A Home Equity Agreement is a new way to access your home's equity — without taking on debt, making monthly payments, or giving up ownership of your home. Here's how it works at a high level:

• Monthly payments: None
• Interest rate: None
• Is it a loan? No — it's an equity sharing agreement
• Home ownership: You keep full ownership
• Term length: 10 years
• Payoff required when: You sell, refinance, buy out the agreement, or reach maturity
• What the investor participates in: Your home's future appreciation (and potentially depreciation, if applicable)
• Recorded lien: Yes, typically as a second lien behind your existing mortgage

In short: you get cash today, keep your home, and settle up with Nada when the agreement ends — on your timeline.

Nada’s Home Equity Agreement product unlocks a new way for homeowners to trade some of their equity for cash, without monthly payments.

In exchange for the upfront cash paid to you, an investor is granted an interest in the home's future appreciation as a co-investor. This means that the investor will share in any increase in the value of your home over time. As your property's market value rises, so too does the investor's stake in that appreciation. This partnership allows you to access funds immediately without the burden of monthly payments, while the investor benefits from potential future gains when the property is sold or refinanced. Essentially, you are not only receiving cash to use as you see fit, but you are also entering into a mutually beneficial agreement that aligns both your financial goals and those of the investor.

A Nada Home Equity Agreement and a Home Equity Line of Credit (HELOC) are both ways to leverage the equity in your home, but they function quite differently.

A HELOC is a revolving line of credit that allows homeowners to borrow money against the equity of their home. You can draw from it as needed, up to a certain limit, and during the draw period, you only need to make payments on the interest. The interest rates are variable, which means they can change over time.

On the other hand, Nada's Home Equity Agreement (HEA) is not a traditional loan product like a HELOC. It’s a program that allows homeowners to sell a percentage of their home’s future appreciation in exchange for cash today. This is not a loan, so there’s no interest or monthly payments. Instead, when you sell your home or buy out Nada’s share, Nada receives the agreed-upon percentage of the home’s appreciation.

In summary:

• HELOC: A loan with variable interest rates and payments based on the amount borrowed against the home’s equity.
• HEA: An investment product where you receive cash today in exchange for a portion of your home’s future appreciation.

It’s important to consider your financial situation and goals when deciding between these two options. A HELOC might be better if you need flexible access to funds and are comfortable with the associated risks of variable interest rates. Nada's Homeshare could be a good choice if you’re looking for cash without monthly payments and are willing to share your home’s future appreciation.

A Home Equity Agreement may be a good fit if you:

• Want cash without monthly payments — Unlike a HELOC or cash-out refinance, a Nada HEA gives you a lump sum with no monthly obligation. You repay when you sell, refinance, or choose to buy out the agreement.
• Have significant home equity — To qualify, your mortgage balance must be under 75% of your home's current market value, meaning you need at least 25% equity to get started.
• Want to protect a low-rate mortgage — If you locked in a favorable rate, a Nada HEA lets you access cash without refinancing or giving up that rate.
• Are self-employed or have non-traditional income — Because an HEA is not a loan, it doesn't require W-2s or strict income verification the way a traditional mortgage product does.
• Need flexibility that traditional lending doesn't offer — HEAs are not evaluated on debt-to-income ratios. We require a minimum FICO score of 500 and assess you as an investment partner, not a borrower.

A Home Equity Agreement is a unique financial product designed specifically for responsible homeowners in most U.S. States. This agreement allows homeowners to access a portion of their home’s equity without incurring additional debt. To qualify, you must have more than 25% equity in your home (mortgage balance under 75% of market value), no recent late mortgage payments, and reside in serviced areas. Meeting these criteria enables you to unlock your home’s equity while maintaining financial stability.

For an instant pre-approval complete our short online application: Apply Now

You can book an apt with our team to learn more: Book Time

Nada funds Home Equity Agreements on a range of residential property types across eligible states. Here's what qualifies:

Eligible property types:

• Single-family homes
• Townhomes
• Planned Unit Developments (PUDs)
• Site condominiums
• Multi-family properties (up to 4 units)

Eligible occupancy types:

• Primary residences
• Secondary/vacation homes
• Investment properties

Additional property requirements:

• Located in an eligible state (AZ, CA, AR, CO, FL, GA, KS, LA, MI, OK, OR, PA, WA)
• Appraised value of $175,000 or more
• 20 acres or less

Not eligible:

• Traditional condos, co-ops, or condotels
• Mobile or manufactured homes
• Timeshares
• Properties zoned for commercial or agricultural use

Not sure if your property qualifies? Apply now for a free estimate or book time with our team.

Nada conducts a soft credit pull during the application process, which is a straightforward check that does not affect your credit score.

In certain situations, a hard credit inquiry may be necessary; however, Nada always seeks your consent before accessing your credit profile.

It’s important to note that Home Equity Agreements are not classified as credit products, and we require a minimum FICO score of 500, as we evaluate the homeowner as an investment partner.

Nada is currently making investments up to $500,000, not to exceed 75% of the total home value.

Nada does not dictate how you use your funds.

This flexibility allows you to make financial decisions that best suit your personal circumstances and goals. Whether you choose to pay down high-interest debt, which can relieve financial pressure and improve your credit score, or undertake renovations to increase the value and comfort of your home, the choice is entirely yours. Additionally, you might consider using your unlocked home equity to invest in opportunities that can yield long-term benefits, such as starting a business or funding your education.

The possibilities are endless, empowering you to tailor your financial strategy to align with your aspirations and needs.

There are no upfront out-of-pocket costs to enter a Nada Home Equity Agreement. All fees are deducted from your cash investment at closing — meaning you receive your funds minus any applicable closing costs.

In general, closing costs total 4–7% of the HEA amount and vary based on the complexity, location, and size of the investment. All fees are fully disclosed prior to funding. Here's what's typically included:

• Title and Escrow: $475 – $600
• Property Inspection: $530 – $800
• Home Valuation (AVM): $50 – $120
• Notary Fee: $75 – $250
• Recording Fees: $90 – $400 (varies by state/county)
• Underwriting Fee: 1% – 3% of HEA amount
• Processing Fee: $595 – $795
• Origination Fee: 3% – 5%

Every scenario is different. For a personalized estimate, apply now or schedule a call with our team.

You do.

You continue to own your home, control your property, and enjoy all of the benefits of being a homeowner, such as building equity, having a stable living environment, and the freedom to personalize your space.

This means you can make decisions about renovations, maintenance, and even the sale of your property without needing approval from anyone else. It's important to note that while you maintain full ownership and control, Nada operates as a co-investor in your home. This means that Nada provides financial support, allowing you to access your home's value without taking on additional debt. However, Nada is not considered an owner in the traditional sense and does not possess rights of occupancy.

You retain the right to live in, manage, and enjoy your home fully, while benefiting from the partnership with Nada as a means of leveraging your investment and enhancing your financial flexibility.

Yes.

Nada’s Home Equity Agreements (HEAs) are designed to work alongside your existing traditional mortgage loans without causing any disruption. Your current mortgage remains in place and keeps its existing rate and terms. Nada records a separate lien behind your mortgage, similar to how a HELOC or second mortgage is recorded.

No.

When you close a Home Equity Agreement (HEA) with Nada, our percentage of equity ownership will never increase. The nature of our HEA is that we share in your home appreciation. If our equity percentage is 20%, then for every dollar that your home increases in value, you earn 80 cents in equity, and Nada earns 20 cents in equity. You will continue to earn equity in your home, (as long as your home appreciates), while you have an HEA.

Home valuations are determined by using 3rd party automated tools, which analyze various factors such as recent sales of comparable properties, market trends, and property characteristics to provide an estimated value.

These automated valuation models (AVMs) leverage extensive databases and algorithms to offer quick and cost-effective assessments of property worth. However, in certain situations where a more precise valuation is required—such as for a mortgage refinance, or when significant renovations have occurred—clients may opt to pay for appraisals through a 3rd party appraisal management company.

This option offers a comprehensive evaluation conducted by a licensed appraiser who inspects the property firsthand, ensuring a thorough analysis that takes into account not only the numerical data but also the condition of the property and its unique attributes.

Your payoff amount is made up of two parts: Nada's original investment plus Nada's share of your home's appreciation over the life of the agreement.

Here's a real example of how that works:

• Home value at funding: $500,000
• Nada's investment: $100,000
• Nada's shared appreciation percentage: 20%

At payoff, let's say your home is now worth $650,000. That's $150,000 in appreciation. Nada's 20% share of that appreciation comes to $30,000.

So your total payoff would be:

• Original investment: $100,000
• Nada's appreciation share: $30,000 (20% of $150,000)
• Total payoff: $130,000

You keep the remaining $520,000 in equity — that's 80% of the appreciation plus your original home value, minus the payoff.

It's worth noting that Nada's percentage never increases over the life of the agreement. You always know exactly what share of appreciation you've agreed to, from day one.

Payoff your HEA at anytime with no pre-payment penalty.

Currently there are 3 ways to pay Nada’s lien off:

1. Refinance into a traditional mortgage.

2. Payoff the Home Equity Agreement (HEA) in cash, either by selling the home or with cash on hand.

3. Obtain a new HEA with another 10-year term.

Our HEA contracts are 10 year options, so homeowners have a full 10 years to buy back their equity shares. The updated value of the HEA is determined by a 3rd party market valuation at the time of close. Nada offers discounted mortgage and in some locations real estate services to current HEA clients.

Watch this short video for more information: Nada Payoffs

For assistance with refinancing, selling or payoff information, please email hello@nada.co

No.

Nada's Home Equity Agreements have no prepayment penalties. you can sell your home or buy out the agreement at any time without extra fees.

The Nada Home Equity Agreement (HEA) contracts are structured to remain valid for a duration of 10 years, providing homeowners with a unique opportunity to leverage their property's value.

During this period, homeowners have the flexibility to choose to buy back the equity they have shared at the current market pricing. This means that at any time over the course of the decade, you can decide to reclaim your equity stake, allowing you to benefit from any potential appreciation in your home's value. This feature not only empowers you to take control of your financial investment but also offers a strategic option for managing your home equity in response to changing market conditions.

Whether you choose to exercise this option early on or wait until closer to the end of the agreement, the decision ultimately rests in your hands, ensuring you have the ability to adapt to your financial needs as they evolve.

Funds from a home sale will pay off the Home Equity Agreement in full.

Ordering a payoff on an HEA is just like a mortgage and would be handled by the Title or Mortgage Company at closing. The funds from the sale are used to satisfy the contract and typically homeowners have no out of pocket expense. By Design, the equity in your home covers the contract cost.

There are 3 options at the end of the 10-year term and we will help you find out which options you qualify for and which ones make sense for your situation. You can sell the home, refinance the home or obtain a new Home Equity Agreement with another 10-year option.

The Home Equity Agreement is secured by a second lien and it is the understanding by Nada that this should not be taxable event at time of origination, and there should be typical real estate capital gains tax treatment when the agreement ends.

Nada and its representatives are not tax advisors and do not give tax advice. We do not make any representations or warranties concerning tax matters or the tax treatment of payments made, or obligations owed under the Homeshare Agreement. Since each homeowner’s tax situation is unique, we recommend that you consult with and rely on the advice provided by your tax advisor, not Nada, for a full explanation of the tax impact of the Homeshare Agreement.

Please contact hello@nada.co if you have further questions.

The maximum annual cost of your Homeshare, expressed as a percentage of the investment return, from the beginning to the end of the arrangement. This limit is subject to underwriting considerations and capped at 19.99% or the maximum allowed in your state, whichever is lower.

The exchange rate determines how much of your home's future value is exchanged for the cash you receive today. Nada's standard exchange rate starts at 1.85.

For example, if you access 10% of your home's value, the 1.85 exchange rate means Nada would be entitled to 18.5% of your home's future value when the agreement ends - or 19.99%, if the ACL applies, whichever is less.

The Nada Team is primarily located in Dallas, Texas and available from 10am-6pm Monday- Friday.

You can email us at any time via hello@nada.co and we will reply at the next available time.

You can book an apt with one of our representatives here: Book Time