The Homeowner Perspective
Why homeowners choose HEIs
The Liquidity Challenge
Millions of American homeowners sit on substantial home equity but face immediate cash needs. Traditional options require monthly payments that strain already tight budgets. For retirees on fixed incomes, self-employed individuals with variable earnings, or families managing existing debt, taking on another monthly obligation simply isn't feasible.
HEIs offer a different path: immediate cash with no monthly payments. This single feature transforms home equity from trapped wealth into accessible capital.
Who Uses HEIs
The typical HEI customer profile reveals why these products fill a crucial gap:
Age: Typically in their 50s
Home Equity: Substantial, often 40%+ of home value
Income: Fixed or variable, often retirement or self-employment
Credit: May not qualify for best traditional rates
Primary Need: Cash without monthly payment burden
These homeowners have built wealth through decades of mortgage payments and appreciation, but that wealth remains locked in their homes when they need it most.
Common Use Cases
While specific usage statistics remain proprietary to HEI companies, customer testimonials and industry reports consistently highlight several primary uses:
Debt Consolidation: Eliminating high-interest credit cards and personal loans to improve monthly cash flow
Home Improvements: Essential repairs or strategic upgrades that may increase property value
Medical Expenses: Covering healthcare costs without depleting retirement savings
Life Transitions: Managing divorce settlements, education costs, or family emergencies
Business Investment: Funding small businesses without traditional loan requirements
The Appeal of No Monthly Payments
The U.S. Consumer Financial Protection Bureau identifies four key reasons homeowners choose HEIs:
Payment-Free Access: No impact on monthly budget
Flexible Qualification: No income verification requirements
Credit Accessibility: Available with scores as low as 500
Flexible DTI Limits: Wider acceptable debt ratios than conforming mortgages
Understanding the Trade-offs
Homeowners who choose HEIs prioritize immediate needs over long-term costs. They understand they're sharing future appreciation but value:
Staying in their homes without payment stress
Maintaining lifestyle despite income constraints
Avoiding bankruptcy or forced sales
Preserving credit by consolidating debt
The average 4.5-year holding period is indicative of homeowners using HEIs as bridge financing, planning to settle through future refinancing or sale when their situation improves.
The Homeowner Experience
From application to funding typically takes 2-3 weeks — dramatically faster than traditional refinancing. The origination process for HEIs is similar to that of traditional mortgages, with an application, home appraisal, underwriting, processing, and recording.
Once funded, homeowners continue living normally. They pay their existing mortgage, taxes, and insurance as before. The HEI sits quietly in the second lien position (although occasionally in first if there is no primary mortgage) until a future settlement event.
Market Context
The HEI market serves homeowners whom traditional lending often overlooks or overcharges. With over $35 trillion in home equity nationally but strict lending requirements post-2008, millions of equity-rich homeowners lack access to their wealth when needed.
HEIs fill this gap, providing liquidity to those who need it most, even if the long-term cost exceeds traditional financing.
Why This Matters for Manifest
Understanding the homeowner perspective explains the sustainability of Manifest's model. The HEIs Manifest acquires to back $USH are solutions for real families seeking real financial solutions.
The consistent demand from cash-flow constrained but equity-rich homeowners ensures a steady pipeline of HEI opportunities for the portfolio. As long as Americans build equity in their homes and face unexpected expenses, the market for HEIs will exist.
This alignment of interests — homeowners getting needed liquidity, and $USH holders gaining attractive real estate exposure — creates a sustainable ecosystem that benefits all participants.
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