Cornerstone Financing Details Economics of CHEIFS Non-Debt Home Equity Product

Cornerstone Financing has shared an update.

The company outlined the mechanics of its CHEIFS product, a home-equity-based, non-debt financing solution. Under CHEIFS, Cornerstone purchases a portion of a homeowner’s equity and provides tax-free funds while the homeowner retains ownership and control of the property. For every 1% equity interest Cornerstone acquires, its equity position is structured to increase over time to 2.25x that initial share. Homeowners can repay the proceeds at any time at a 12.99% annualized cost before Cornerstone’s ownership cap is reached. After the cap, the payoff is the lesser of the product’s maximum ownership percentage or a 12.99% cost, with no traditional debt, monthly payments, or fixed term.

For investors, this product structure positions Cornerstone Financing within the growing alternative home-equity and non-debt financing segment, targeting homeowners seeking liquidity without additional loans and advisors seeking planning tools. The clearly defined return parameters (2.25x equity participation and 12.99% cost of capital) suggest a model focused on risk-adjusted yield tied to residential real estate values and homeowner exit behavior. If scaled, CHEIFS could provide Cornerstone with recurring deployment opportunities and potentially attractive unit economics, while exposure to housing market cycles, property valuation trends, and regulatory scrutiny of alternative equity products remains a key risk factor. The emphasis on flexibility for advisors and homeowners may help differentiate Cornerstone from traditional home equity loans and HELOCs, potentially improving its competitive position in the home equity and retirement-planning markets.