How a Home Equity Agreement Works
You Get Cash Now
- Leap gives you a lump sum upfront in exchange for a share of your home’s future value.
No Monthly Payments
- Unlike a loan, you don’t pay anything back until you sell, refinance, or the term ends (10
years)
Leap Shares in Your Home’s Growth (or Loss)
- When the agreement ends, the investor gets their percentage of your home’s value at that
time.
- If your home went up, they get more; if it dropped, they may get less (terms vary).
You Keep Control
- You still own your home—you just repay the investor when you’re ready to move or settle
the agreement.
Here’s a simple 4-step breakdown of how it works:
Agreement & Evaluation
- A homeowner partners with Leap.
- Leap evaluates the home’s current value and future appreciation potential.
Receive Cash in Exchange for Future Equity
- The homeowner receives a lump sum in exchange for a percentage of their home’s future
value.
- No monthly payments or interest (unlike a loan).
Repayment Trigger
- The homeowner can buy back their share at any time during the course of the agreement.
- The agreement ends when the homeowner sells the home, refinances, or reaches the end of
the term (typically 10 years).
Settlement
- The provider receives their agreed-upon share of the home’s value (based on appreciation).
- If the home’s value decreased, some HEAs adjust the repayment amount (terms vary).
Here are some of the for homeowners:
No Monthly Payments or Debt
- Unlike home equity loans or HELOCs, HEAs do not require repayment in installments.
Financial Inclusion
- Lenient approval terms, making HEAs accessible to those with lower credit.
No Interest
- Since HEAs are not loans, there’s no interest charged.
Retain Ownership & Stay in Your Home
- Homeowners keep the title and can continue living in the house.
