The home equity agreement is an attractive option for many homeowners because it offers access to home equity without the payment headaches and interest costs of a regular home equity loan or HELOC. Homeowners commonly use the funds to:

  • Consolidate debt & reduce monthly expenses – Paying off your credit cards, personal loans, and auto loans could save hundreds (or even thousands) of dollars per month.
  • Improve credit scores – High credit card balances can damage your credit scores even if you make your payments on time. Paying off your credit card debt could improve your credit scores.
  • Pay off medical, dental, and vet bills – Many homeowners use a home equity agreement to clear up burdensome medical, dental, and vet bills.
  • Fund home repairs and improvements – Have your eye on new windows or a new kitchen or bathroom? A home equity agreement can pay for home improvements and repairs without adding a loan payment to your budget.
  • Rainy day or emergency fund – The cost of living has been rising fast, so it’s critical to have cash laying around for unexpected expenses.
  • College tuition and expenses – It’s no secret that college is expensive. A home equity agreement can pay for college tuition and expenses while avoiding the financial risks of student loans.
  • Start or expand a business – It’s not always easy to get your hands on capital to start or expand a business. A home equity agreement is viable source of cash to kickstart your business without adding a monthly payment to your expenses.

There are typically no restrictions on how you use the cash. You can use the money for pretty much whatever you like.

How Much Can You Get?

A home equity agreement typically offers cash lump sums of $30,000 to $500,000, depending on your needs and how much home equity you have.

Again, there are no monthly payments, zero interest charges, and it’s possible to qualify even if you have bruised credit, limited income, or can’t prove your income.

You can use the cash for whatever you need: pay off high interest debt, reduce monthly expenses, improve your credit scores, do home improvements, pay for college, start or expand a business, etc.

Ready to get a payout offer? Simply select how much cash you want to the right, then click the button to continue

Home equity agreements aren't available in all states and not everybody qualifies. Click the button below to get a free, no obligation payout offer today.

Get up to $500,000 with no payments or interest charges.
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Some Additional Considerations

The home equity agreement is a legitimate product, but there are some things you’ll want to consider before signing on the dotted line:

  1. The contract term – Remember, the investor wants to get repaid at the end of the contract term. If you plan to keep your home past the end of the contract, you’ll need to pay off the home equity agreement with cash and/or another loan.
  2. At least some closing costs – Like a regular mortgage, a home equity agreement usually has at least some closing costs, including origination, title, escrow, recording, appraisal, credit report, etc.
  3. Fees at buy out – There may be additional title, reconveyance, escrow, appraisal, or administration fees at the end when you repay the home equity agreement. Make sure you ask about these potential fees before closing.
  4. Home maintenance – As with a regular mortgage, it’s important to continue to maintain your home. If your home severely deteriorates, the investor may assess a “maintenance adjustment” on your home’s value at buy out. In other words, they may figure your final pay off amount based on what your home should be worth had it been maintained.
  5. Applying for a regular mortgage – Home equity agreements are unique and few mortgage lenders and professionals understand how they work. You may find it difficult or impossible to get a regular mortgage without first paying off the home equity agreement.
  6. Default – Even though there are no monthly payments, it’s still possible to default. Default events include falling behind on existing mortgage payments, property taxes, homeowner’s insurance, and HOA dues (if applicable). Other defaults could include zoning restriction violations, unpermitted additions and modifications, bankruptcy, and letting the home severely deteriorate. If you default, you may have to reimburse the investor for fees incurred to work out and resolve the default. If the default is serious and can’t be resolved, you could face foreclosure.
  7. Unfamiliar terms – The home equity agreement is a legitimate product, but it’s different than what most homeowners are used to. Even if you’re working with a reputable company who discloses and explains everything thoroughly, it’s possible to overlook important considerations that could have a negative impact in the future.
  8. Not available in all states – Home equity agreements are not available in all states.

A home equity agreement is a legitimate option, but it’s important to make sure you understand the terms and your obligations thoroughly before you sign the final agreement.

Where to Get A Payout Offer

If you’d like to find out how much you can get, we recommend starting with top-rated Unlock. If you’re not satisfied with their offer, there is no obligation to continue any further.

Select your payout amount using the slider to the right, then click the button to continue

Home equity agreements aren't available in all states and not everybody qualifies. Click the button below to get a free, no obligation payout offer today.

Get up to $500,000 with no payments or interest charges.
Trustpilot Rated 'Excellent'
You'll be redirected to Unlock, a leading provider rated 'Excellent' on Trustpilot (500+ Reviews). We may be compensated at no cost to you if you complete an application.