Splitero Home Equity Review: Pros, Cons, and What You Should Know

4.5 _/5

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Home Equity Investment

• Receive up to $500,000 in cash
• Remain the owner and continue living in your home
• No monthly payments
• No employment or income requirements

• Only available in select areas of California, Colorado, Oregon, Tennessee, Utah, Virginia, and Washington
• Must have 70% equity in home
• Mobile homes not eligible
• Only owner-occupied properties eligible (no investment properties)

About Splitero

Founded in 2021, Splitero aims to redefine how homeowners tap into their equity without accumulating debt. The company operates on a home equity investment model, giving you upfront access to your home’s equity. In return, you share a portion of your home’s future value with Splitero.

The service is ideal for homeowners who don’t want the burden of monthly payments or added interest and who live in one of the states where Splitero operates. It can also be a fit for those lacking the credit score to qualify for traditional home equity loans or lines of credit (HELOCs). If you’re eyeing a home remodel, debt consolidation, or an investment opportunity, Splitero offers a debt-free alternative.

How does Splitero work?

Splitero offers a way to tap into your home’s equity without taking out a loan or accumulating debt. You get a lump sum upfront, and in return, Splitero acquires a share of your property’s future value. When you sell the home or reach the end of the term, you settle up with Splitero based on that agreed-upon share.

Here’s what to know about a Splitero home equity investment:

• Investment amounts: Up to $500,000 or 25% of your home
• Term length: Maturity date of your first-lien mortgage or 10 years from origination, whichever is later (maximum of 30 years)
• Repurchase options: You can repurchase your option from Splitero anytime within the term, typically through a refinance, home sale, or cash buyout
• Minimum credit score: 500
• Unique features: No income requirement for eligibility

Who’s eligible for a Splitero home equity investment?

Eligibility for a Splitero home equity investment is designed to be more accessible than traditional home equity products. You don’t need to meet any income or employment requirements, and the minimum credit score is just 500, which is lower than many conventional lenders.

Unlike traditional loans with fixed terms, a home equity investment from Splitero is tied to the market value of your property, which means the amount you repurchase could increase if your home appreciates in value. If you can’t settle at the end of the term, you may need to sell your house to cover the investment.

Properties	Owner-occupied properties only; Single-family residences, condominiums, townhomes, and multi-family residential properties (2 to 4 units).
Property value	$200,000 – $5 million
State of residence	California, Colorado, Oregon, Tennessee, Utah, Virginia, and Washington
Max. investment	Up to 25% of the home’s value ($500,000 max)
Min. equity in home	70%
Min. credit score	500
Min. income	None

How do you repurchase a home equity investment from Splitero?

Splitero offers an option repurchase agreement. It doesn’t allow for partial payments or even a full repayment. Instead, when you’re ready, you will repurchase your home with a one-time lump sum.

Your repurchase amount depends on the percentage of your home’s value that Splitero invested, plus its share of any appreciation in the property’s value. Within or at the end of your term, you have three paths to repurchase:

1. Refinance your home
2. Sell your property
3. Cash buyout

There is no penalty for early repurchase, so you can buy back your home from Splitero at any time that fits your financial situation.

At the end of the term, you will owe the original amount invested by Splitero plus a percentage of your home’s appreciation, if applicable. The repurchase term can last up to 30 years, ending 10 years from the origination date of your agreement with Splitero or when your first mortgage matures—whichever is later.

How much does Splitero cost?

Here are the fees you can expect to pay with Splitero:

• 4.99% origination fee (min. $1,500)
• Escrow, title, and closing fees totaling around $500 – $1,500
• Appraisal: $200 – 700
• State credit report fee

Rather than paying them upfront, you’ll pay these costs out of your home equity agreement. They’re deducted from the total amount you receive.

Splitero calculates your cost based on your home’s value, your equity, and the percentage of future appreciation you and Splitero agree to share in your contract. This percentage varies for each borrower.

How is the final payment calculated?

Splitero determines your final repurchase amount by appraising your home twice: once when you start the investment and again when you’re ready to repurchase. The amount you owe depends on the value of your home at the time of repurchase and the percentage of appreciation you agreed to share with Splitero.

Here’s how it works:

• Initial appraisal: Splitero orders an independent third-party appraisal to determine your home’s current market value. This appraisal sets the “Initial Appraised Value,” which helps decide how much cash you can receive.
• Repurchase value: When you’re ready to repurchase, your home is appraised again to establish the “Repurchase Home Value.” Your final payment is based on this new value.
• Safety cap: A cap of 19.99% on the annual rate helps protect you from sharing too much appreciation if your home’s value increases significantly or if you buy back quickly.

If your home’s value decreases, you could owe less; Splitero also shares in the depreciation. You can buy back the investment through a home sale, refinance, or cash settlement anytime within the term.

The image below from Splitero’s website shows how a five-year investment could work out:

Does Splitero have any control over my home or its condition?

Splitero doesn’t get a say in how you handle your property. Here is what you should know:

What control does Splitero have over home maintenance and renovations?

Splitero provides cash in exchange for a share of your home’s future value, but it doesn’t retain control over how you maintain or upgrade your home. You’re free to undertake any home projects, whether that’s a new coat of paint or a full-on kitchen renovation, without needing to seek permission.

You can use the cash you receive from Splitero however you wish, including for home renovations. Splitero does not mandate regular inspections during the term of the agreement, but it expects homeowners to perform basic maintenance.

Does renovating the home affect the repurchase amount?

When you pump money into significant home upgrades, that investment isn’t lost. Your home’s value increases, but so does the amount you must pay Splitero at the end. Your slice of the home’s future value will also reflect these improvements.

Competitors Unlock and Hometap offer home renovation adjustment options. These adjustments allow you to keep a greater portion of the increased home value resulting from improvements. From what we can tell, Splitero does not offer an option like this.

Are you required to maintain the home in a certain condition?

Splitero states on its website that it expects homeowners to perform “basic maintenance.” Remember that keeping your home in good shape could affect its future value and, hence, the amount you owe when the term ends.

Pros and cons of Splitero

Splitero comes with advantages and shortcomings. A closer examination can help you decide whether it’s the right choice for your situation.

Pros

• No income or employment requirements

  A useful feature for those who may struggle with traditional lending criteria.

• 500 minimum credit score requirement

  This is lower than many traditional home equity lenders.

Cons

• Lump-sum payment

  Unlike Unlock, Splitero requires full payment at once, limiting your options.

• No early payoff benefits

  You won’t find incentives for repurchase your investment early, unlike competitor Hometap.

• Low customer ratings

  Negative reviews and low ratings indicate potential issues in funding, appraisal, and processing time.

• Limited availability

  Splitero is only available in select areas of several states.

Alternatives to Splitero

If you like the home equity investment model but aren’t sure Splitero is the right company for you, check out our top-rated competitors:

See our resource on the best home equity sharing agreements and list of reviewed home equity companies for more.

Is Splitero a reputable lender?

Source	Customer rating	Number of reviews
Trustpilot	3.3/5	28
Better Business Bureau	3.11/5	9

Splitero’s customer ratings tend to be mediocre. The company has secured an “A” rating and accreditation from the Better Business Bureau, lending it credibility. Trustpilot’s limited features one-star complaints and five-star praises. 

The common issues cited involve long processing times and a lack of communication, specifically regarding application denials. However, several reviews also mention good customer service.

Does Splitero have a customer service team?

Splitero’s customer service team operates out of San Diego, California. The team assists with inquiries ranging from application procedures to the details of the repurchase process.

Contact Splitero:

• Email: [email protected]
• Mailing address: 8910 University Center Ln., Suite 400, San Diego, CA 92122
• Social media: X (formerly Twitter), Facebook, Instagram, LinkedIn

How to apply for a Splitero home equity investment

Splitero allows homeowners to prequalify without affecting their credit score. However, a full application triggers a hard credit inquiry, which could affect your credit.

Here are the steps to apply:

1. Check eligibility: Verify whether you prequalify for an investment up to $500,000. This usually takes one to two business days.
2. Complete application: Answer questions about yourself, your home, and the use of funds. Submit a government-issued ID, mortgage statements, and possibly other documents.
3. Wait for offer: After preapproval, Splitero assesses your home’s value and other conditions. A final approval follows underwriting.
4. Get funds: Upon approval, you’ll receive a wire transfer of the agreed amount.
5. Repurchase option: You have the flexibility to repurchase your option within the term—as long as 30 years—via a refinance, home sale, or cash buyout.

How do other home equity products compare to Splitero?

Splitero’s home equity investment model offers a lump sum of cash in exchange for a share of your home’s future value, with no monthly payments or accruing interest. Here’s how this differs from other home equity options:

• Home equity loans: A home equity loan provides a lump sum based on your home’s equity but requires regular monthly payments with interest. In contrast, Splitero does not add monthly debt obligations or interest, making it more flexible for those who prefer no regular payments.
• Home equity lines of credit (HELOCs): A HELOC allows you to borrow against your home equity as needed, with variable interest rates and ongoing payments. Splitero’s model does not involve any monthly payments or interest, making it a better fit for those looking to avoid monthly obligations.
• Cash-out refinance: A cash-out refinance involves replacing your mortgage with a new, larger loan, giving you the difference in cash. It often comes with new terms, potentially higher interest rates, and monthly payments. Unlike a cash-out refinance, Splitero provides cash without altering your mortgage or adding new debt.
• Reverse mortgages: Available for homeowners 62 and older, reverse mortgages provide payments based on your home’s equity but accrue interest and reduce the owner’s equity over time. Splitero’s model requires no repurchase until the end of the term or when you sell or refinance, and it does not accrue interest.

Splitero offers a unique alternative for those seeking to access their home equity without monthly payments, interest, or new debt, making it a flexible option compared to traditional home equity products.

FAQs

How long does it take to get funds from Splitero?

Once approved, receiving funds from Splitero typically takes a few business days. The duration depends on how quickly you complete your application and the underwriting process.

Do you need to tell Splitero what the funds are used for?

Splitero asks what you plan to use the funds for during the application process. The use of funds won’t necessarily affect your eligibility, but knowing your plans helps Splitero offer a tailored home equity investment that fits your financial needs.

Are there any tax implications for using Splitero?

With Splitero, you won’t face immediate tax implications when you get the funds because it’s an investment, not a loan. However, tax implications could come up when you repurchase your home equity investment or sell your home. Consult a tax advisor for personalized guidance on how Splitero might affect your tax situation.

What happens if my home is damaged or destroyed during the term?

If your home is damaged or destroyed during the term of your agreement with Splitero, you’re responsible for repurchasing the home equity investment. Homeowners are required to maintain adequate home insurance to cover such instances. Review your contract for the specific terms related to property damage.

What happens if I die or become permanently disabled?

In the unfortunate event that you die or become permanently disabled, the responsibility to repurchase Splitero’s investment usually falls to your estate or spouse, if applicable. Make sure to consult your agreement for specific details and consult an estate planning attorney for personalized advice.

How we rated Splitero

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity sharing agreements. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.
We compared Splitero to several home equity investment companies, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.

Product	Rating
Splitero home equity sharing agreement	4.5/5