Only available in 28 states. Unison is currently available in Arizona, California, Colorado, Delaware, Florida, Illinois, Indiana, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, 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.Unison is our pick as the best overall because it is available in more states than any of its competitors, shares in the loss if your home depreciates, and has a quick online form where you can get a cash estimate without impacting your credit. Get a cash estimate in just 60 seconds with no impact on your creditįounded 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.Best for long terms with poor credit: Point.Best homeowner protection program: Noah.Best home equity sharing companiesĪfter hours of research, we identified five companies as our picks for the best home equity sharing companies. The amount your home appreciated or depreciated is based upon the adjusted home value. *Most companies add a valuation adjustment to the appraisal of your home for risk purposes.
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.
#UNISON HOME PLUS#
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.Īn 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. 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). In return, the investing company gets a percentage of the future value of your home. Benefits and downsides of a home equity sharing agreementĪ 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.How does a shared equity agreement work?.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. 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. 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.