What Is CHEIFS®

HOW IT WORKS

CHEIFS is a non-recourse home equity investment agreement (HEI) that provides debt-free proceeds without interest or monthly payments. Homeowners sell an interest in their home’s future value in exchange for an up-front investment payment, while retaining home ownership and occupancy.

Under the CHEIFS Prime program, for every 1% of the starting appraised home value Cornerstone Financing (“Investor”) invests, it receives an equity position equal to 2.25% of the home’s future value (the “equity share percentage”), subject to an annualized cost cap of 12.99% on the investment payment, compounded annually.

There is no payment obligation to the Investor until a settlement event occurs, such as the homeowner’s death, home sale, or permanent move-out. At that time, the Investor receives an equity share return payment equal to the equity share percentage multiplied by the home’s value when the settlement event occurs, as limited by the annualized cost cap. Other programs available.

Visit CHEIFS.com for program and product details, additional costs and eligibility criteria.

Frequently Asked Questions About Home Equity Investments

1. What is a Home Equity Investment (HEI)?

A home equity investment (HEI) is a financing structure in which a homeowner receives a lump sum of cash today in exchange for granting an investor a contractual right to a portion of the home’s future value. HEI structures vary — some are option agreements or share appreciation only; CHEIFS specifically provides the investor a share of the home’s total future value at settlement.

Unlike a traditional loan:

• There are no required monthly payments to the investor
• There are no traditional interest charges
• The investor’s share is realized when a future settlement event occurs

Settlement events typically include:

• Sale of the home
• Permanent move-out of the home
• Death of the homeowner

Unlike most HEI products, which carry a defined 10–30 year term, CHEIFS has no fixed term — settlement occurs when a qualifying event takes place.

At that time, the investor receives its agreed equity share return based on the home’s value and the structure of the agreement.

Modern HEI structures may include defined return factors or cost caps to provide transparency around future settlement outcomes.

2. Why do homeowners consider HEIs?

The primary appeal of an HEI is liquidity without the monthly payment obligations and income-qualifying requirements of traditional borrowing.

Homeowners may consider HEIs when they want to access equity without:

• refinancing an existing mortgage
• creating required monthly loan payments
• qualifying based on income

This can be particularly relevant for:

• retirees or pre-retirees
• homeowners who are equity-rich but income-constrained
• homeowners seeking planning flexibility

In planning-oriented structures, such as those with no fixed term and a defined cost cap, and modeling tools for professional financial planners, like Wealthy and Wise+™, CHEIFS may be evaluated as part of strategies related to:

• retirement income planning
• long-term care planning
• tax planning strategies such as Roth conversions
• insurance planning

3. What are the drawbacks or risks of HEIs?

Like any financial structure, HEIs involve trade-offs.

The most significant consideration is that the investor participates in the home’s future value. If a home appreciates significantly or the agreement remains in place for a long period, the settlement amount can be materially higher than the original investment payment.

This means the effective cost may be higher than traditional debt for homeowners who could otherwise qualify for low-rate borrowing.

Some modern HEI structures attempt to address this by including:

• defined return factors
• return caps
• early-exit settlement options

These features can help reduce uncertainty around future settlement outcomes.

4. How do HEIs differ from HELOCs or home equity loans?

HEIs are fundamentally different from traditional home-equity debt products.

HELOCs and home equity loans

• require income qualifying
• require monthly payments
• charge interest

HEIs

• do not require monthly payments to the investor
• do not require traditional income qualifying
• settle when a future event occurs

Rather than creating current cash-flow obligations, HEIs shift financial cost and risk into the future.

Because of this structure, transparent pricing and clearly defined return structures are important for informed decision-making.

5. What happens under different housing market scenarios?

Settlement outcomes depend on three primary variables:

• the home’s future value
• the duration of the agreement
• the structure of the investor’s share

In general:

Low appreciation markets

Settlement amounts may remain relatively modest vis-à-vis the initial investment payment.

Moderate appreciation markets

Settlement amounts increase at a higher pace as the investor’s share grows with both time and home value.

Strong appreciation markets

Settlement amounts can increase significantly.

Some HEI structures include cost caps designed to limit long-term settlement obligations even in strong housing markets.

6. Example settlement scenario

Consider a simplified illustration of CHEIFS under the Prime program:

A homeowner with a primary residence valued at $800,000, with no existing mortgage, receives an investment payment of $177,778 (22.22% of appraised value), with a defined 2.25 equity share factor, meaning that Cornerstone Financing receives a 50% equity share in the home’s future value (22.22% x 2.25 = 50%).

If the home appreciates at a rate of 4% a year and the homeowner sells the home 20 years later for $1,752,898, the equity share payable to Cornerstone would be $876,449, or 50% of the home’s gross sales price.

That amount represents an annualized cost of approximately 8.50% on the initial investment payment, compounded annually, over the same 20-year period. This cost also reflects an origination fee of 2.99% of the investment payment. Additional costs apply, including third-party closing costs.

This is for illustration only. Actual amounts will vary according to property characteristics,  homeowner attributes, real estate market conditions, and applicable CHEIFS program rules and pricing, which are subject to change.

7. Who may be a good candidate for an HEI?

HEIs may, depending upon the structure, be appropriate for homeowners who:

• need liquidity but want to avoid new monthly payments
• do not qualify for traditional home-equity debt
• plan to remain in their home long-term
• are evaluating long-term planning strategies

Potential planning uses include:

• retirement income strategies
• long-term care planning
• insurance strategies
• tax planning scenarios

HEIs may be less appropriate for homeowners who:

• expect to sell their home in the near future
• anticipate rapid home appreciation and want to preserve all upside
• prefer the predictability of a traditional, fully amortizing loan repayment structure

8. What risks are often overlooked?

One commonly overlooked risk is settlement shock — when homeowners underestimate how large the settlement amount could become after many years.

Another consideration is reduced participation in home value or appreciation, since part of the future value belongs to the investor.

Some HEIs may also include restrictions on:

• refinancing
• rental use
• property transfers

Understanding the agreement terms and modeling multiple outcomes are important steps before entering into any HEI structure.

9. What alternatives should homeowners compare?

Homeowners evaluating an HEI should also consider other options, including:

• HELOCs
• home equity loans
• cash-out refinancing
• portfolio withdrawals
• downsizing

Each option has different trade-offs related to:

• cost
• flexibility
• tax considerations
• required payments
• qualification requirements

Comparing these options side-by-side can help determine which structure best aligns with long-term financial goals.

10. Final thoughts

While the suitability of a home equity investment depends on individual circumstances, CHEIFS may be suited for long‑term financial planning because it has no fixed term in years, giving homeowners added flexibility over an HEI with a fixed term of 10 years, for example.

Homeowners should consider how:

• time
• home value appreciation
• income constraints
• contractual terms

may affect future settlement outcomes.

Cornerstone Financing believes in transparency and predictability. That’s why CHEIFS has an annualized cost cap and a maximum equity share percentage.

Check out the CHEIFS calculator on CHEIFS.com today.  Plus, financial advisors can use Wealthy and Wise+™ by InsMark^® to model different planning scenarios using CHEIFS.

_{This material is provided for informational and promotional purposes only and is not investment, financial or tax advice. Cornerstone and its employees do not provide financial, investment, legal, or tax advice. CHEIFS involves costs, obligations, restrictions and risks which may not be suitable for all homeowners. Advisors should evaluate all available options and strategies according to each client’s unique situation and consult appropriate specialists.}

_{This is not an offer or commitment. CHEIFS is subject to independent home appraisal, underwriting and approval. Additional costs include an origination fee of up to 2.99% of the investment payment or $2,000, whichever is more, and third-party closing costs such as credit reports, appraisal, title, recording, notaries, and closing, which may be deducted from the investment payment or paid separately. During the term, homeowners must continue to occupy, maintain, and insure the home and timely pay all property taxes, insurance premiums, and payments on any other mortgages. Homeowner’s obligations are secured by a mortgage or trust deed against the home in no lower than second lien position. CHEIFS Prime program requires a minimum home value of $315,000. Programs differ by property value and available equity. Additional fees, terms and conditions apply. Terms may vary and are subject to change. Not available in all states. Cornerstone does not offer CHEIFS or solicit business related to properties located in New York or Minnesota. Visit cheifs.com for additional details.}

_{CHEIFS is offered exclusively by Cornerstone Financing LLC, and its subsidiary Domus Funding Corp (California only), and does business as “Domus Funding LLC” in OH and as “Domus Funding” in NH (all referred to as “Cornerstone” or “Cornerstone Financing”). Principal Office: 86 Summit Ave., Ste. 201, Summit, NJ 07901. Toll-free (855) 462-4343. NMLS #2557707, www.nmlsconsumeraccess.org. For available states and licensing information, please visit us online at cheifs.com/licensing/.}

_{InsMark® is a registered trademark of InsMark LLC. Wealthy and Wise+™ is a trademark of InsMark LLC and are used with permission. The Wealthy and Wise+ software is owned by InsMark LLC. InsMark is not an agent, partner, or affiliate of Cornerstone, and Cornerstone assumes no responsibility or liability for its software, products, services, representations, information, or conduct.}

_{© 2026 Cornerstone Financing LLC.  “CHEIFS CONVERTING HOME EQUITY INTO FINANCIAL SUCCESS” and “CHEIFS” are registered service marks of Cornerstone Financing LLC.  All rights reserved.}