Best Home Equity Sharing Companies for 2023

A home equity shared agreement is an exchange between you and an investment company where you receive a lump sum cash payment in exchange for a portion of your existing equity.

Since it’s not a form of debt, the eligibility requirements are more lenient than with a traditional lender, making this an option for homeowners that are self-employed, have poor credit, or can’t afford additional monthly payments.

This guide will explain how a home equity sharing agreement works, which companies are the best, the benefits and downsides of accepting a home equity investment, and more.

Reviews of the best home equity sharing companies

We believe that the best home equity sharing companies have great terms, good financial support, and a consistent experience for all customers. Here are those companies:

Best overall: Unlock
Best for flexible qualification: Hometap

Best overall: Unlock

Free Quote

Editorial Rating: 4.7/5
Receive from $30,000 to $500,000
Only company allowing partial buyout payments
No monthly payments

Founded in 2020, Unlock is comprised of a team of experienced home equity investment professionals who strive to help homeowners utilize the equity in their homes to get the cash they need.

What you need to know

Only available in 15 states. Unlock is currently available in Arizona, California, Colorado, Florida, Michigan, Minnesota, North Carolina, New Jersey, Nevada, Oregon, South Carolina, Tennessee, Utah, Virginia, and Washington.
No monthly payments. Since Unlock is investing in your home, there’s no debt to repay.
Funds can be used for anything. There are no restrictions on how you use the cash you receive.
10-year term. The investment contract has a term of 10 years. You can buy out Unlock’s share of equity at any point during the 10-year term. If you don’t buy out Unlock before the term ends, you’ll need to sell your home so that Unlock can collect its share.
Partial buy-out payments accepted. Unlock is the only home equity investment company that allows you to buy out its position with partial payments.
Shares in the future appreciation and depreciation. Unlock will make money if your home appreciates during the term. If your home depreciates, Unlock will share in that loss.
More inclusive eligibility requirements. There are no income requirements, poor credit is accepted, and both owner and non-owner-occupied residences are eligible.
Quick online form. Fill out an easy online form in just 60 seconds to check your eligibility and get a cash estimate.

Pros

No monthly payments
Large investments available
Funds can be used for anything
The only company that allows partial buy out payments
Doesn’t share in any value created from home improvements made at your expense
No income requirements
Poor credit is accepted
Prequalify through an online form without impacting your credit score

Cons

Currently only available in 15 states
Receives a larger percentage of equity than the cash value you receive
If you don’t buy out Unlock’s position before the end of the term, you’ll need to sell your home

How to get started

If your home is in one of the states listed above, you have a credit score above 550, and a loan-to-value ratio below 75%, you should be eligible for an investment from Unlock.

According to its website, you can get an initial cash estimate in just 60 seconds by filling out an online form. If you like the terms outlined, you can complete an application and schedule a call with a representative who will walk you through your Investment Estimate.

If the terms are accepted, an appraisal will be done to determine the value of your home for the Investment Closing Statement. Once the final documents are signed, the funds will be wired to your account.

Ready to get a cash estimate in just 60 seconds with no impact on your credit score? Click here.

Best for flexible qualification: Hometap

Free Quote

Editorial Rating: 4.6/5
Receive from $15,000 to $600,000
Highest customer reviews of all companies reviewed
No monthly payments

Founded in 2017, Hometap wants to make homeownership less stressful and more accessible. Hometap is our choice as the best for flexible qualification because of its ability to provide a financing solution to homeowners with credit scores as low as 500.

What you need to know

Only available in 16 states. Hometap is currently available in Arizona, California, Florida, Michigan, Minnesota, New Jersey, New York, Nevada, North Carolina, South Carolina, Ohio, Oregon, Pennsylvania, Virginia, Utah, and Washington.
Excellent customer reviews. Hometap has an excellent rating of 4.9 out of 5 on Trustpilot and a BBB rating of an A+ as of January 20, 2022.
No monthly payments. Since Hometap is investing in your home, there’s no debt to repay.
Funds can be used for anything. There are no restrictions on how you use the cash you receive.
Widest investment range. Hometap offers the smallest investment amount ($15,000), as well as the largest ($600,000).
10-year term. The investment contract has a term of 10 years. You can buy out Hometap’s share of equity at any point during the 10-year term. If you don’t buy out Hometap before the term ends, you’ll need to sell your home so that Hometap can collect its share.
Shares in the future appreciation and depreciation. Hometap will make money if your home appreciates during the term. If your home depreciates, Hometap will share in that loss.
More inclusive eligibility requirements. There are no income requirements, poor credit is accepted, and both single-family homes and condos are eligible.
Quick online form. Fill out an easy online form in just a few clicks to check your eligibility and get a cash estimate.

Pros

No monthly payments
Small and large investments are possible
Funds can be used for anything
No out-of-pocket costs
Talk with an investment manager
Poor credit accepted
No income requirements
Prequalify through an online form without impacting your credit score

Cons

Currently only available in 16 states
Receives a larger percentage of equity than the cash value you receive
If you don’t buy out Hometap’s position before the end of the term, you’ll need to sell your home

How to get started

If your home is in one of the states listed above, you have a credit score above 500, and a loan-to-value ratio below 75%, you should be eligible for an investment from Hometap.

According to its website, there are four steps to take to get you the cash you need. First, you’ll need to fill out a quick online form that will prequalify you and provide an estimate of how much money you can receive.

Second, a dedicated Investment Manager will be assigned to your account and answer any questions you may have. Third, if you agree to the terms in the estimate, a home appraisal will be scheduled to determine the final terms of the agreement. Lastly, you’ll sign the final offer and receive your funds within a few days of closing.

Ready to get a cash estimate in just 60 seconds with no impact on your credit score? Click here.

How we chose the best home equity sharing companies

We looked into eight home equity investment companies to determine what each was the best for and how they compared to each other. Our evaluation focused on 11 categories: transparency, eligibility requirements, investment amount, fees, buy-out cost structure, buy-out terms, the application process, unique benefits, customer reviews, customer experience, and funding time.

Companies reviewed

Other companies that weren’t selected as one of the best

Unison

Founded in 2004, Unison is a team of financial and real estate professionals committed to helping equity-rich homeowners finance their life needs without adding debt.

Only available in 29 states. Unison is currently available in Arizona, California, Colorado, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, Wisconsin, and Washington, D.C.
No monthly payments. Since Unison is investing in your home, there’s no debt to repay.
Funds can be used for anything. There are no restrictions on how you use the cash you receive.
30-year term. The investment contract has a term of 30 years. You can buy out Unison’s share of equity at any point during the 30-year term. If you don’t buy out Unison before the term ends, you’ll need to sell your home so that Unison can collect its share.
Restriction periods. There is a three-year restriction on remodeling adjustments which allow you to benefit from the full value of home improvement projects.
Shares in the future appreciation and depreciation. Unison will make money if your home appreciates during the term. If your home depreciates, Unison will share in that loss. However, Unison won’t share in any losses if you choose to buy out the agreement.
More inclusive eligibility requirements. There are no income requirements, and fair credit is accepted.
Quick online form. Fill out an easy online form in just 60 seconds to check your eligibility and get a cash estimate.

Point

Founded in 2015, Point was built after its team members experienced firsthand the frustrations of homeownership and debt financing.

Only available in 18 states. Point is currently available in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Virginia, Washington, and Washington, D.C.
Promotional pricing for home improvements. If you plan to use your funds for home improvements, you may be eligible for promotional pricing.
No monthly payments. Since Point is investing in your home, there’s no debt to repay.
Funds can be used for anything. There are no restrictions on how you use the cash you receive.
30-year term. The investment contract has a term of 30 years. You can buy out Point’s share of equity at any point during the 30-year term. If you don’t buy out Point before the term ends, you’ll need to sell your home so that Point can collect its share.
Shares in the future appreciation and depreciation. Point will make money if your home appreciates during the term. If your home depreciates, Point will share in that loss.
More inclusive eligibility requirements. There are no income requirements and bad credit is accepted.
Quick online form. Fill out an easy online form in just 60 seconds to check your eligibility and get a cash estimate. Point’s online form includes helpful information that explains what everything means along the way.

How does a shared equity agreement work?

A shared equity agreement allows you, the homeowner, to receive a lump sum payment that can be used however you’d like, without taking on debt or monthly payments. In return, the investing company gets a percentage of the future value of your home.

While there are no monthly payments, you are required to buy out the investing company’s share of equity before the end of the term (typically 10 or 30 years).

There are two common repayment models: 1) you pay back the initial amount borrowed plus a pre-determined percentage of any appreciation, or 2) you pay back a pre-determined percentage of the new appraised value of the home.

An important note: If your home depreciates in value, the investing company will share in that loss and the amount you owe will be less than the amount you’d owe had the home maintained the same value throughout the term.

To demonstrate how repayment works, we’ve used Unison’s repayment model to see how much a homeowner who received $25,000 in exchange for 20% of their equity would owe at the end of their term.

	Appreciated Home	Depreciated Home
Starting home value	$500,000	$500,000
Valuation adjustment*	5%	5%
Adjusted home value	$475,000	$475,000
Home value at repayment	$575,000	$375,000
Equity being shared	20%	20%
Principal funding amount	$25,000	$25,000
Amount you owe	$45,000	$5,000

*Most companies add a valuation adjustment to the appraisal of your home for risk purposes. The amount your home appreciated or depreciated is based upon the adjusted home value.

Benefits and downsides of a shared equity agreement

Pros

You don’t have to make monthly payments.

The cash you receive is provided in exchange for equity in your home, so you do not have to pay interest or repay the principal amount each month.
The investment company shares in the risk.

If the value of your home depreciates, the company co-investing will share in that loss, meaning you may owe less than the original investment.
Poor credit is accepted.

Home equity share agreements aren’t loans but investments in your property, so homeowners with poor credit are eligible.
No income requirements.

Home equity-sharing companies aren’t reviewing your ability to follow a repayment schedule, so a steady income is not required.

Cons

You could miss out on growth if home prices increase significantly in your area.

You won’t fully benefit if your home appreciates because the investment company owns some of the equity.
You could end up paying more than with a traditional home equity loan.

This is likely if property values rise.
You need sufficient equity in your home.

You usually can’t enter into an equity sharing agreement if you have a large amount of existing debt on your home.
Your equity may be undervalued.

Some lenders make a risk adjustment to the value of your home to protect their investment. This means you may not get the full value of your home’s equity.
You’ll have to pay appraisal fees.

Typically, the investing company will require you to get the fair market value of your home estimated by a licensed appraiser before they offer a final investment amount.

FAQ

Are there monthly payments with an equity sharing agreement?

No, there are no monthly payments or interest charges with home equity share agreements. Instead, you receive cash today in exchange for a percentage of your home’s future value.

Does my credit score impact the amount of cash I receive?

The short answer, yes.

The amount of cash you receive is determined by several factors. These factors include your home’s current appraised value, any pre-existing housing debt, your creditworthiness, and how you use the property.

Remember, though, most equity sharing companies have low minimum credit score requirements, so homeowners with poor credit are eligible. So, while your credit can impact the amount of cash you receive, that doesn’t mean you won’t still be able to receive a large cash investment.

What’s the difference between a home equity investment and a home equity loan or line of credit?

To start, let’s define each of these financial tools:

Home equity investment: An exchange of a lump sum of cash for a share of equity in your home. Read more: What is a home equity investment?
Home equity loan: A lump sum payment secured by your home. You’ll repay this money over a fixed term, with interest. Read more: Best home equity loans
Home equity line of credit: A revolving line of credit allowing you to draw funds from an account as needed. Any funds you draw will need to be repaid by the end of the term. The funds you withdraw are secured by your home. Read more: Best home equity lines of credit

Now that we’ve defined each tool, let’s take a look at a side-by-side comparison to see how each differs from the other.

	Home equity investment	Home equity loan	HELOC
Minimum credit score	Poor credit accepted	Typically fair credit	Typically fair credit
Income requirement	None	Yes, varies	Yes, varies
Monthly payments	None	Yes	Yes
Interest rates	None	Yes	Yes

Is a home equity sharing agreement right for me?

Since a home equity sharing agreement isn’t a form of debt, it can be a good option for homeowners who need cash but can’t take on new monthly payments or meet the eligibility requirements of a home equity loan or home equity line of credit.

While a lender is trying to determine if you can repay a loan, an investment company is trying to determine the likelihood of your home appreciating in the future. This difference allows homeowners with a low credit score, as low as 500, to be eligible for a cash investment.

If you don’t want to give up a portion of your home’s equity, can afford additional monthly payments, and can meet the eligibility requirements set by traditional lenders, then a home equity loan may be a better choice.

Recap of the best home equity sharing companies

Company	Our rating	Investment	Minimum credit score
Unlock	4.7/5	$30,000 – $500,000	550
Hometap	4.6/5	$15,000 – $600,000	500