We get it. This can all be a bit confusing.

A Home Equity Investment (HEI) is not a traditional loan. It is an agreement between a homeowner and an investment company (Leap). You receive a lump sum cash payment in exchange for a portion of your existing home’s equity.

Yes.

Home Equity Investments represent an equity investment in the property. In contrast, reverse mortgages represent an increasing debt obligation and require the homeowner to both live in the home and be at least 62 years old. Some key differences:

In some cases, Leap may be able to issue an HEA on a property where there is a reverse mortgage, but not on a property where there is an existing Home Equity Investment. Feel free to contact us to discuss your specific situation.

To qualify for a Leap Home Equity Investment, homeowners must have at least 30% of equity in their home. The mortgage(s) on the home cannot exceed 70% of the total valuation of the home.

Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland, Michigan, Missouri, North Carolina, New Jersey, New Mexico, Nevada, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin.

All single family residences (SFRs) are eligible for Leap home equity investments. This includes primary and secondary residences, as well as investment properties and vacation homes.

Through a process that uses an Automated Valuation Model (AVM). However, either the homeowner or the investor may request a traditional appraisal to be paid by the requestors.

If your home value drops below the original appraised value, Leap shares in the loss. In some cases, you may pay back less than what you received from Leap.

Your Home Equity Investment comes with a 10-year term (up to 30 years for Leap Relax), but you have the flexibility to repay Leap any time you want within that term period. You can repay Leap in the following ways:

• A home sale
• A HELOC or cash-out refinance
• Another source of funds

You have the flexibility to buy Leap out at any time during your term. There’s no lockout or prepayment penalty. Leap is with you for as long — or as short — as you’d like.

Correct. There are no monthly payments, which makes a Home Equity Investment a great financing solution for homeowners looking to improve cash flow. Instead, homeowners pay back in one lump sum any time they choose before the end of their investment term, typically when they refinance or sell.

Depending on the type of agreement you enter into and your particular financial profile, there are typically closing costs and certain administrative fees. Please refer to our Disclosures which outline the elements of a Home Equity Investment and how the fees are calculated. All final costs including the re-payment of the Investment are fully detailed in the final Closing Documents.

There are no restrictions on how you can use Leap funds, with the exception of our Leap Restore program. Leap Restore is designed to increase homeowners’ financial situation. Consequently, approximately 95% of the Leap Restore sum payment is earmarked for debt repayment (improving the homeowner’s debt-to-income ratio) thereby increasing the homeowner’s credit score.

In addition to collecting certain fees to cover administrative costs, HEI investors such as Leap make money as the home’s value appreciates over the term of the HEI agreement. As the home appreciates in value, the investor’s equity stake in the home appreciates along with the homeowner’s.

Leap’s technology is a data-driven solution that leverages Artificial Intelligence (AI) and Machine Learning (ML) to assess a borrower’s credit risk and resiliency, analyzing a borrower’s ability and willingness to pay. Conversely, traditional credit scoring methods inaccurately classify millions of borrowers as non-prime, thereby excluding these borrowers from many consumer finance products. Our technology corrects this.