HEA vs. HELOC: an honest comparison from someone who offers both.

What each is

HELOC: a loan. A revolving line secured as a second lien, with payments on what you draw. Your first mortgage and its rate are untouched. The 5-Day HELOC has no appraisal appointment up to $1M, no tax returns, and funds in as little as 5 business days.
HEA (also called a home equity investment, HEI, or equity-sharing agreement): not a loan. It pays a lump sum for a share of your home's future value, settled at a sale, a refinance, or a buyout. There are no monthly payments and no interest — but it isn't free. The cost is the share of appreciation you give up at exit.

Side by side

What it is: HELOC (the 5-Day HELOC)A loan; revolving credit line, second lien; HEA (home equity agreement)Not a loan; cash for a share of future home value
Monthly payment: HELOC (the 5-Day HELOC)Yes, on what you draw; HEA (home equity agreement)None; settled at sale, refinance, or buyout
Credit floor: HELOC (the 5-Day HELOC)620 (a hard floor); no income verification option at 680+; HEA (home equity agreement)Accepted from the 500s
Future appreciation: HELOC (the 5-Day HELOC)100% stays yours; HEA (home equity agreement)The provider takes an agreed share at exit
Amounts: HELOC (the 5-Day HELOC)$50,000 – $5,000,000; HEA (home equity agreement)Up to $600,000
Max leverage: HELOC (the 5-Day HELOC)Up to 90% CLTV (80% in Texas); HEA (home equity agreement)By credit band: 60% (500–539), 65% (540–579), 75% (580+) combined LTV
Upfront costs: HELOC (the 5-Day HELOC)Program-dependent; quoted with the scenario; HEA (home equity agreement)4.99% origination + about $2,500 title costs
Income documentation: HELOC (the 5-Day HELOC)No tax returns; stated-income option at 680+; HEA (home equity agreement)Light; income docs are not the gatekeeper
Speed: HELOC (the 5-Day HELOC)As little as 5 business days (12-day minimum in Texas); HEA (home equity agreement)Weeks; typical for the product
Where offered: HELOC (the 5-Day HELOC)The states Joshua is licensed in; HEA (home equity agreement)12 states: Arizona, California, Colorado, Florida, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Virginia, and Washington
Transaction type: HELOC (the 5-Day HELOC)A home you already own; HEA (home equity agreement)A home you already own

	HELOC (the 5-Day HELOC)	HEA (home equity agreement)
What it is	A loan; revolving credit line, second lien	Not a loan; cash for a share of future home value
Monthly payment	Yes, on what you draw	None; settled at sale, refinance, or buyout
Credit floor	620 (a hard floor); no income verification option at 680+	Accepted from the 500s
Future appreciation	100% stays yours	The provider takes an agreed share at exit
Amounts	$50,000 – $5,000,000	Up to $600,000
Max leverage	Up to 90% CLTV (80% in Texas)	By credit band: 60% (500–539), 65% (540–579), 75% (580+) combined LTV
Upfront costs	Program-dependent; quoted with the scenario	4.99% origination + about $2,500 title costs
Income documentation	No tax returns; stated-income option at 680+	Light; income docs are not the gatekeeper
Speed	As little as 5 business days (12-day minimum in Texas)	Weeks; typical for the product
Where offered	The states Joshua is licensed in	12 states: Arizona, California, Colorado, Florida, Nevada, Ohio, Oregon, Pennsylvania, Tennessee, Utah, Virginia, and Washington
Transaction type	A home you already own	A home you already own

The honest trade-off

A HELOC costs interest, and needs the credit and the capacity for a payment. An HEA has no monthly cost and tolerates weak credit. With strong appreciation, the HEA's exit cost can exceed what the interest would have been.

With bad credit

The HEA accepts credit from the 500s because there is no payment to underwrite
Combined leverage by band: 60% at 500–539, 65% at 540–579, 75% at 580+
Below 620 on a primary-home refinance in an HEA state, the HEA is usually the first call
If you owe 40% of the home's value or less, it's the go-to answer for almost any goal

How the routing works

620+ and the payment fits: HELOC
Below 620 in an HEA state: HEA
Income documentation is the blocker but credit is strong: the no income verification HELOC (680+, lines of $150,000 or more) before either
No monthly payment is a hard requirement — a fixed income, or tight retirement cash flow: HEA, with the trade-off explained in writing
Age 62 or older: a reverse mortgage belongs in the comparison

Questions

Good to know.

Which is cheaper?+

It depends on appreciation. A HELOC costs interest on what you draw. An HEA costs the provider's share at exit, plus 4.99% origination and about $2,500 in title costs up front. The HEA is modest in a flat market and can exceed HELOC interest in a strongly appreciating one. The share is set per offer.

Can I get an HEA with bad credit?+

Yes, from the 500s, with maximum combined leverage of 60%, 65%, or 75% by credit band, in 12 states.

Is an HEA the same as an HEI?+

Yes. It's also called an equity-sharing agreement.

Does an HEA have payments or interest?+

Neither. There is a cost at exit instead.

Can I buy out an HEA early, or switch to a HELOC later?+

Yes. It settles at a sale, a refinance, or a buyout, and refinancing into a HELOC or cash-out loan once credit recovers is a common exit.

Who should choose the HELOC?+

Anyone at 620+ who can carry a payment: $50,000 to $5,000,000, up to 90% combined loan-to-value, in as little as 5 business days, with no appraisal appointment up to $1M and no tax returns.