A FAPA is an agreement where you, the homeowner, receive an upfront payment from PREESH in exchange for sharing a portion of your home's future appreciation. A FAPA is not a loan.
No. A FAPA is not a loan, mortgage, financing agreement, or security.
You remain the homeowner and keep responsibility for the property.
The amount depends on the home value, eligibility, and final approved FAPA terms.
Process
Typically up to 15% of appreciation, based on the S&P/Case-Shiller Index or as stated in your approved FAPA terms.
No. Appreciation is usually based on the index value change, not the market sale price—see your agreement for exact terms.
Fees are generally not paid out of pocket up front; they may be added to the final payoff (for example, administrative, valuation, and recording fees). Exact fees appear in your FAPA.
Typically up to 10 years from the effective date. Payoff options after the first year are described in your agreement.
Eligibility
Usually upon sale, certain breaches, or near the end of the term—as defined in your FAPA.
The agreement may terminate and any recorded memorandum may be released, according to your FAPA terms.
An early termination charge may apply. The amount and formula are set in your FAPA.
Examples can include mortgage default, unpaid taxes, unauthorized transfers, foreclosure, bankruptcy, or other events listed in your FAPA.
Money & Terms
Yes, typically once every 6 months with advance notice, as allowed in your agreement.
Yes. PREESH typically records a Memorandum of Option to provide notice of the agreement.
Yes. PREESH may assign its rights as permitted in the FAPA, often without requiring additional homeowner consent.
Generally no—not without PREESH's written consent, unless your FAPA says otherwise.
After Funding
PREESH selects a similar index and adjusts calculations as described in your agreement.
Through valuation methods described in your FAPA, often using comparable sales and related adjustments.
No. You, the homeowner, remain responsible for taxes, insurance, maintenance, and other property expenses.
Yes. Legal, tax, and financial counsel is strongly recommended before signing a FAPA.
Is PREESH right for you?
A quick guide to help you decide if this option fits your situation.
✓ Good fit if:
✓ You need cash without taking on debt
✓ You want to avoid monthly payments
✓ You plan to stay in your home long-term
✓ You have significant equity in your home
✓ You want flexible repayment terms
✓ You value simplicity and transparency
⚠ Consider alternatives if:
● You plan to sell your home soon
● You need a very large amount of cash
● You prefer traditional loan structures
● You have very low equity in your home
● You want to keep 100% of future appreciation
● You need funding within 24 hours
Not sure? Our team can help you explore your options.
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