What Is Home Price Protection & How Does It Help?

Home Price Protection is an optional, market-based home value protection product that can provide an automatic cash payout if local home prices decline after you buy—helping you move forward with more confidence in uncertain markets.

Buying a home is one of the biggest financial decisions most people ever make. Even when you believe in the long-term value of homeownership, short-term market swings can create real hesitation—especially if you’re worried about buying “at the wrong time.”

That’s exactly where Home Price Protection can help. Instead of trying to predict the market, this program is designed to help you manage downside risk by tying protection to local housing price indices at the time of purchase. If the index drops below a predetermined threshold during the contract term, you may receive a cash payout intended to offset a portion of that decline.

 

What Home Price Protection Is (And What It Isn’t)

One of the most important things to understand is that Home Price Protection is not part of your mortgage.
It’s a separate financial protection product that can be used alongside your home loan.

• What it is: A contract-based financial product tied to market (index) performance in your area.
• What it is not: Not a mortgage loan, not a refinance, not a second lien, and not a replacement for homeowner’s insurance.
• What it doesn’t change: Your interest rate, loan approval, monthly payment, or ownership rights.

 

How Home Price Protection Works

1. It’s market-based. The program tracks verified housing price data for your specific market—rather than your individual home’s resale price.
2. You choose the coverage details. At enrollment, you select the protection amount, with terms disclosed upfront.
3. The market is monitored throughout the term. If the market index falls below the trigger—measured at the end of the contract term—a payout is triggered.
4. Payouts are automatic when triggered. There’s no need to file a claim, sell your home, or prove an individual property loss. If a payout is issued, it’s yours—even if values later recover.

 

How Home Price Protection Helps Homebuyers

Home Price Protection is designed to reduce the “what if” factor that can keep buyers on the sidelines. While it doesn’t remove all market risk (nothing can),
it can provide a real confidence boost—especially during periods of uncertainty.

• First-time buyers: Helps reduce fear of buying at a peak by addressing short-term downside risk.
• Move-up buyers: Adds an extra layer of confidence during a bigger financial transition.
• Volatile or transitional markets: Helps bridge short-term uncertainty while you focus on long-term homeownership goals.
• Sellers and agents: In some situations, it can be used as a listing incentive to help a home stand out to cautious buyers.

 

Frequently Asked Questions

Is Home Price Protection a mortgage loan?

No. Home Price Protection is not a mortgage loan and does not replace home financing. It’s a separate financial protection product designed to help manage
the risk of potential declines in local home prices.

Does Home Price Protection affect my mortgage rate or monthly payment?

No. It does not impact your mortgage interest rate, loan approval, monthly payment, or ownership rights. It’s completely separate from your mortgage.

What triggers a payout?

A payout may be triggered if the housing price index for your selected local market falls below the protected threshold during the contract term.

Do I need to sell my home to receive a payout?

No. Payouts—when triggered—are designed to be automatic and do not require selling your home.

Do I have to file a claim or get an appraisal to receive the payout?

No. Unlike traditional claim-based processes, this program is designed so that no claim filing or individual property appraisal is required to trigger a payout.

What happens if home prices go up instead of down?

If prices remain stable or increase during the contract term, no payout is triggered. You simply keep the benefit of having had protection in place—without
penalties or adjustments to your mortgage.

If I receive a payout and the market later rebounds, do I have to pay it back?

No. Once a payout is issued, it belongs to the homeowner—even if market values later recover.

Is Home Price Protection the same as shared equity?

No. It is not a shared-equity or appreciation-sharing agreement. It’s designed as a protection against housing market declines and does not give up ownership rights.

How do I know if Home Price Protection is available for my area?

Availability is determined by ZIP code. The REZILOANS Team can help you confirm availability and walk you through your options.

How long does enrollment take?

Enrollment can typically be completed in just a few minutes, with pricing and contract terms disclosed upfront.

 

Conclusion

Home Price Protection can be a smart confidence tool for buyers who want to move forward without feeling exposed to short-term market shifts—while keeping their mortgage terms and ownership rights unchanged.