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The top 5 home equity agreement companies

Many home equity sharing companies can help you obtain funding, but which ones are right for you? We’ll compare the best home equity sharing companies.

Lindsay VanSomeren
February 5, 2024
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Home equity agreements can be a powerful addition to your financial toolkit. These agreements offer flexible funding with no monthly payments in exchange for a slice of your home equity further down the road. Given that homeowners are sitting on more equity than ever, you may want to investigate partnering with home equity agreement companies the next time you need to borrow money.

Equity sharing companies aren’t as abundant as, say, lenders offering HELOCs or home equity loans. That can make it easier to narrow down your options, but there are still important differences between companies. We’ll compare the best home equity sharing companies to help you decide which one will suit your needs.

What is equity sharing?

Home equity sharing companies all work by offering you a lump sum of funds in exchange for a slice of your home equity at a later date. Home equity agreements — also known as equity sharing agreements or home equity investments — are different from traditional debt products, and so qualifying is often easier. A major difference between home equity investment companies, however, is how your repayment amount is calculated. 

Equity sharing model: total home value vs. appreciation value

Rather than repaying your funds with monthly payments as per a debt, you’ll make one single payment at the end of a 10 or 30-year term. The amount you have to repay depends on whether your home equity agreement company uses a share of total value or a share of appreciation model. 

Home equity sharing companies that use a “share of total value” model generally calculate your repayment amount as a percentage of your home’s value at the time you pay it off. For example, if a home equity agreement company charges 20% of your home’s total value as repayment, you’ll repay $20,000 for every $100,000’ of your home’s value at the end of the term. 

Conversely, home equity investment companies that use a “share of appreciation” model calculate your repayment in two parts: the amount you originally borrowed, plus a percentage of the amount of appreciation your home has seen since the start of the contract. For example, let’s say you borrowed $100,000 and you agree to share 30% of your home’s future appreciation with the company. If your home grew from the agreed-upon starting value by $100,00, you’d repay a total of $130,000 — the initial $100,000 you borrowed, plus $30,000 for the appreciation. 

Appraisal adjustments and repayment limits

Another difference between home equity investment companies is the specific adjustments they apply to your home’s value at the beginning and end of the terms, which impacts how much you may have to pay. Home equity agreement companies often increase or decrease your home’s value for pricing purposes to adjust for various factors such as remodeling your home or protecting against crashes in the housing market. Other companies place limits on the amount you have to repay to protect you against upswings in the housing market. 

Home equity agreement companies

All home equity-sharing companies work similarly, but some differences can make one a better option for pulling equity out of your home, depending on your situation. Here are the best home equity agreement companies around today, and who they’re best for:

Point

Best for: Families

Point is one of the largest home equity investment companies in the United States, having partnered with over 10,000 homeowners since 2015. It’s also one of the most widely available home equity sharing providers, operating in 25 states. Point also offers a 30-year term. 

One of Point’s unique benefits, however, is that it’s one of the few companies that allows heirs to assume your home equity investment if you pass away during the term. Most other companies require the investment to be repaid at this time, but Point works with your heirs so they can keep the home and continue the original agreement until the term length comes to an end.  

Investment amount: $25,000 – $500,000

Credit score required: 500

Repayment structure: Share of appreciation; percentage determined by investment size and credit history. 

Term length: 30 years

Fees: 3.9% origination fee, plus closing costs.

Repayment limits: Applies a percentage-based cap limiting the amount you have to repay. 

Appraisal adjustments: Risk adjustments to lower the appraised starting value of the home by 29%. Rental adjustments to increase Point’s share of appreciation by 10% if you decide to rent out your home.

home-equity-agreement

Hometap

Best for: Large funding needs

Currently available in 16 states, Hometap’s maximum investment amount is a bit larger than the other players in the space – by $100,000. Conversely, qualifying with Hometap may be a bit tougher for some people than with other home equity agreement companies. You’ll need to have at least 25% equity in your home, and while you can get approved with a credit score as low as 500, most homeowners will need a score of 600 or higher. 

Investment amount: Up to $600,000

Credit score required: 500

Repayment structure: Share of total home value; 15% to 20%.

Term length: 10 years

Fees: 3% origination fee, plus closing costs. 

Repayment limits: Applies a cap limiting the amount you have to repay, up to an equivalent APR of 20%. 

Appraisal adjustments: Improvement adjustments to discount the equity gain from home improvement projects.

Unlock

Best for: Flexible home equity agreements

Unlock is also one of the only home equity sharing companies that allow partial buybacks; if you prefer to pay off your investment in portions rather than one balloon payment, Unlock may be a good option for you. Unlock also allows you to borrow money against your rental property. This can be an easier way for real estate investors to leverage their properties. 

Investment amount: Up to $500,000

Credit score required: 500

Repayment structure: Share of total value; usually 20%.

Term length: 10 years

Fees: 4.9% origination fee, plus closing costs. 

Repayment limits: Applies a cap limiting the amount you have to repay; amount not specified. 

Appraisal adjustments: Maintenance adjustments to account for overdue maintenance which decreases home value. Improvement adjustments to discount the equity gain from home improvement projects.

Unison

Best for: Widest availability

Unison is one of the few home equity sharing companies available across most of the country, partnering with homeowners in 30 states. Like Point, Unison offers a 30-year term length which can be attractive to homeowners looking to build up their finances and credit before repaying their investment; however, Unison requires that partners have fairly good credit to begin with. In addition, if you pay back your funds early, Unison is one of the only home equity investment companies that will not share in any losses in your home value, meaning that you could be on the hook for a higher amount.

Investment amount: Up to $500,000

Credit score required: 620

Repayment structure: Share of appreciation; percentage amount not specified.

Term length: 30 years

Fees: 3.9% origination fee, plus closing costs.

Repayment limits: Applies a cap limiting the amount you have to repay; amount not specified. 

Appraisal adjustments: Risk adjustments to lower the appraised starting value of the home. Deferred maintenance adjustments to account for overdue maintenance which decreases home value. Remodeling adjustments to discount the equity gain from home improvement projects.

Splitero

Best for: Homeowners with the poorest credit.

Splitero isn’t widely available, offering home equity sharing contracts in just five states along the West Coast. Homeowners who aren’t able to qualify with other equity sharing companies may be particularly interested in Splitero, one of the only companies that doesn’t set a minimum credit score. (Splitero will still check your credit, however, to look for certain bankruptcies within the past four years which can disqualify you.)

Investment amount: Up to 30% of your home’s value or $500,000, whichever is less.

Credit score required: No minimum requirement, but will check your credit.

Repayment structure: Share of appreciation; percentage amount not specified.

Term length: 30 years

Fees: 4.99% origination fee, plus closing costs.

Repayment limits: Applies a cap limiting the amount you have to repay; amount not specified. 

Appraisal adjustments: Risk adjustments to lower the appraised starting value of the home.

Final thoughts: Determining which is right for you 

If you are looking to access your home equity without monthly payments or onerous credit requirements, a shared equity product like a Home Equity Investment or home equity agreement may be the right fit for you. 

Get started today by seeing how much you can unlock with an HEI from Point, and don’t be afraid to comparison-shop with different home equity agreement companies to find the right features and pricing for you. 

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