Leap's Purpose-Built HEAs Are Another Distinguishing Client Benefit

Leap Home Equity Agreements (HEAs) are not loans. They are shared agreements between a homeowner and Leap. Also known as Home Equity Investments (HEIs), these agreements provide homeowners with a cash payment, with no interest rate and no monthly payments, in exchange for a portion of their home's future appreciation. Importantly, Leap HEAs are purpose-built: There are specific HEAs for seniors, underserved homeowners, small businesses and homeowners with short-term financial needs.

Leap HEAs provides a lump sum payment in exchange for upto 18% equity in a home. The homeowner must have at least 30% in equity to qualify for Leap’s HEA program.  As the home appreciates in value, both the homeowners and Leap win. If the home devalues, the homeowner may actually owe less. Leap HEA terms can be as short as 1 year, but typically are 10-year term agreements. At the end of the HEA term, the homeowner can either buy back the equity, extend the agreement term or sell the home, so the equity stake can be recouped by the investor. Homeowners typically buy themselves out of the HEA before the term expires.

Leap wants the homeowner to use the cash payment to set off a personally transformative chain reaction: Leap HEAs provide cash for homeowners to pay down existing debts, such as credit card or medical debt. This, in turn, lowers the homeowners’ debt-to-income ratio while raising the homeowner’s credit score, ultimately improving the homeowner’s financial wellness, relevancy and power.