Shared Equity Agreements vs HELOC 2026:
Hometap, Point & Unison vs Traditional Home Equity — The Brutal Comparison
$0/mo
HEI monthly payment
8.5%+
HELOC interest rate
No min
HEI credit score req
620+
HELOC credit score req
⚡ The Core Tradeoff in One Sentence:
With a HELOC, you pay interest every month but keep 100% of your home's appreciation. With a shared equity agreement (Hometap, Point, Unison), you pay nothing monthly but give up 15–40% of your home's future value increase. Which is cheaper depends entirely on how much your home appreciates.
🏆 Hometap vs Point vs Unison: Ranked for 2026
Hometap
Max amount: $600,000
Term: 10 years
Equity share: 15–30%
Credit req: No minimum
Min equity: 25%
States: 18 states
Best for most homeowners
Get Hometap Offer →Point
Max amount: $500,000
Term: 30 years
Equity share: 15–40%
Credit req: No minimum
Min equity: 20%
States: 28 states
Best if you want maximum time
Get Point Offer →Unison
Max amount: $500,000
Term: 30 years
Equity share: Up to 15%
Credit req: 620+
Min equity: 20%
States: 29 states
Best if home will appreciate a lot
Get Unison Offer →💰 The Real Cost Comparison: 5 Scenarios That Show Who Wins
These scenarios use a $500K home, $100K cash accessed. HELOC at 9.5%. Hometap at 25% equity share. See who actually costs less in each case.
Scenario 1: Slow appreciation (1%/yr, sell in 10 years)
HELOC Total Cost:
$95,000 (interest) + $100K repaid = $195K total
Hometap Total Cost:
25% × $52,311 = $13,078 + $100K repaid = $113K total
Scenario 2: Average appreciation (4%/yr, sell in 10 years)
HELOC Total Cost:
$95,000 (interest) + $100K repaid = $195K total
Hometap Total Cost:
25% × $240,122 = $60,031 + $100K repaid = $160K total
Scenario 3: Strong appreciation (6%/yr, sell in 10 years)
HELOC Total Cost:
$95,000 (interest) + $100K repaid = $195K total
Hometap Total Cost:
25% × $395,424 = $98,856 + $100K repaid = $199K total
Scenario 4: Hot market (9%/yr, sell in 10 years)
HELOC Total Cost:
$95,000 (interest) + $100K repaid = $195K total
Hometap Total Cost:
25% × $684,363 = $171,091 + $100K repaid = $271K total
Scenario 5: Bad credit (under 600) — HELOC not available
HELOC Total Cost:
NOT AVAILABLE (bank denied)
Hometap Total Cost:
Hometap approves — $100K in hand
📌 The Rule of Thumb:
If your market will appreciate more than 6%/year: choose HELOC (you keep the upside). If appreciation will be under 5%/year — or if you have bad credit — a shared equity agreement typically costs less.
📋 Head-to-Head: Shared Equity vs HELOC — Every Feature
| Feature | Hometap / Point / Unison | HELOC | Winner |
|---|---|---|---|
| Monthly payment | $0 (zero payments) | $700–$1,200/mo on $100K | HEI |
| Interest rate | None — equity share | 8.5%–12% variable | HEI |
| Credit score required | None (Hometap/Point) / 620 (Unison) | 620–680 minimum | HEI |
| Income verification | None required | Full income docs required | HEI |
| Effect on DTI | Zero (not a loan) | Raises your DTI | HEI |
| If home appreciates fast | Expensive (you give up appreciation) | You keep all upside | HELOC |
| If home appreciates slow | Cost-effective (small % share) | Interest piles up regardless | HEI |
| Revolving / re-draw | No — one-time lump sum | Yes — draw as needed | HELOC |
| Tax deductibility | Not deductible | Interest may be deductible | HELOC |
| Max amount | Up to $600K | Up to 85% LTV | Tie |
| Speed of funding | 3–5 weeks | 2–6 weeks | Tie |
| Approval if credit is poor | Yes — no credit minimum | Often declined under 620 | HEI |
Get Offers for Both — Then Choose
The smart move: get a Hometap offer AND a HELOC quote. Compare the actual numbers for your specific home and equity. Free, no obligation, no credit pull required to start.
Who Should Choose What: Decision Guide
Choose Shared Equity (HEI) if:
- ✓Credit score under 620
- ✓Income is too low/irregular for HELOC payments
- ✓On fixed income or retirement
- ✓You believe home appreciation will be modest (under 5%/yr)
- ✓You need $300K+ and can't qualify for that HELOC amount
- ✓Your DTI is already high and you can't add monthly debt
- ✓You want the simplest, fastest process
Choose HELOC if:
- ✓Credit score 680+ with stable income
- ✓You believe home will appreciate 6%+/year
- ✓You need revolving access (multiple draws over time)
- ✓You plan to pay it off in under 5 years
- ✓You want the mortgage interest deduction benefit
- ✓You're doing home improvements that will increase home value
- ✓You want to keep 100% of future appreciation
Shared Equity vs HELOC FAQ 2026
Q: Can I get a shared equity agreement if I already have a HELOC?
Yes, in most cases. Hometap and Point can be placed in second or third lien position behind your first mortgage and an existing HELOC. However, they need the combined LTV to still be within their limits (typically 75–80% max). Example: $500K home, $250K first mortgage + $50K HELOC = $300K total debt (60% LTV). A Hometap investment is possible since LTV is under 75%.
Q: What happens with a shared equity agreement if I sell my house?
At sale, the equity investment company receives their share of the appreciation from closing proceeds before you get your net proceeds. If you sell for less than you paid (home declined in value), Hometap and Point protect you — they share in the loss as well, so you only repay the original investment amount minus the loss share. If your home was worth $500K, you got $100K from Hometap, and you sell for $450K, Hometap actually receives less than $100K back because they share in the depreciation too.
Q: Are shared equity agreements available in all 50 states?
No. Hometap is available in 18 states. Point covers 28 states. Unison covers 29 states. If you're in a state not covered by any of the three, your options are HELOC, home equity loan, or cash-out refinance. Growing availability: all three are expanding and have added states in 2025–2026. Check their current availability map before assuming you qualify.
Get All Your Equity Access Options in One Place
Compare Hometap, HELOCs, and home equity loans side by side. See real numbers for your home and make the right choice for your financial situation.
Compare All Home Equity Options →Free • No credit pull • All options in one place
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