Unlock Review: Get Cash and Control With Partial Payment Flexibility

Best for Partial Payments

4.5 _/5

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Home Equity Agreement

• Access $30,000 – $500,000 in home equity
• No monthly payments or interest charges
• Option to buy out Unlock’s share in partial payments over the term
• Get an estimate without affecting your credit score

• Origination fee of 4.9%
• Only available in 13 states*

*Available in Arizona, California, Florida, Michigan, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington State

Unlock stands out as the best home equity agreement for partial payments. It allows homeowners to make manageable payments over time rather than one lump sum.

With a minimum credit score requirement of 500, Unlock is accessible to those who may not qualify for traditional home equity loans, making it a flexible option for tapping into home equity without taking on debt.

How does Unlock work?

Unlock offers homeowners a way to tap into their home’s equity without incurring debt. Through an Unlock home equity agreement (HEA), you get cash upfront in exchange for a share of your home’s future value. When the term ends, you settle the balance by selling your home or buying out Unlock’s share.

What to know about Unlock’s HEA

Who’s eligible for a Unlock home equity agreement?

Eligibility for Unlock’s home equity agreement involves jumping through fewer hoops than a traditional loan. However, your property type, location, and credit score matter. 

Requirement	Details
Properties	Most residential real estate, including primary homes, second homes, and rental properties. No tenancy-in-common properties or mobile homes.
State of residence	AZ, CA, FL, MI, NJ, NC, OR, PA, SC, TN, UT, VA, and WA
Max loan-to-value	80%
Max debt-to-income	45%
Minimum credit score	500
Other requirements	Must maintain property, pay taxes and home insurance, and first-lien (primary) mortgage (if applicable)

How do you repay a home equity agreement from Unlock?

Repayment with Unlock differs from traditional loans. You won’t owe monthly payments, but you have the option to make partial buyout payments throughout the 10-year term.

At the end of the 10-year term, your options are:

1. Sell your home: You can sell your property and pay Unlock its share from the sale proceeds.
2. Buy out Unlock: You can end your agreement by buying Unlock’s stake in your property at its then-current value.

Your repayment amount will vary based on your home’s value at the end of the term. If your property’s value has increased, so will Unlock’s share.

How much does Unlock cost?

Unlock charges an origination fee of 4.9%, deducted at closing, along with transaction expenses. These costs include fees for appraisal, title, and other third-party services. You can pay the fees out of pocket or subtract them from the investment payment from Unlock.

How is the final payment calculated?

Several factors affect your final payment:

1. Investment payment: The initial cash amount you get from Unlock.
2. Starting home value: The appraised value of your home when the agreement starts.
3. Investment percentage: The investment payment expressed as a percentage of the starting home value.
4. Exchange rate: Multiply this rate by the investment percentage to derive the percentage of your home’s value Unlock receives. It’s often set at 2.0 but can vary based on your situation (see below).
5. Unlock percentage: This is the portion of your home’s future value you’ll share with Unlock.

Unlock HEA example

Here’s an example Unlock provides to illustrate how final repayment works:

• You receive an investment payment of $60,00 on a home valued at $600,000.
• This yields an investment percentage of 10%. 
• The exchange rate is 2.0.
• So your Unlock percentage is 20%.

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Scenario 1: Your home value increases

You decide to sell your house 10 years later, and its value has increased by an average of about 3% per year to an ending home value of $806,000.  

At closing, Unlock’s share of the sale proceeds (called the Unlock share) is calculated as: 

Ending home value x Unlock percentage = Unlock share

$806,000 x 20% = $161,200 

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Scenario 2: Your home value decreases

You sell your house 10 years later, but this time, your home’s value has decreased by 10% to $540,000. The Unlock share is calculated as: 

Ending home value x Unlock percentage = Unlock share

$540,000 x 20% = $108,000 

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Scenario 3: Your home value doesn’t change

Here we’ll assume you sell 10 years later and your home’s value is $600,000. The Unlock share is calculated as: 

Ending home value x Unlock percentage = Unlock share

$600,000 x 20% =  $120,000

Note that the exchange rate can vary and that plays a large role in your total cost. Unlock provides the following examples:

• Owner-occupied homes: 2.05, which translates to a 20.5% Unlock percentage
• Rental or high-risk owner-occupied: 2.1, resulting in a 21% Unlock percentage
• Higher risk: 2.15, leading to a 21.5% Unlock percentage

Unlock also has an annualized cost limit of 19.9%, which keeps the yearly growth of your balance in check. If this limit applies at the end of your term, it will determine your final payment instead of the exchange rate.

Does Unlock control my home or its condition?

Unlock doesn’t have direct control over your home—ownership and decision-making stay with you. However, there are a few guidelines on home improvements and maintenance to keep in mind.

Making home improvements

You’re free to make improvements, and Unlock even offers an “improvement adjustment.” For example, if renovations add $40,000 in value, this amount could be excluded from what you owe Unlock at the end of the term if approved.

Maintaining your home

Unlock expects homeowners to keep up with maintenance. If neglect—say extensive termite damage—lowers your home’s value, Unlock can adjust the ending value upward before calculating its share, ensuring it’s not affected by property neglect.

How to calculate the shareable value

The final shareable value Unlock is entitled to is calculated like this:

Ending home value – Improvement adjustment + Maintenance adjustment = Unlock’s shareable value

Expectations

While periodic inspections are not required, Unlock expects the property to remain in good condition, and a maintenance adjustment may apply if it is not.

Pros and cons of Unlock

Pros

• Partial payouts allowed

  Unlock permits partial payouts, unlike most competitors, who require lump-sum payments.

• Lower credit score requirement

  Unlock’s lenient credit requirements offer an avenue for those who may not qualify for traditional home equity loans or lines of credit (HELOCs).

• Dedicated home equity consultant

  A dedicated home equity consultant guides you through the process, adding a personalized touch.

Cons

• State limitations

  Unlock services are restricted to 13 states, limiting accessibility for many homeowners.

• Property type limitations

  The service is constrained to certain property types, which might not include everyone’s living situation.

• Limited term length

  Unlock offers just one 10-year term.

Unlock alternatives

If you’re unsure whether Unlock is the right company for you but are confident you want to explore HEAs, check out our other highest-rated HEA companies:

Hometap is available in the following 19 states: Arizona, California, District of Columbia, Indiana, Florida, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Utah, Virginia, and Washington.

Point is available in 23 states: Arizona, California, Colorado, Florida, Hawaii, Illinois, Indiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Washington, D.C.

If you want to explore all your home equity options, take a look at our list of reviewed home equity lenders.

Is Unlock a reputable lender?

Source	Customer rating	Number of reviews
Trustpilot	4.7/5	986
Better Business Bureau	3.84/5	68
Google	4.5/5	64

Unlock earns positive feedback from customers. Trustpilot ratings highlight a straightforward and relatively stress-free process, along with good customer service. 

The Better Business Bureau (BBB) gives Unlock an “A” rating and accreditation, with reviewers who were denied a HELOC sharing that Unlock helped them qualify for much-needed cash.

Several Google reviews cite poor customer service and lower-than-expected home appraisals.

Does Unlock have a customer service team?

Unlock’s customer service team operates out of New York City.

Ways to contact Unlock:

• Email: [email protected]
• Phone number: 1-800-560-3450 (8:30 a.m. – 5:30 p.m. Pacific time)
• Mailing Address: 5 Bryant Park, Floor 23 New York, NY 10018
• Social Media:
  • Facebook
  • LinkedIn
  • X (formerly Twitter)

How to apply for a Unlock home equity agreement

Unlock’s application process is simple and quick. Getting an estimate takes just two minutes, won’t harm your credit score, and gives you a clearer sense of your options without any obligations.

Here are the steps to apply: 

1. Get an estimate: Fill out an online form to get an estimate.

2. Apply online: Once you decide to proceed, Unlock assigns a dedicated home equity consultant to guide you through the application process. Expect this step to take a day or two.
3. Review your offer: After reviewing your independent third-party appraisal and title report, Unlock prepares an offer for you. This often happens within a week.
4. Your home equity agreement funds: After you sign the closing documents, expect a secure wire transfer within a few days. Be sure you have all the necessary identification and property-related documents to speed up the process.

This streamlined process can expedite funding and minimize stress.

How do other home equity products compare to Unlock?

Unlock offers a distinct way to tap into your home’s equity without monthly payments or interest rates. Unlike a home equity line of credit (HELOC) or a home equity loan, both of which require monthly repayments, Unlock shares in the future value of your home.

A reverse mortgage doesn’t require monthly payments, but you must be at least 62 years old to qualify, and reverse mortgages can have more complex terms and higher fees. 

Unlock FAQ

How long does it take to get funds from Unlock?

Once you’ve signed the closing documents, expect a secure wire transfer within a few days. The streamlined process is designed to get the funds into your hands as soon as possible.

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

Unlock doesn’t require you to specify what you’ll use the funds for during the application process. There’s no question about this on the application, and your intended use doesn’t affect your eligibility. The focus is more on your property value and other qualifying criteria, giving you the freedom to use the funds as you see fit.

Are there any tax implications for using Unlock?

A home equity investment from Unlock doesn’t have the same tax implications as a home equity loan or HELOC, where interest payments could be tax-deductible. There’s no immediate tax impact when you receive the funds. 

However, when it comes time to settle the investment, you may have capital gains tax obligations. We recommend consulting with a tax professional to understand the implications for your situation.

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

If your home suffers significant damage, such as from a natural disaster, it could affect the home’s value and, by extension, your agreement with Unlock. Generally, you would need to repair the home using your insurance payouts, personal funds, or additional financing to maintain the property’s value.

What happens if I die or become permanently disabled?

If you pass away or become disabled, the home equity agreement typically becomes due. This means your estate would be responsible for settling the account. In some cases, a family member can assume the agreement, but that would require approval from Unlock. Planning for these scenarios in advance can alleviate potential stresses for your loved ones.

How we rated Unlock

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home equity products. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared Unlock to several home equity agreement 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	Best for	Our rating
Unlock home equity agreement	Best for partial payments	4.5/5