Home Equity Investment (HEI) notification
Please read this disclosure carefully before proceeding with your application. It explains how a Home Equity Investment differs from a traditional loan.
Important consumer disclosure
This is not a mortgage, loan, or debt instrument.
S.O.S. Loans, Inc. (NMLS ID: 2222125) acts as your broker to secure a Home Equity Investment (HEI) through our wholesale investment partners (such as Splitero).
Unlike a traditional first mortgage, Home Equity Line of Credit (HELOC), second mortgage, or reverse mortgage, an HEI is not a loan. It is structured as an equity-sharing transaction. By entering into this agreement, you are selling a contract option linked to the future value of your residential property.
Key differences and disclosures
No monthly payments
There are no monthly principal or interest payments required during the term of this agreement.
No interest rate (APR)
Because this is not a loan, there is no annual percentage rate (APR) or interest accrued.
Future value share
In exchange for an upfront cash payment, you agree to pay the investor a specified percentage of your home's future value (or its future appreciation).
Recorded lien
To secure their investment, the investor will record a Memorandum of Option (or a Deed of Trust securing performance of the option agreement) against your property's title. This constitutes a recorded lien on your home.
Settlement and payoff
You must settle this agreement at the end of the term (typically 10 to 30 years). Settlement is triggered by the sale of the home, a transfer of title, a refinance of senior debt, or a voluntary cash buyout.
Appreciation risk
If your home appreciates significantly, the final settlement payoff amount could be substantially higher than the cash you initially received.
Broker-investor relationship & compensation
S.O.S. Loans, Inc. (NMLS ID: 2222125) is a licensed California mortgage broker acting solely as a referring broker — it is not the investor funding this transaction. Splitero is the actual investor evaluating, approving, and funding your HEI. S.O.S. Loans, Inc. receives a referral fee directly from Splitero upon the successful closing of your transaction. This fee is paid entirely by Splitero and does not increase your costs, alter your terms, or change the amount you pay or receive for the investment.
By signing below, you acknowledge that you have read and understand that this transaction is a real estate investment agreement, not a consumer loan.
S.O.S. Loans, Inc. is licensed by the California Department of Financial Protection and Innovation (DFPI) under California Financing Law License #603-F428, NMLS ID #2222125. HEI contracts are brokered to and executed by our registered partner, Splitero Funding, Inc. (NMLS ID #2327455). S.O.S. Loans, Inc. and Splitero do not provide tax, legal, or accounting advice. Consult an independent CPA and legal counsel before executing a shared appreciation equity contract.