Shared Equity Products
What Are Shared Equity Products?
Shared equity products (SEPs), otherwise referred to as a home equity investments or home equity agreements, are innovative financing tools that empower homeowners to tap into the equity they have built in their most valuable asset – their home – without taking on debt.
SEPs enable homeowners to receive a lump sum of cash in exchange for a share of their home’s future equity or appreciation, which allows homeowners to pay off high interest debt, start a small business, make home improvements, or pay for a child’s education, all without taking on any additional debt. In return, the investor shares a portion of the home’s equity when the homeowner decides to sell the home, buy out the investment, or at the end of the investment term.
It is important to note that SEPs are not home equity loans or home equity lines of credit; they are an investment in the property. Unlike other home financing choices, SEPs have no interest rate, no monthly payments, and typically no income requirement that might limit customers’ access to their equity. Additionally, homeowners are not personally liable if the amount the investor receives at settlement is less than the amount they are entitled to under the contract.
SEPs enable homeowners with various credit scores, incomes, and financial situations to access the equity they have built in their home.
To learn more about SEPs, read our FAQ guide.
CHEP members offer homeowners a highly transparent and efficient process designed to ensure they are well-informed and protected by supporting clear and appropriate federal and state regulations.
Our members operate in Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Washington, DC.
