Home equity sharing is an option for accessing cash without taking on debt. With an equity sharing agreement, you exchange a portion of your home’s equity for a lump-sum payment. The investment company will expect you to either buy out its position or sell your home to make payment by the end of your term.
These agreements are a good option for homeowners who need cash but can’t afford additional monthly payments or can’t meet the eligibility requirements required by lenders.
Hometap and Unison are two companies that offer equity sharing agreements. In this comparison, we’ll break down how each company compares to determine which is the better option.
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| Investment amount | $15,000 – $600,000 | $30,000 – $500,000 |
| Investment amount | Investment amount | |
| $15,000 – $600,000 | $30,000 – $500,000 | |
| Term length | 10 years | 30 years |
| Term length | Term length | |
| 10 years | 30 years | |
| Min. credit score | 500 | 620 |
| Min. credit score | Min. credit score | |
| 500 | 620 | |
| State availability | AZ, CA, FL, MI, MN, NJ, NV, NY, NC, OH, OR, PA, SC, UT, VA, WA | AZ, CA, CO, DE, FL, IL, IN, KS, KY, MA, MI, MN, MO, NE, NV, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, UT, VA, WA, WI, DC |
| State availability | State availability | |
| AZ, CA, FL, MI, MN, NJ, NV, NY, NC, OH, OR, PA, SC, UT, VA, WA | AZ, CA, CO, DE, FL, IL, IN, KS, KY, MA, MI, MN, MO, NE, NV, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, UT, VA, WA, WI, DC | |
| See the best home equity investments. | ||
In this comparison:
- Does Hometap or Unison have better ratings and reviews?
- Is an investment from Hometap or Unison more accessible?
- Scenarios in which Hometap or Unison is better than the other
- Our choice between Hometap and Unison
Does Hometap or Unison have better ratings and reviews?
Looking at past customer reviews can help you better understand a company’s pros and cons, as well as what you can expect if you do business with them. We sifted through reviews of both Hometap and Unison, and here’s what we found:
| Rating source | Hometap | Unison |
| Trustpilot | 4.9 | 4 |
| LendEDU | 4.6 | 4.4 |
| Better Business Bureau | A+ | A+ |
Ratings are accurate as of February 2, 2022.
Hometap wins out when it comes to ratings and reviews.
On the BBB, Hometap only had two reviews at the time of writing, with one being negative. Unison, on the other hand, has had 40 complaints on the BBB in just the last three years. A whopping 16% of Trustpilot reviews also say Unison was either “Bad,” “Poor,” or just “Average.”
Is an investment from Hometap or Unison more accessible?
Looking at reviews is important, but so is weighing each option’s availability and eligibility requirements. Both Unison and Hometap have different requirements for qualifying, and each is only available in certain states.
Understanding these nuances and limiting the number of applications you submit is vital to minimize hard credit inquiries (and the credit score hit they come with). To start, use the below data to determine which option you’re most qualified for, and then utilize either Unison’s or Hometap’s free quote tool. These tools let you see how much money you may be eligible for without submitting a complete application or initiating a hard credit check.
| Hometap | Unison | |
| State availability | AZ, CA, FL, MI, MN, NJ, NY, NV, NC, SC, OH, OR, PA, VA, UT, and WA | AZ, CA, CO, DE, FL, IL, IN, KS, KY, MA, MI, MN, MO, NE, NV, NJ, NM, NY, NC, OH, OR, PA, RI, SC, TN, UT, VA, WA, WI, and DC |
| Min. credit score | 500 | 620 |
| Income requirement | None | None |
| Max. LTV | 75% | 70% |
| Type of home | Single-family homes, condos | Single-family homes, townhouses, condos |
| Investment | $15,000 – $600,000 | $30,000 – $500,000 |
| Free estimate | Free estimate |
Unison is more widely available than Hometap, and for many homeowners, it may be your only option. If both are at your disposal, you’ll want to get a cash estimate to see which offers you better terms. Unison’s credit score requirement is much higher, while Hometap’s goes as low as 500.
Scenarios in which Hometap or Unison is better than the other
If the best choice still isn’t clear, we’ve broken out some specific scenarios below that may help guide the way. Check if you fall into one of the following categories and, if so, find out which equity sharing agreement is best suited for your situation.
- If you need a large investment
- If you need a small investment
- If you want a longer term length
- If you want a company with excellent ratings
- If you don’t want any buyout restrictions
- If you have fair or poor credit
If you need a large investment: Hometap
Want the largest payment possible? Then Hometap’s your answer. With Hometap, you can get up to $600,000, while Unison’s limit is slightly less at $500,000.
Just remember: Your payment is based on your home’s value, so to access that full $600,000, your home would need to be worth at least $800,000. Hometap will only lend you 75% of your home’s value. (And $800,000 x .75 = $600,000).
If you need a small investment: Hometap
Hometap’s also your best bet if you need a smaller amount. Unison’s minimum investment is $30,000. Hometap, on the other hand, has a minimum investment of $15,000.
If you want a longer term length: Unison
Unison offers 30-year terms, meaning you won’t need to sell the home or repay the money for at least three decades (if you want). Hometap’s term is much shorter, and repayment is due within just ten years.
If you want a company with excellent ratings: Hometap
We covered this above, but Hometap’s ratings tend to be better than Unison’s. The company has far fewer negative reviews and complaints. Hometap was also rated higher on our internal analysis.
If you don’t want any buyout restrictions: Hometap
When it comes to repayment, Unison wants you to keep the investment for at least five years. If you decide to sell before that point, Unison will not take any loss if your home has declined in value. Hometap, on the other hand, allows you to sell or buy out its investment at any point during the 10-year term.
If you have poor credit: Hometap
Hometap’s credit score minimum is much lower, so if your credit isn’t great, they may be your best option. With Unison, you’ll need at least a 620 — and if you’re near the bottom of that threshold, you’ll also need a lower DTI and will be able to access less cash. As Unison puts it, “The allowable LTV and DTI goes down as credit score goes down.”
Which company is our choice between Hometap and Unison?
Generally speaking, in the Unison vs. Hometap battle, Unison wins out. The company is available in more states, will incur more losses if your home depreciates than Hometap, and has a simplified online prequalification form.