⚡ HOME EQUITY SHARING vs HELOC — Which Is Cheaper?
🏠 Equity Sharing (Hometap)
- • Get $50K, give up 10% of home
- • Home rises $200K → owe $20K profit share
- • Total payback: $50K + $20K = $70K
- • Effective cost: ~8–12%/yr (if held 5-10 yrs)
- ✅ Zero monthly payments
💳 HELOC (Variable Rate)
- • Borrow $50K at 8.5% variable
- • Interest-only: $354/month for 10 years
- • Total interest paid: ~$42,480
- • Payback: $50K + $42.5K = $92.5K total
- ⚠️ Monthly payment required
Conclusion: If you qualify for a HELOC and can make payments — HELOC is usually cheaper. Equity sharing wins only when you can't qualify for debt or truly need zero payments.
Best Home Equity Sharing Companies 2026: Hometap vs Unlock vs Unison vs Point
With mortgage rates at 7%+, millions of homeowners with low-rate mortgages refuse to refinance. Home equity investment companies let you tap equity without monthly payments or rate increases — you sell a share of future appreciation instead. See how much you can get from Hometap in 60 seconds.
Side-by-Side Comparison: All 4 Companies
| Company | Max Payout | Min Credit | Term | States | Equity Share |
|---|---|---|---|---|---|
| Hometap | Up to 30% of home value | 500 | 10 years | 19 states | 15–25% of future value |
| Unlock | Up to 43.5% of home value | 500 | Up to 10 years | 25+ states | 3.2–5% per year of investment |
| Point | Up to $4 million | 600 | Up to 30 years | 26 states | 15–35% of future value |
| Unison | Up to 17.5% of home value | 620 | 30 years | 29 states | 40% of appreciation only (not value) |
Hometap
Fast equity investment with 10-year term and 500 min credit score
Max Payout
Up to 30% of home value
Min Credit
500
Term
10 years
Equity Share
15–25% of future value
✅ Pros
- ✅ 500 minimum credit score
- ✅ Fast funding (3 weeks)
- ✅ No monthly payments ever
- ✅ $15K–$600K investment range
- ✅ Can be used for any purpose
⚠️ Cons
- ⚠️ Only 19 states
- ⚠️ Premium on future appreciation
- ⚠️ 10-year term buyout required
- ⚠️ Not available in NY, TX, IL
Unlock
Widest state coverage with 500 credit score and up to 10-year term
Max Payout
Up to 43.5% of home value
Min Credit
500
Term
Up to 10 years
Equity Share
3.2–5% per year of investment
✅ Pros
- ✅ 25+ states available
- ✅ 500 minimum credit
- ✅ Pricing based on investment share (not flat %)
- ✅ Transparent fee structure
- ✅ No income requirements
⚠️ Cons
- ⚠️ Equity cost compounds over time
- ⚠️ Larger share needed for lower credit
- ⚠️ Complex pricing to compare
- ⚠️ Newer company (2021)
Point
Up to $4M investment with 30-year terms for high-value homes
Max Payout
Up to $4 million
Min Credit
600
Term
Up to 30 years
Equity Share
15–35% of future value
✅ Pros
- ✅ Handles up to $4M investments
- ✅ 30-year term (longest available)
- ✅ Good for luxury markets
- ✅ 26 states available
- ✅ Risk adjustment cap benefits buyer
⚠️ Cons
- ⚠️ 600 minimum credit (higher than Hometap)
- ⚠️ Higher equity share percentage
- ⚠️ Luxury/high-value focus limits mass appeal
- ⚠️ Complex risk adjustment calculations
Unison
60/40 appreciation split — Unison takes less equity if home appreciates
Max Payout
Up to 17.5% of home value
Min Credit
620
Term
30 years
Equity Share
40% of appreciation only (not value)
✅ Pros
- ✅ 29 states (widest coverage)
- ✅ Takes only 40% of appreciation
- ✅ 30-year term
- ✅ Cap on Unison's upside protects you in rising markets
⚠️ Cons
- ⚠️ 620 minimum credit (highest)
- ⚠️ Smaller payout (max 17.5% of value)
- ⚠️ Complex co-investment model
- ⚠️ Older company but less flexible than Hometap
When to Choose Equity Sharing vs a HELOC
Choose Equity Sharing When:
- • Credit score under 620 (can't qualify for HELOC)
- • Self-employed with irregular income (hard to qualify for debt)
- • Want zero monthly payment — permanently
- • Retired and need cash without debt burden
- • Plan to sell in 3-7 years anyway (equity cost is lower if home doesn't appreciate much)
Choose a HELOC When:
- • Credit 680+ and stable income
- • Home likely to appreciate significantly
- • Want to minimize long-term cost
- • Need revolving credit (use/repay/reuse)
- • Can make monthly payments comfortably
For the majority of homeowners with decent credit: compare HELOC rates first — the total cost is usually lower than equity sharing over a 10-year period.
Access Your Equity — With or Without Monthly Payments
Not sure which path is right? Get a Hometap equity investment offer (no obligation) AND compare HELOC rates — then choose whichever costs less for your situation.
Home Equity Sharing FAQ
What is home equity sharing and how does it work?
Home equity sharing (also called a home equity investment or HEI) lets you access cash by selling a percentage of your home's future appreciation to an investor. Unlike a loan, there are NO monthly payments. Instead, the investor receives their money back — plus a share of any appreciation — when you sell the home, refinance, or at the end of the agreement term (typically 10-30 years). Example: You sell 10% of your home's future value to Hometap in exchange for $50,000 cash today. In 10 years, if your home appreciated from $500K to $700K, you owe Hometap back: $50,000 + 10% of $700K = $50,000 + $70,000 = $120,000 at buyout.
What are the downsides of home equity sharing?
Disadvantages of home equity sharing: (1) Expensive if home appreciates significantly — giving up 10-20% of a $200K gain is $20-40K. (2) Effective cost often equals 8-15% annually when calculated over the hold period. (3) You must settle at end of term (10-30 years) regardless of market conditions. (4) Limits what you can do with the property (some restrictions on renovations). (5) Not available in all states. (6) Complex exit — if you can't sell or refinance, the buyout may be forced at an inconvenient time. Best for: homeowners who truly cannot qualify for any debt (bad credit, irregular income) or who want to avoid monthly payments entirely.
What is the minimum credit score for home equity sharing?
Home equity sharing companies have much lower credit requirements than traditional lenders: Hometap: 500 minimum credit score (exceptionally low). Unlock: 500 minimum. Point: 600 minimum. Unison: 620 minimum. Compare to: HELOC — typically 680+, Home equity loan — 620+. The lower credit requirement is because these are not debt instruments — the company is investing in your home's equity, not lending money. If the property appreciates, they profit regardless of your credit. However, low credit scores may result in the company requiring a larger equity share or lower payout.
Hometap vs Unlock vs Unison — which is the best home equity sharing company?
Hometap: Best for flexibility (10-year term, 500 credit, fast). Funded $1B+ in investments. Available in 19 states. Takes 15-25% equity share typically. Unlock: Best for bad credit (500 score, available in 25+ states). Term: up to 10 years. Takes 3.2-5% per year in equity. Point: Best for luxury homes (up to $4M, available in 26 states). Term: up to 30 years. Takes 15-35% equity share. Unison: Best for co-investing (60/40 split on appreciation, lowest equity share). Term: 30 years. Available in 29 states. For most borrowers who qualify for a HELOC: a HELOC is cheaper. Choose equity sharing only if you cannot qualify for debt financing or truly want zero monthly payments.
Related Home Equity Guides
Meet David
Refinance & Rate Specialist
David Rodriguez is a seasoned refinancing expert with over 10 years of experience in mortgage rate analysis and market trend forecasting. As a Certified Rate Lock Specialist, he has saved homeowners millions in interest payments through strategic refinancing timing. His expertise in Federal Reserve policy impact and mortgage-backed securities makes him a go-to expert for rate predictions and refinancing strategies.
EXPERTISE:
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Saved clients $50M+ in interest payments