Question 1

What is a Home Equity Investment?

Accepted Answer

A Home Equity Investment (HEI) is an agreement between you and Truehold. We provide cash today, between $30,000 and $600,000 based on your home's equity and value, in exchange for an interest in your home's future value. There are no monthly payments. You settle the agreement when you sell your home, refinance and use the proceeds to settle, or at the end of the term. The amount you'd pay to settle is capped at a 19.90% annualized rate of return, compounded annually.

Question 2

How does this work without monthly payments?

Accepted Answer

There are no monthly payments because an HEI isn't a traditional loan. You receive cash today in exchange for an interest in your home's future value. You settle the agreement when you sell, refinance, or at the end of the term.

Question 3

Will I stay the sole owner of my home?

Accepted Answer

Yes. You retain 100% ownership and hold title. You can renovate, refinance, and live in your home as long as you'd like, subject to the terms of your agreement. Truehold does not become a co-owner of your home but instead records a lien on the property to secure its contractual interest in the investment.

Question 4

What do I need to qualify for a Truehold HEI?

Accepted Answer

You'll need at least 25% equity in your home and a minimum credit score of 500. There's no income or employment verification required. Your home's value, location, and property type also factor into your offer. Additional eligibility criteria may apply.

Question 5

What types of properties are eligible?

Accepted Answer

Single-family residences and townhomes valued between $200,000 and $5,000,000. Primary residences only. Condos and 2-4 unit properties are not eligible.

Question 6

What states does Truehold offer HEIs in?

Accepted Answer

We offer HEIs in Florida, Georgia, Indiana, Kansas, Kentucky, Missouri, New Mexico, Oklahoma, and Tennessee.

Question 7

How much cash can I receive?

Accepted Answer

Between $30,000 and $600,000, depending on your home's equity and value. Specifically, you can access up to 25% of your home's value, capped at 80% combined loan-to-value (the total of your mortgage, plus this investment, measured against its value). Your maximum combined loan-to-value depends on your individual FICO score.

Question 8

What does a Truehold HEI cost?

Question 9

How long is the investment term, and can I exit early?

Accepted Answer

The standard term is 10 years, but your term will be longer if your senior lien has more than 10 years of term remaining. That aligns the HEI term with your existing mortgage term. You can settle at any time by selling your home, refinancing and using proceeds to settle the investment, or using other funds. There are no prepayment penalties. You pay for an appraisal at exit, and the settlement must be completed within 60 days of the appraisal.

Question 10

How is my settlement amount calculated?

Accepted Answer

Your final settlement amount is based on your home's value at the time you settle, capped at a 19.90% annualized rate of return, compounded annually, on Truehold's original investment amount, whichever is lower. This cap applies whether your home's value goes up, stays the same, or goes down. A detailed breakdown of scenarios for various home values and timeframes is included in your closing disclosure, so you know what to expect before signing.

Question 11

What happens if my home value decreases?

Accepted Answer

If your home's value decreases at the time of settlement, you pay an amount to Truehold based on the Truehold percentage specified in your agreement, subject to the 19.90% cap, compounded annually. Depending on the amount of the home's depreciation, that amount may be more or less than Truehold's original investment.

Question 12

What can I use the money for?

Accepted Answer

Anything you want. There are no restrictions on how you use your funds. Home improvements, debt consolidation, investments, education, emergencies, starting a business, helping family, or any other purpose.