Something on the order of one in every 11 home owners with a mortgage experience what the experts term a “labor market shock” each and every year. And with the conflagration that has been going on in Official Washington, that percentage is likely higher, currently at least.

A labor market shock is HR speak for getting laid off, being out-and-out fired, experiencing a pay cut, or leaving to start your own business. When it happens, it makes it difficult at best — or impossible at worst — to continue making house payments, let alone paying other recurring bills.

Face it: The notion that career and earnings trajectories are always headed north can no longer be taken for granted. Some people move sideways, others slide down the ladder. In a typical year, about 1.5% of all home owners become unemployed, 6.4% experience a decline in earnings and 1.9% transition into self-employment. As a result, some 4.6 million owners take a more than minimal hit to their credit records.

To protect themselves, smart owners have socked away some cash for just such an occasion. The experts — again those unnamed experts — suggest having at least six to 12 months worth of living expenses set aside for just such a rainy day. But most people don’t put away that much, if they put away anything at all.

Fortunately, most owners have a financial cushion in the equity they’ve built up in their homes. Even if someone bought their house just a few years ago, they may have already built up significant equity, thanks to fast and ever-rising prices. The trick, of course, is in figuring how to access it — and when.

If the owner waits until they’re unemployed, it will be tough to find a lender willing to give them a loan. No income, no loan. Period, end of story. Even if the owner is starting a new job right away or launching their own business, lenders are likely to turn them down because they do not have two years of continuous employment.

One way, of course, is to borrow against equity by taking out a second mortgage or a home equity loan. In both cases, though, the borrower is going to be required to make monthly payments based on the amount they borrow. And making those payments right away.

But taking on monthly payments at a time when you have little or no income isn’t advisable. “Don’t take on debt,” warns Allen Price of BSI Financial Services in Irving, Texas. “It could put you in an even worse position, especially if it takes you six, nine, or even 12 months to get another job.”

Besides, no income, no loan. So a better way to tap into a home’s vault is with a home equity line of credit. A HELOC is still a loan, but you don’t have to take any money until you actually need it. It just sits there on the books ready to be withdrawn as your personal situation dictates.

That’s why lenders should always advise their mortgage clients to set up a credit line at the same time they secure their primary financing. In other words, get the line on the books before the employment axe falls. No other approvals may be necessary.

If the borrower is one of the healthy minority of folks who have set aside rainy day reserves, they may never need to access their credit line. But if they don’t have enough savings — or they’re out of work so long that they deplete their stockpile — their equity is there when they need it.

Again, though, a HELOC is still a lien on the house. There’s that four-letter word again, debt. Once they take some money from their account, they’ll have to start paying it back each and every month. And if they’re still unemployed, well … you get the picture.

So, financially-strapped borrowers should also consider — and savvy loan professionals should recommend — a shared equity mortgage in which an investor hands over cash in exchange for part of the profits when the borrower eventually sells their place. Here, there are no income or credit requirements because there is no loan, and, therefore, no debt. It’s called a mortgage, but nothing needs to be paid back while the borrower is searching for work. The payback comes when the owner is ready to leave the house.

Most people turn to shared equity agreements when they don’t have enough money for a downpayment. An investor steps in to cover the difference. In trade, the buyer agrees to pay the investor a share of their equity sometime down the road.

But shared equity deals — sometimes called share equity finance agreements or home equity investment loans — also allow people to tap their home equity anytime they need some financial help. Here, investors cater to owners who don’t meet the requirements for actual loans. But any owner can qualify.

With a shared equity pact, owners won’t be required to make any payments. Not even interest. Only when they sell or refinance their first mortgages will they have to repay the investor. Not just the amount they put into the deal, though, but also an agreed-upon percentage of how much the property has appreciated since the agreement was struck.

Lately, a new category of start-ups has emerged to give consumers that option to cash in on their accumulated housing wealth. These shared equity outfits, to quote one, offer “a solution for an age-old challenge amid new economic realities.” The usual methods for removing home equity just don’t work anymore, it says. Even if an owner can qualify for funding, today’s loan rates are almost prohibitive. And denial rates for credit lines have remained steadily above those for primary financing.

How much money the investor is willing to put up depends on any number of parameters. And what percentage of the profits they’ll want in exchange depends on each individual investor.

Here’s a simplified example: In exchange for 25% of future appreciation, the owner receives $50,000. If the place appreciates during the investment term by $100,000, they’ll owe the investor $75,000, or their original investment plus their $25,000 share of the increased value.

Shared equity lending isn’t some back-room operation. According to BSI’s Price, whose company services shared equity deals on behalf of investors, the four largest investment firms wrote $2 billion worth of shared equity mortgages last year and expect to double that amount this year.

One of BSI’s clients, Hometap, will invest up to $600,000 in properties. The company has no income requirements but owners must have a credit score of at least 500. It takes a percentage of the owner’s equity, ranging from 1.5 to two times its original investment, depending on how long the owner holds the house.

Contracts range up to 10 years, meaning you either have to sell the place or refinance to pay back what you owe within a decade. However, if the house should decline in value, the company will share in that loss. Hometap makes investments in 18 states.

Another client, Unlock, also shares in the home’s depreciation. But unlike other shared equity companies, it allows owners to make partial buyout payments. It requires at least a 550 credit score, and will invest up to $500,000 with a 10-year firm. Unlock works in 19 states.

Yet another firm, Point, casts an even wider net. It makes 30-year term investments in 27 states.

The best way to determine how much money your clients can obtain is to ask several investment companies for an estimate. But generally the amount will depend on, among other things, the home’s current value and what is owed on it. In most cases, the difference must be at least 20%. Also key is the length of the investment. The longer the term, the more funds that can be accessed.

In a world where financial stability can evaporate overnight, homeowners must think strategically about how to protect and leverage their most valuable asset: their home. Whether it’s building a healthy savings buffer, proactively securing a home equity line of credit, or exploring innovative solutions like shared equity agreements, the key is to prepare before a crisis strikes. By planning ahead and understanding all the options available, homeowners can not only safeguard their investment but also navigate turbulent times with greater resilience and peace of mind. In today’s unpredictable economy, preparation isn’t just smart — it’s essential.