Should I get a home equity agreement? If your answer is yes, here are the best companies

A home equity agreement (HEA) — also known as home equity sharing or home equity investment — can be a strategic tool for homeowners to tap into their home equity , especially if they have poor or bad credit and lack the liquidity to make a monthly payment. Here's how it works: The homeowner sells a portion of their equity to a home equity investment company for cash. In exchange, the investment company receives what it paid plus a portion of the home's future appreciated value , calculated at the end of the term or when the homeowner sells the house, whichever comes first. But it's not the best option for everyone: While there are no monthly payments and no interest on a HEA, you must pay the full amount — plus a risk assessment fee that can be as much as 30% of your home's appreciation — all at once. Like a home equity loan or line of credit lender, the investment company will have a claim to your house if you fail to do so, and can force you into foreclosure. So how do you determine if an HEA is right for you? CNBC Select will walk you through that decision and recommend the best companies. You can leverage equity to access cash through home equity sharing or a home equity loan. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. …