A system and method for calculating and using a financial instrument from an institution to fund a home purchase, refinancing, or equity line of credit transaction is provided. The financial instrument has no associated periodic interest payment and is structured so that its return on investment will include all or a portion of appreciation if the residential real estate has appreciated in value at the time of termination of the financial instrument. In effect, the financial instrument may be structured so that it provides funds to finance a residential real estate transaction (in whole or in part) in exchange for participation in some or all of the appreciation in the value of the home.