The Smart Alternative: Fangorn's EAOPA
(Equity Access and Option to Purchase Agreement)
This equity access agreement is NOT a traditional HELOC or home equity loan. Instead:
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1. No monthly interest or principal payments.
Unlike a home equity loan or HELOC, which requires you to make regular monthly payments of interest and/or principal, Fangorn’s Equity Access Agreement provides funds with no immediate repayment obligations. During the initial 90-day access period, you pay nothing at all—no interest, no fees, and no penalties. This gives you financial breathing room without adding to your monthly bills or taking on new debt.
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2. Releases cash now in exchange for a fixed share of future home appreciation.
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This isn’t a loan—it’s an agreement where you receive up to $20,000 in cash today in exchange for a pre-agreed share of your home’s future appreciation if and when you sell, refinance, or the term ends. This means no compounding interest, no rising balances, and no surprises—just a fixed percentage of the future increase in value, giving you clarity and predictability.
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3. No adjustable rates or balloon payments.
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Traditional equity loans can come with variable interest rates or large balloon payments at the end of the term, creating financial risk. Fangorn’s agreement has no fluctuating interest rates and no lump sum payments due at unexpected times. You’ll never be caught off guard by rising costs or forced to refinance under pressure.
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4. Repayment only upon sale, refinance, or contract term.
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There’s no ticking clock. You don’t need to repay anything until one of three events occurs: you sell your home, refinance it, or reach the end of the agreement term. Even then, the repayment structure is clearly defined and based on your home’s value—not a running loan balance. Alternatively, if you prefer, you can convert the initial access to a flexible 12-month repayment plan.
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5. Homeowner retains full control and occupation rights.
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Throughout the life of the agreement, you remain the sole owner of your property. Fangorn cannot force a sale, take possession, or interfere with your use of the home. Even during the agreement term, you’re free to live in, rent out, or make decisions about your property however you see fit. And if you're in the 90-day access period, you can cancel at any time just by returning the funds—no penalties or commitments.
Why Traditional Loans & HELOCs Are Risky
1. Current Rates Are High
HELOC rates have climbed above 9%, making today’s borrowing significantly more expensive than most fixed mortgage rates.
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2. Doubling Payments
BEFORE: Interest-only payments.
AFTER (usually 10 years): Combined principal + interest or balloon payments, which can double what you owe monthly.
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3. Hidden Fees & Closing Costs
Most HELOCs carry significant fees: appraisal, annual fees, inactivity charges—even penalties if closed early.
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4. Variable Interest Rate Shock
HELOCs typically have adjustable rates tied to the prime index. When rates rise, monthly payments can spike dramatically—often surprising homeowners during repayment periods.
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Why Homeowners Choose Fangorn
Fangorn’s Equity Access and Option to Purchase Agreement stands apart from traditional loans, HELOCs, and even other equity-sharing models. It’s not a loan—you don’t owe interest or monthly payments. It’s not a forced sale—there’s no obligation to sell at all.
Instead, it’s a simple, flexible agreement: you receive immediate cash (up to $25,000) in exchange for giving Fangorn the exclusive right to purchase your home if and when you choose to sell. And if you change your mind? Just return the funds within 90 days—no penalties, no fees, no questions asked. Even after 90 days, we offer an optional 10-month repayment plan so you can keep your home on your terms.
This is financial breathing room without strings, empowering you to unlock cash today while preserving your future flexibility.
