Question 1

What is an equity appreciation loan?

Accepted Answer

It's a loan structured around your home's projected equity growth. Terms are shaped by where your value is headed, not just its current state.

Question 2

Does my Morgan Hill home need existing equity?

Accepted Answer

Yes. Lenders need a starting equity position to evaluate upside. More current equity typically means better terms.

Question 3

How does this differ from a HELOC?

Accepted Answer

A HELOC is a revolving credit line against current equity. Appreciation-linked products price terms based on projected future value.

Question 4

Can I use this to access cash?

Accepted Answer

Depends on the specific product structure. Some allow cash access; others modify your rate or payment terms instead.

Question 5

Is this considered a non-QM loan?

Accepted Answer

Not necessarily. Product structures vary. Some equity appreciation loans meet QM standards; others do not.

Question 6

Why use a broker for this loan type?

Accepted Answer

These products aren't at retail banks. A broker with wholesale access can shop multiple lenders offering equity-linked structures.

Equity Appreciation Loans in Morgan Hill, CA