The fundamentals of shared equity products

Shared equity products (SEPs), also known as home equity investments, home equity agreements, or shared appreciation agreements, are innovative equity-based home 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 are financial contracts under which a homeowner receives a lump sum cash payment from an investor. There are no monthly payments due to the investor. Instead, the homeowner will share a percentage of their home’s future value with the investor when the contract settles, which occurs when the home is sold, when the homeowner buys the investor out, or upon reaching the maturity date of the contract.

“I’m going to use the funds to fix up my own house to become an investment property.”

Khalia, Michigan

“I was close to drowning. My mother outlived her money, so I was paying her bills and mine. The money gave me opportunity and helped me keep her in a safe place.”

Etta, North Carolina

“The entire process was extremely seamless and professional. This is a much better way of taking equity out of our property without taking out a high-interest or high monthly payment loan.”

Zachary, New York

“I paid off my debt and am looking forward to seeing a much improved credit score in a few months!”

Kristine, California

“I [bought] a couple cars in Gautemala [to] start my own taxi business. It’s feeding me an extra $600 per month. Plus, I now have substantial backup reserves in the bank, all my debt is gone, and my credit score jumped 70 points.”

Axel, Massachusetts

“My goal was to be as protected as possible and not have to worry about monthly payments if the market went up or down.”

Luis, Florida

Differentiation by design

A relatively new category of equity-based home financing, SEPs differ fundamentally from traditional debt-based products like first or second mortgages, home equity lines of credit, or reverse mortgages. They are unique in offering the following features:

  • No monthly payment

  • No interest rates

  • No outstanding loan balance or amortization
  • No credit reporting
  • Underwriting based primarily on home equity rather than credit and income

CHEP members provide homeowners with clear and straightforward terms. Our SEPs are built to be competitive, consumer-friendly, and accessible by providing a new way to tap into home equity without adding monthly payments or pressure to sell. Additionally, our goal is to make the process of obtaining a SEP fair and transparent.

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 Solutions infographic
CHEP Solutions infographic