Can’t qualify for a HELOC? Fintechs will buy a stake in your home equity
A new breed of financial technology firms is pitching American homeowners on a different way of tapping into home equity: If you’re sitting on a pile of it, these investors will buy a piece of your house. The co-ownership arrangement isn’t cheap, but it presents an alternative to furloughed or laid-off workers who no longer qualify for home equity loans or cash-out refinances. You get the cash now, and your new co-owner shares in the rise — or perhaps fall — in the value of your home when you sell. This article originally appeared on Bankrate. Read the full article.