At a glance
| How you repay | Share of your home's future value, up to 2.25× the share you received |
|---|---|
| Typical cost | 13.7% a year |
| Cost cap | 12.99% a year or 14.99%, by program |
| Term | No scheduled end date |
See every CHEIFS termMultiplier, cash available, limits, fees, and credit
| What they call it | Home equity investment agreement |
|---|---|
| How you repay | Share of your home's future value, up to 2.25× the share you received |
| Multiplier | 2.25× of total value |
| Cash available | $70K to $2M |
| Max share of home value | Not published |
| Equity you must keep | 35% or 50% after funding, by program |
| Fee | 1.99% or 2.99%, by program |
| Cost cap | 12.99% a year or 14.99%, by program |
| Term | No scheduled end date |
| Minimum credit score | 680 |
| Shares losses if value falls | Yes, you owe a share of a lower value |
How CHEIFS's agreement works
CHEIFS pays a lump sum in exchange for a share of your home's future value, payable at a settlement event.
Its own calculator shows the share as 2.25× the share of value you receive: $70,000 on a $950,000 home (7.37%) for up to 16.58% of its future value.
What you repay is capped at 12.99% or 14.99% a year on the investment, compounded yearly, depending on the program. You pay the share or the cap amount, whichever is less, and in many cases the cap sets the price.
The origination fee is 1.99% or 2.99%, plus closing costs. It needs a 680 credit score and allows combined loan-to-value up to 50% or 65% by program, for $70,000 to $2 million. There's no scheduled end date.
What CHEIFS costs
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, settled after 7 years), you would net $95,510 after fees and settle for $235,115: an effective cost of 13.7% a year (the cost cap applies).
These numbers use a typical example. Your offer's numbers will differ.
See the cost at every growth rate and hold periodEffective annual cost from 0% to 8% growth, settled after 3 to 10 years
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. Rows are yearly home appreciation; columns are when you settle.
| Growth | 3 years | 5 years | 7 years | 10 years |
|---|---|---|---|---|
| 0% a year | 14.7% | 14.0% | 13.0% | 8.9% |
| 2% a year | 14.7% | 14.0% | 13.7% | 11.1% |
| 4% a year | 14.7% | 14.0% | 13.7% | 13.3% |
| 6% a year | 14.7% | 14.0% | 13.7% | 13.5% |
| 8% a year | 14.7% | 14.0% | 13.7% | 13.5% |
Yearly cost is measured on the cash you actually receive, after the provider's fee and about $1,500 of closing costs. Measured on the full investment instead, it's lower: in our standard example ($100,000 on a $750,000 home, 4% yearly growth, 7 years), Hometap is 13.1% a year instead of 14.1%.
Pros and cons
Pros
- The lowest published cost caps we track
- No scheduled end date
- Up to $2 million
- Works for second and vacation homes
Cons
- $70,000 minimum
- 680 minimum credit score, the highest we track
- Keeps more of your equity in reserve (combined loan-to-value up to 50% or 65%)
What CHEIFS customers say
CFPB complaints: none found under a CHEIFS name in the federal complaint database.
Customer reviews: we didn't find CHEIFS on the major review sites.
How to read reviews of any HEI company. Star ratings tend to reflect the application and funding experience. The costly part comes years later, at settlement: across the six providers, "trouble during the payment process" accounts for 37 of 131 CFPB complaints, and the CFPB has reported consumers surprised by what they had to repay. Read the oldest reviews and the complaints, not just the star rating.
Who CHEIFS fits
Worth a look if: You need $70,000 or more, have strong credit, and value a firm ceiling on cost.
Look elsewhere if: You need less than $70,000, your credit is below 680, or you carry a large mortgage.
Where CHEIFS is available
21 states and Washington, DC, according to its own availability page. Availability can vary by county.
Arizona, California, Delaware, District of Columbia, Florida, Idaho, Indiana, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin, Wyoming
Source: CHEIFS licensing disclosures.
Regulatory record
We haven't found a state enforcement action or court case involving CHEIFS in our review of primary sources.
Alternatives to CHEIFS
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. Highlighted: cheaper than CHEIFS in that scenario.
| Provider | Typical: 4% growth, 7 years | Flat prices: 0%, 7 years | Fast growth: 8%, 7 years | Early sale: 4%, 3 years |
|---|---|---|---|---|
| CHEIFS | 13.7% | 13.0% | 13.7% | 14.7% |
| Hometap | 14.1% | 9.7% | 18.5% | 22.7% |
| Point | 14.3% | 8.3% | 18.9% | 20.2% |
| Unison | 14.7% | 3.5% | 23.1% | 21.6% |
| Unlock | 15.9% | 11.5% | 20.4% | 22.6% |
| Splitero | 15.9% | 11.5% | 20.4% | 22.3% |
Computed from each provider's published terms.
Yearly cost is measured on the cash you actually receive, after the provider's fee and about $1,500 of closing costs. Measured on the full investment instead, it's lower: in our standard example ($100,000 on a $750,000 home, 4% yearly growth, 7 years), Hometap is 13.1% a year instead of 14.1%.
In the typical case, the lowest-cost alternative is Hometap at 14.1% a year, versus 13.7% for CHEIFS. If your home grows fast or you sell early, the ranking can change.
When to pick an alternative instead
- Hometap: costs less if prices stay flat (9.7% vs 13.0% a year); publishes a lower credit minimum (585 vs 680); allows more leverage (75% vs 65%); serves more states (27 vs 22). CHEIFS vs Hometap
- Point: costs less if prices stay flat (8.3% vs 13.0% a year); publishes a lower credit minimum (500 vs 680); allows more leverage (an assumed 80% vs 65%); serves more states (32 vs 22). CHEIFS vs Point
- Unison: costs less if prices stay flat (3.5% vs 13.0% a year); allows more leverage (an assumed 80% vs 65%); serves more states (23 vs 22). CHEIFS vs Unison
- Unlock: costs less if prices stay flat (11.5% vs 13.0% a year); publishes a lower credit minimum (500 vs 680); allows more leverage (70% vs 65%); serves more states (26 vs 22). CHEIFS vs Unlock
- Splitero: costs less if prices stay flat (11.5% vs 13.0% a year); publishes a lower credit minimum (500 vs 680); allows more leverage (an assumed 80% vs 65%). CHEIFS vs Splitero
A HELOC, home equity loan, cash-out refinance, or reverse mortgage can also cost less if you qualify. See every option compared.
More on CHEIFS: Is CHEIFS legit?
Sources
CHEIFS: calculator, payoff table, and comparison · CHEIFS: disclosures
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