For homeowners.
Barastone works through the professional handling your project. If your contractor, installer or mortgage professional has introduced you to a Home Equity Agreement, here is what it is and how it works.
There are no monthly payments.
A Final Settlement Amount based on your home's value at that time is due at the end of the Investment Period or upon sale or refinance. In a high-appreciation scenario, this amount may substantially exceed the investment proceeds received.
A Final Settlement Amount will be due at the end of the Investment Period or upon sale or refinance. This is not a grant — the obligation is deferred, not eliminated.
- What is it, exactly?
- A purchase of a partial interest in the future value of your home. Barastone pays you an amount today. In exchange, Barastone has a contractual right to a percentage of your home’s value at settlement, worked out using the Settlement Multiplier written into your agreement.
- Do I still own my home?
- Yes. You keep full ownership and control, and you make every decision about the property. You also remain responsible for property taxes, insurance and maintenance for as long as the agreement runs.
- What goes on my title?
- A security interest is recorded against the property. It is a matter of public record and it may affect your ability to refinance.
- When do I settle, and how much?
- When you sell, when you refinance, or at the end of the Investment Period — and you may choose to settle earlier. The amount is calculated from your home’s value at that time. If your home has appreciated strongly, that amount can be substantially more than you received. The maximum cost is subject to a homeowner protection cap of no more than 20% annualized, regardless of future home value.
- What does it cost?
- The cost is not fixed in advance. It depends on your home’s value at settlement, so in a strongly appreciating market it may exceed a comparable home equity loan or line of credit. Weigh it with your own legal, financial and tax advisers.
The capital provider's downside is limited by equity devaluation provisions and floor calculations. The homeowner bears 100% of property taxes, insurance, and maintenance costs regardless of home value performance.
Barastone does not take applications from homeowners.
A Home Equity Agreement reaches you through the professional handling your project — the remodeler, the ADU builder, the solar installer, the credit union or the lender you are already working with. They introduce you; we do the rest.
Barastone does not advertise to homeowners and does not compete with the businesses that make the introduction. If nobody you are working with is a Barastone partner, ask them about it.