When you get a home equity line of credit (HELOC), a lender will approve you for a maximum credit line from which you can borrow and repay multiple times, the way you would with a credit card. During your initial draw period – when you can request financing up to your approved credit limit – your interest rate may increase unexpectedly, and you may be required to make monthly interest payments. During the repayment period, your required monthly payments will increase to include the principal and your accrued interest.

When you get a home equity sharing agreement, a partner like Noah will approve you for a maximum funding amount in exchange for a percentage of your home’s value. Unlike a HELOC, a Home Value Investment does not have any interest or monthly payments associated with it – instead, you’ll pay Noah back up to 10 years later based on the value of the home at that time. If it’s grown in value, we’ll share in the gains with you. If it’s decreased in value, we’ll also share in those losses alongside you.