What is a home equity sharing agreement?

A home equity sharing agreement (also called a home equity investment or HEI) lets you access a lump sum of cash from your home equity in exchange for giving the investor a percentage of your home's future appreciation. You receive cash now, make NO monthly payments, and settle up when you sell or refinance (typically within 10–30 years). Example: Hometap gives you $50,000 today; in exchange, when you sell in 5 years, they receive 15% of your home's appreciated value. If your home appreciated by $100,000, they receive $15,000 at settlement.

Is a Hometap equity investment a good idea?

Hometap is a good fit for: homeowners who need cash but can't qualify for a HELOC (low income, self-employed), those who want $0 monthly payments, and those confident their home won't appreciate dramatically before settlement. Hometap is a bad fit for: homeowners in rapidly appreciating markets (you give up too much upside), those who plan to stay in the home long-term (appreciation cost compounds), and those who can qualify for a conventional HELOC at 7.5–9.5% (HELOC will typically be cheaper in total cost).

What are the real costs of equity sharing vs a HELOC?

HELOC: 7.5–9.5% annual interest, monthly payments required, no appreciation sharing. Total cost example: $50,000 HELOC at 8.5% for 5 years = $21,250 in interest payments. Equity sharing (Hometap): no monthly payments, but 15–20% appreciation share. If home appreciates $150,000 in 5 years, you owe $22,500–$30,000 at settlement — similar to HELOC interest cost. In rapidly appreciating markets, equity sharing can cost significantly more than a HELOC.

What credit score is needed for Hometap or Unison?

Hometap: minimum 500 credit score (much lower than HELOC's typical 680+). Unison: minimum 620 credit score. Point: minimum 500 credit score. This is one of the key advantages of equity sharing over HELOCs — homeowners with lower credit scores or inconsistent income can access equity that conventional lenders won't touch. Income verification is minimal — these are equity-based (not income-based) products.

Can I buy out the equity share early?

Yes — all major equity sharing providers allow early buyout. Hometap: can settle anytime within 10 years. Unison: can settle anytime within 30 years. Point: can settle anytime within 30 years. To calculate your buyout cost: they will appraise your home at that time and apply their appreciation share to the price change. If your home has not appreciated, you may owe close to the original investment amount. Some providers have minimum settlement amounts regardless of appreciation.

Equity Sharing Agreement 2026: Hometap vs Unison vs HELOC

Full Provider Comparison: Hometap vs Unison vs Point vs HELOC

Provider	Max Cash	Min Credit	Term	Cost	Monthly Payment
Hometap	Up to 25% of home value	500	10 years	15–20%	$0
Unison	Up to $500,000	620	30 years	35–50% of gain	$0
Point	Up to $500,000	500	30 years	15–35%	$0
HELOC	Up to 85% CLTV	680+	Draw 10yr + Repay 20yr	None — keep all equity	✅ Required (interest-only draw)
Home Equity Loan	Up to 85% CLTV	680+	5–30 years	None	✅ Required (fixed P&I)

Real Cost Comparison: $50,000 Cash Over 7 Years

Which option actually costs less depends on how much your home appreciates:

Home Appreciation (7yr)	Hometap Cost (17% share)	HELOC Cost (8.5%, 7yr)	Winner
$50,000 (2.5%/yr)	$8,500	$29,750 interest	Hometap (saves $21K)
$100,000 (4.8%/yr)	$17,000	$29,750 interest	Hometap (saves $13K)
$150,000 (6.8%/yr)	$25,500	$29,750 interest	Hometap (saves $4K)
$200,000 (8.4%/yr)	$34,000	$29,750 interest	HELOC (saves $4K)
$300,000 (11%/yr)	$51,000	$29,750 interest	HELOC (saves $21K)

Based on $500K home value, $50K cash from Hometap, HELOC interest-only payments only. Assumes home appreciation on full $500K value.

Who Should Use Equity Sharing (and Who Shouldn't)

Ideal Candidates for Equity Sharing

Self-employed or 1099 workers who can't qualify for a HELOC due to income documentation issues — equity sharing has no income verification
Credit scores below 680 — HELOC typically requires 680+; Hometap/Point accept 500+
Homeowners who cannot afford monthly payments — if adding a HELOC payment would strain your budget, $0 payments are genuinely valuable
Buyers in stable or slowly appreciating markets — if your home appreciates 3-5%/year, equity sharing often costs less than HELOC interest

Who Should Use a HELOC Instead

Good credit (680+) and stable income — you can qualify for a HELOC at 7.5–9.5% and keep 100% of appreciation
Homeowners in hot markets (California, NYC, South Florida) where 8–12% annual appreciation is common — appreciation sharing will cost much more than HELOC interest
Long-term owners — the longer you hold, the more expensive equity sharing becomes as appreciation compounds

If you have decent credit, compare HELOC rates first — a conventional HELOC lets you keep all your equity gains.

Get Your Options Side-by-Side

Get a Hometap estimate AND compare HELOC rates in the same day. The difference in total cost can be $20,000+ over 7 years depending on your market.

Get Hometap Estimate ($0 payments)Compare HELOC Rates (Keep Equity)

Hometap vs Unison: Key Differences

Hometap is better for shorter holds and smaller investments (up to 25% of home value, 10-year term). Unison offers larger investments and a 30-year term — but takes a larger share of appreciation (35–50% of gain vs Hometap's 15–20%). Point is a good middle ground, accepting 500+ credit with a 30-year term.

For most homeowners who need a shorter-term infusion of cash, Hometap's 10-year term and lower appreciation share makes it the most popular and cost-effective option. If you qualify for a HELOC, compare HELOC rates first — keeping all your appreciation upside is almost always better.

Home Equity Sharing Agreement 2026: Hometap vs Unison vs HELOC — Which Gets You More Cash?

The Core Trade-Off