A home equity investment can help you access the cash locked inside your house. Our Equity Sharing Agreement, is a specific type of HEI (Home Equity Investment), may offer a way to get this cash without taking on a new monthly loan payment. We provide cash upfront, and in exchange, we share in a portion of your home's future change in value when the agreement ends.
Imagine your child is getting ready to head off to college. You want to help them pay for school, but your regular savings are tight. Your home has gained a lot of value over the years, though. You might want to use that wealth to pay for tuition, but a traditional loan could add a heavy monthly bill to your household budget. That's where alternative options can help provide real flexibility.
What Is a Home Equity Investment?
A home equity investment is a broad term for getting cash from your property without using a standard bank loan. Many companies offer these products to homeowners who have built up value in their houses.
Instead of charging you interest every month, an investor gives you a lump sum of money. In return, they get a stake in what your house will be worth down the road. This can be a helpful option if you want to avoid adding another monthly bill to your life.
How Does an Equity Sharing Agreement Work?
Our primary product is the Equity Sharing Agreement (ESA). We designed the ESA to give you breathing room. Here's how the basic process works when we team up with you:
- Get Cash Upfront: We convert a portion of your home equity into cash that you can use right away.
- Zero Monthly Payments: You don't have to make monthly payments, and we don't charge any interest.
- Share the Future Value: We share with you in your home's future change in value.
- Keep Your Ownership: You stay the sole owner of your house and live in it just like before.
When we start the agreement, we apply a 5.0% risk adjustment to your home's appraised value to set the starting line. This helps handle the natural ups and downs of home appraisals. There's also a one-time 3.0% transaction fee taken out of your upfront cash at closing, and you'll cover normal third-party closing costs like appraisal fees.
How Is Our Agreement Different From a Regular Loan?
Traditional options like home equity loans or lines of credit can strain your budget. They force you to pay back the bank every single month, often with variable interest rates that can rise unexpectedly.
An ESA isn't debt. We act as an ally by standing beside you instead of acting like a regular lender.
- No Interest Rates: Regular loans charge you for borrowing money every month. We don't charge interest at all.
- No Added Monthly Strain: You can use your cash for your goals without worrying about a new monthly bill squeezing your wallet.
- Shared Risk: If your home loses value over the long run, we can share in that downside after the restriction period ends. With a bank loan, you always owe the full amount no matter what happens to the housing market.
What Happens When the Agreement Ends?
Our agreement can last for up to 30 years. You get to choose when to end it, which gives you great control over your family's future. The relationship usually ends in one of a few ways:
- Selling Your House: This is the most common path. When you sell, we receive our share from the sale proceeds.
- Buying Us Out: You can choose to buy out our share at any time without selling your home. This is called a Special Termination.
- Reaching 30 Years: If the 30-year term limit arrives, you can settle the agreement by selling or paying us for our interest.
It's important to know that we don't share in property value losses if you sell within the first five years or if you choose a buyout option. We want this to be a stable, long-term choice for your home.
How Can You Use the Cash From Your Home?
The cash you receive from an ESA belongs to you, and you can use it however you see fit. Homeowners often use these funds for major life goals:
- Paying for Education: You can handle college tuition costs without forcing your kids to take on massive student loans.
- Home Upgrades: You can fund a kitchen remodel or fix an old roof. Plus, with our remodeling adjustment, you keep 100% of the value added by your licensed renovations when the agreement ends.
- Starting a Business: You can use your trapped equity as seed money to grow a small business or side hustle.
- Clearing High-Interest Debt: You can wipe out expensive credit card balances to get a fresh financial start.
We're here to help you turn your paper wealth into real-world opportunities on your own timeline.
Disclaimer: This sponsored content is for informational purposes only and is not financial, legal, or tax advice. Unison’s Equity Sharing Agreement (ESA), offered through Unison Agreement Corp., provides cash upfront with no monthly payments or interest charges. In exchange, you share a percentage of your home’s future appreciation (or a limited portion of any depreciation) when the agreement ends (upon sale, refinance, buyout after 5 years, 30-year term, or death/default). If your home depreciates, Unison typically shares in a portion of the loss, subject to program limits—you may still owe the full advance amount. A lien is placed on your property, which may limit future refinancing options. There may be tax implications (e.g., potential recognition of income on forgiveness of advance if the home depreciates). No guarantees are made regarding home value changes or outcomes. For complete terms, eligibility, and details, visit unison.com. For traditional lending products, see Unison Mortgage Corp., NMLS #2574289. Always consult your own financial, legal, and tax professionals before proceeding.