Explore answers to our most frequently-asked questions


What is a home equity investment?

In a HomePace co-investment, we invest with you in your home, you control the home, and we both make or lose money depending on whether the home increases or decreases in value.

As a homeowner, bringing on an investor like HomePace gives you the benefit of receiving funds up front, but it also decreases the risk of owning an asset, since we’ll share the losses with you if the home depreciates. It also means that you never have to maintain savings to pay us back – the home will pay us back when you sell.

Where does the money for HomePace investments come from?

HomePace raises the capital we give to homeowners and homebuyers from institutional investors. Those investors typically manage portfolios, and seek new ways to invest to generate returns for their own clients. Institutions such as family offices, investment firms, endowments, and pension plans benefit from diversifying across classes of real estate, but they often don’t have the resources to select and invest directly into single-family homes themselves.

HomePace helps institutions deploy their investment capital to you and other homeowners in a scalable way, by building technology that enables efficient investment decision-making and improved customer education and service. As a result, we open up a new channel for everyday homebuyers and homeowners to access investment capital that is traditionally only available to very high net worth investors or other institutions.

Where does HomePace invest?

We currently accept homes in the following states, provided the home meets our investment criteria:

  • Arizona
  • Colorado
  • Illinois
  • Ohio
  • Minnesota
  • North Carolina
  • Tennessee
  • Utah
  • Washington

HomePace invests in homes based on a range of criteria, including location, price, expectations of future appreciation, and other factors. Not all homes in our eligible states may qualify. Contact us at support@homepace.com to see if your current or future home qualifies.

Is HomePace the same thing as a mortgage?

No, a mortgage is debt; HomePace is an equity investment. With debt, you have to pay the money back in monthly installments out of pocket. With HomePace, the home pays us back when you choose to sell.

A mortgage is a debt-based agreement that you have with a bank or other financial institution. They loan you money to purchase your home, and you agree to to pay back the loan in monthly installments, plus interest. You are responsible for making these payments every month whether your home’s value goes up or down.

HomePace’s co-investment contract is an equity-based agreement. Like a bank, we give you funds up front. But, instead of paying us back out of pocket every month with interest, we receive a pre-agreed percentage of the gains (or losses) when you decide to sell. If the home increases in value, we both make money. If you sell for less than the initial value, we will share in a portion of the loss as well.

A HomePace co-investment can be used alongside a mortgage. Many HomePace clients already have a mortgage before receiving a HomePace co-investment, or use HomePace and a mortgage to purchase a home.

How does HomePace make money?

HomePace receives a one-time origination fee from you once a contract is signed. The fee is based on the value HomePace invests, and is paid out of the money we provide you, so there is no “out-of-pocket” payment.

HomePace also receives management fees from our institutional investors who compensate us for finding homes and investing their capital in areas with good long-term growth potential.

Do you own a percentage of the equity I built by paying off my mortgage?

The equity you build from your monthly payments is 100% yours. HomePace shares in the change in value of your home, not on the principal you’ve paid down.

Does HomePace invest in rental or investment properties?

We only invest in owner-occupied, single family homes used as the primary residence of the borrower. This means the home must be intended as your primary residence, and that you do not take on tenants or rent out the home.

Does HomePace go on title?

After you sign your contract, HomePace will record a deed of trust (or equivalent document for your state) on title. HomePace becomes a secondary lien holder on your home until you sell or buy out your contract.  You and any other homeowners will be recorded as the homeowner.

Application Process and Receiving your Funds

How do I know if I’m eligible for a HomePace contract?

Please contact us at support@homepace.com if you and the home you own or intend to buy meet the below criteria:

  • The home is or will be your primary residence
  • The home is a single family home
  • The home is in one of our eligible states 
  • Your credit score is 630 or higher

Once you decide to move forward, we’ll collect some additional information about your financial situation.

How do you determine if my home is eligible?

HomePace invests in homes based on a range of criteria, including location, price, expectations of future appreciation, and other factors. We also conduct a home inspection prior to finalizing contract terms. For homebuyers, we can use inspection and appraisals conducted as part of the home purchase to reduce costs.

How much am I eligible to receive from HomePace?

We pay up to 15% of the current value of the home you own or are purchasing. You will receive the full amount in a single upfront payment, net of any upfront fees, once you sign the contract.

The maximum total dollar amount we pay can vary. If you’re interested, contact us at support@homepace.com to learn more about how much you’re eligible to receive.

How do you determine the percentage share split between HomePace and me?

Factors like the size of the upfront payment you are seeking from HomePace, your credit score, the amount of equity you have in your home, and the real estate market in your area may all determine how we calculate share ownership. The split is set before you sign the HomePace contract and does not change.

Contact our team at support@homepace.com to learn more about pricing and contract terms.

I’m buying a home. How does HomePace impact my financing through a lender?

HomePace partners with lenders who understand HomePace’s product, and our service teams coordinate directly on your behalf wherever possible. In many cases, HomePace is able to streamline the lending process by reducing your LTV (loan to value) and DTI (debt to income) ratios, because we help you bring more cash to the table and lower your monthly payments.

Our team will connect you with a lender that meets your needs and is familiar with our product if you decide to move forward.  We are happy to work with any lender, but we cannot guarantee that all lenders will accept funds from HomePace in the same way.

What are the fees for a HomePace investment?

There are typically no out-of-pocket expenses up front for a homeowner or homebuyer. The cost of an independent appraisal or inspection and a processing fee of 3%-4% of the investment amount are deducted from the proceeds that HomePace provides to you (well below the typical 6% fee charged by real estate agents when you sell your home). 

Because this is an investment, not a loan, there is no interest or monthly payments. During the term of your agreement with HomePace, you may pay some service fees when certain actions like appraisals are requested. 

This cost overview is provided for informational purposes only.  Our clients receive a full, transparent cost analysis prior to making the decision to enter into a HomePace co-investment agreement.

Financial Details

I’m buying a home. How do I compare HomePace with mortgage insurance?

Comparing debt and equity products can be a challenge. The best solution often comes down to your personal goals and financial situation. If you want to talk to someone to learn more, contact us at support@homepace.com.

Private Mortgage Insurance (PMI)

Most lenders require PMI when a homebuyer makes a down payment of less than 20% of the home’s purchase price. PMI can add anywhere between 0.5%-2.00% to your interest rate, which increases your monthly payment.

Borrower-paid mortgage insurance typically has a higher rate at first, but it will automatically drop off once you’ve paid off 22% of the value of your loan. This can take about 10 years, depending on the borrower. Lender-paid mortgage insurance typically adds less to your interest rate, but it does not fall off over time – you will pay the increased rate through the life of your loan.

PMI increases your purchasing power by allowing you to put less money down. However, it comes with higher monthly payments over time.


Equity Co-investments (HomePace) 

Using a HomePace co-investment increases your purchasing power, but it does so without the increase in monthly payments that come with PMI. 

HomePace is an investor, and we invest funds into homes. We buy a portion of the equity in your home from you, giving you cash up front for your down payment. We are paid once you sell the home. We take the risk, alongside you, that we may lose money if the home doesn’t increase in value. 

We are similar to a loan or debt product in that you get cash up front for your down payment, but you aren’t expected to make payments out of pocket, unless you wish to buy HomePace’s contract out before selling the home. We get paid when your house sells, and you get the benefit of more cash down and lower monthly mortgage payments.

HomePace is a complement to your mortgage, by allowing you to access capital in a different way. You increase your purchasing power, but keep your debts and monthly payments to more affordable levels. 

For some people, the upfront cash allows you to avoid putting all of your savings into your down payment so you have cash on hand for other needs such as unexpected expenses, other financial goals like retirement, or paying for a college education.

How do I compare HomePace with a HELOC (Home Equity Line of Credit) or reverse mortgage?

Comparing debt and equity products can be a challenge. The best product for your needs comes down to your personal goals and financial situation. If you want to speak with someone to learn more, contact us at support@homepace.com.

HomePace may be an ideal option if: 

  • You do not want to increase your debt obligations each month. 
  • You have already seen appreciation in your home, and you wish to lock in some of those gains without selling your home.
  • You would be very adversely impacted if your home lost value, and you wish to protect yourself from taking on 100% of that risk.

You share a percentage of the gains or losses of your home (when you choose to sell), but you receive cash immediately and don’t have to pay out of pocket to access funds to achieve your financial goals. 

Debt options like a HELOC or Reverse mortgage may be an option if: 

  • You can easily afford the extra principal and interest payments.
  • You meet all traditional lending standards.
  • You treat your primary home as an investment and believe that your home will appreciate more than the broader market.

You commit yourself to payments and substantial interest costs out of pocket, but you will keep 100% of the gains or losses on your home.

What if my home has lost value when I decide to sell?

As a co-investor with you in your home, HomePace will share in a portion of the losses in the home alongside you, as outlined in the contract. 

You have the right to sell your home when you decide to, regardless of its change in value. We recognize that your primary residence is not just a financial investment for you – your needs from your home may change, sometimes unexpectedly, and we understand that needing to move doesn’t always coincide with rising prices.

In the unlikely event that HomePace’s share of the losses at the time of sale exceed the value of our initial investment (the upfront payment we give you), we will waive our right to our share of the home. This means you keep 100% of the proceeds of the sale of the home when it sells. If that happens, you have no obligation to repay us for the upfront funds we provided to you. Those funds are not a loan and are only repaid if the home sells with enough value to share between HomePace and you.

Does a HomePace contract impact my tax situation?

HomePace is not a licensed tax advisor, so we recommend you consult your tax advisor prior to engaging with HomePace. State and personal tax situations you may have could impact tax treatment of the option.

However, for most homebuyers and homeowners, the upfront payment you receive is typically not subject to taxes. When you sell your home, both HomePace and you would pay capital gains tax on the portion of the appreciation we each receive. This reduces your capital gains tax bill if the home’s value has increased at the time of sale.

How can HomePace help me improve diversification?

HomePace gives homeowners the ability to tap into the value of their home, and access cash to support other financial goals without the worry of repayment out of pocket. For some homebuyers, this means that they are able to hold onto a larger portion of savings to invest toward other goals.

By reducing the percentage of your assets tied up in your home, and investing those assets elsewhere, you diversify your total financial picture. This means you might benefit from returns or cash flow from other investments (such as stocks, annuities, or other investment properties), you may have easier access to those returns (cash or stock market returns are easier to tap into than your home equity), and still remain invested in a portion of your home.

How do I know if HomePace is the right financial decision for me?

HomePace wants to help you make the best possible decision for your situation. Our team of client education experts are available to walk you through the product, and answer questions every step of the way. Contact us at support@homepace.com if you’d like to learn more.

We also recommend that you research other options and consult experts such as your financial advisor or lender to ensure you’re getting the best product available for your needs. 

Closing Your Contract

I’m ready to sell my home. What do I do?

Simply contact our operations team at support@homepace.com before listing your home.

After coordinating with our team, you will initiate the sale of the home with your real estate agent directly, as normal. Once the home is sold, we will use the sale price to determine the value of HomePace’s and your share as previously agreed to in your HomePace contract.

HomePace will be paid directly by the title company or escrow agent as part of closing. 

How does HomePace receive funds?

If you sell your home, HomePace will be paid from the proceeds of the sale, directly from escrow. We are listed on title as a lien holder, so the title company will pay HomePace directly per the terms of our contract.

If you choose to buy out your contract, you will pay HomePace directly for the current value of our share of the home.

When do I have to sell my home?

HomePace offers clients a 15-year agreement. After 15 years, you have the option to sell your home, or buy HomePace’s share of the home to close out your contract.

You have the freedom to sell your home at any time during the 15 year term.

What if I want to buy back HomePace’s portion of my home?

You are able to buy out your contract from HomePace at any time during the 15-year term. 

We will work with you to schedule a third-party appraisal of the home. We use the independently-appraised value of your home to calculate the dollar value of HomePace’s and your share of the value of the home based on the percentages previously agreed to in your HomePace contract. You would then pay HomePace directly for our share of the value of the home, closing out the contract.

Contact our team to initiate the process.

What if I want to live in my home for more than 15 years?

If you do not wish to sell your home after the 15-year HomePace contract expires, you have the option of buying out your contract from HomePace. 

In some cases, we may be able to re-engage in a second contract on your home, provided the home and the local real estate market continues to meet our investment criteria and the home has been well-maintained. We assess homes on a case-by-case basis. If you would like to consider this option, please contact us to discuss.

Don’t see your question? Contact us at support@homepace.com.