According to the Wall Street Journal, a new type of home  financing has come to town. And you don’t need equity to get it. It works this way: An investment company advances you funds–10 to 15% of the current value of your house. You make no payments. You have use of the money until you sell your home. Then, the finance company gets half of your equity. Some of them require that you pay back the funds you were advanced, others do not.

All of them require that you maintain and pay your taxes on the property, and that you don’t sell for a minimum number of years without paying a stiff penalty. In addition, you cannot refinance or take on additional home equity debt without their approval. However, if your home doesn’t increase in value you are not penalized and in some cases won’t even have to pay the loan back!

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