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NatEquity compares senior home equity options for borrowers 62 and older
The analysis contrasts HECMs, senior HELOCs, HEIs and its HouseMoney product on repayment timing, costs, and shared-equity legal and regulatory risks.
HousingWire reports that California-based lender NatEquity Inc. released an analysis comparing senior home equity products for homeowners age 62 and older, covering HECMs, senior HELOCs, home equity investments, and its proprietary HouseMoney offering.
The comparison looks at differences in repayment timing, cost structures, securitization and servicing models, as well as emerging legal and regulatory risks tied to shared equity arrangements.
HousingWire also notes that NatEquity frames HECMs as the most established option, introduced in the late 1980s through a program administered by the U.S. Department of Housing and Urban Development. The analysis highlights that shared-appreciation products can trade future home value growth for access to cash, while senior HELOCs and HEIs developed more broadly after the 2008 financial crisis as lenders sought alternatives to federally insured programs.
According to NatEquity’s analysis, HECMs generally include interest rate charges and annual mortgage insurance premiums, while senior HELOCs carry variable interest costs. The outlet also cites NatEquity CEO Peter Mazonas saying interest on senior HELOCs can begin accumulating from the start, potentially reducing the equity available to borrowers and heirs over time.