Comparing HELOCs and Home Value Investments
If you have big bills coming up but find your cash reserves just won’t cut it, you’re not alone. A majority of Americans today are asset-rich and cash-poor, meaning most of their wealth is tied up in things they own, like their home. A HELOC is one of the most common ways homeowners convert their largest asset – their home equity – into cash, but how does it compare to a Home Value Investment?
How does a HELOC work?
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.
How does a Home Value Investment work?
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.
See if partnering with Noah is right for you
Here’s a comparison of a Home Value Investment from Noah compared to a standard HELOC.
NOAH
HELOC
NOAH
HELOC
Interest rate
0%
6% to 14%
Interest rate
0%
6% to 14%
Monthly payments
No
Yes
Monthly payments
No
Yes
Tap your home equity with Noah
01
We approve you for a Home Value Investment
02
You use the funding to meet your goals
03
Noah shares in your home value
See what our homeowner partners say
Keep reading
HOMEOWNERSHIP
2020-10-27
Is Now The Best Time To Tap Into Your Home Equity?
Considering a home equity loan? Learn alternative ways of accessing your home's equity, and figure out whether now is a good time to capitalize on those funds.
FINANCIAL WELLNESS
2020-06-03
What Does It Mean to Be Asset-Rich, Cash-Poor?
Here’s what you need to know about how your home contributes to your total wealth, and how to approach balancing cash and assets.
HOMEOWNERSHIP
2020-08-05
How Much Does It Cost to Renovate a House?
Learn the pros and cons of remodeling, the cost of renovating a house, financing your remodel, and more with Noah.

Eligibility criteria and costs for each comparable financing option were sourced in July 2020 from various sources and are meant to be used as estimates only; they are not quotes for financing. Approval for a home value investment from Noah depends on a variety of eligibility criteria which can be found at https://noah.co/eligibility.