Home equity investments have surged in popularity as traditional lending has tightened in today’s high-interest rate environment, leaving many homeowners with substantial built-up equity but limited access to affordable financing.
However, the tradeoffs can be severe. This is our comprehensive review of Splitero, one of the newer players in this rapidly evolving industry.
Summary: Splitero offers a lump sum of cash through a home equity investment agreement, legally structured as an option contract rather than a loan. There are no monthly payments, no new debt, and no income or employment requirements. In exchange, you agree to repay the greater of two amounts when you sell, refinance, or buy out the agreement:
- A share of your home's future appreciation above a preset threshold—typically 38% of the gain above 82% to 88% of your home's appraised starting value.
- A capped return equal to a 19.99% annualized compound rate.
Although this model avoids traditional underwriting hurdles, the long-term costs can be substantial—especially if your home appreciates slowly or the agreement is held for many years.
Example: If you're approved for $100,000, Splitero takes a 4.99% fee upfront (about $5,000), plus some closing costs. That means you'd actually get around $95,000 in cash. If your home goes up in value by 5% per year and you repay after 7 years, you might owe between $175,000 and $185,000. The exact amount depends on how much your home appreciated and whether you hit the 19.99% annual cap.
R.J. Weiss CFP® Says: Traditional financing like HELOCs will almost always cost significantly less than Splitero's or any home equity investment. This should only be considered as an absolute last resort after exhausting all other options.
Best for: Homeowners with significant equity who don't qualify for traditional financing and have a strong plan to repay within 3 to 10 years. This strategy is most appropriate for those who understand the tradeoff between flexibility now and reduced equity later.
- No income or job requirements
- Credit scores as low as 500
- 19.99% annual cap on Splitero’s return
- Agreements can last up to 30-years for flexibility
- 4.99% origination fee (min. $1,500)
- Renovation gains must be shared
- Repayment capped at 19.99% annually is higher than some alternatives
- Operational disruptions and limited company history
Key Facts about Splitero
| Category | Details |
| Maximum Cash Amount | Up to $500,000 or 25% of home value |
| Minimum/Maximum | $50,000 minimum, $500,000 maximum |
| Processing Fee | 4.99% origination fee + appraisal, title, and escrow fees |
| Agreement Length | The term matches the remaining mortgage length (10–30 years). |
| Share Calculation | Typically 38% of appreciation above 82–88% threshold |
| Starting Value | Threshold set at 82–88% of appraised value |
| Maximum Returns | Capped at 19.99% annual compound return |
| Early Termination | Can buy out anytime without penalty |
| Property Types | Single-family homes, condos, townhomes, 2–4 units |
| Occupancy Requirement | Must be owner-occupied at origination |
| Credit Score | Minimum 500 |
| Income Requirements | No income or employment requirements |
| Equity Requirement | Must retain 30% equity post-funding (max 70% CLTV) |
| Property Control | Homeowner retains full ownership and control |
| Title | Splitero records lien but is not added to title |
| Eligible States | AZ, CA, CO, FL, NV, NJ, OH, OR, PA, SC, TN, UT, VA, WA |
| Trust Properties | Trusts are eligible subject to approval |
| Remodeling | Value from renovations is shared; no exclusions stated |
About Splitero
Splitero launched in 2021 as a home equity investment startup and secured over $1 billion in committed capital, including $750 million from publicly traded Redwood Trust. According to their website, they’ve funded over 3,000 contracts totaling more than $250 million across 13 states.
In 2023, Splitero’s model faced major disruption when Redwood Trust withdrew its funding and later went on to launch a competing platform, Aspire. Redwood’s exit left Splitero without its primary capital source, forcing the company to pause new applications and seek emergency funding.
In October of 2024, Splitero later announced new capital from Antarctica Capital ($300 million) and Blue Owl Capital ($350 million).
How a Home Equity Agreement with Splitero Works
To understand the costs, you first need to understand the two components:
1. Appreciation Sharing. When you repay Splitero — through a sale, refinance, or buyout — you owe your original funding amount plus a percentage of your home’s appreciation above a preset threshold. The threshold is typically 82% to 88% of your home’s appraised value when the agreement starts. You keep all appreciation below this threshold. Above it, Splitero usually takes 38% of the gains.
2. Annual Return Cap. Splitero’s return is capped at 19.99% per year, compounded monthly. This cap protects against costs in fast-appreciating markets or long-term holds.
We’ve written a comprehensive guide to home equity investments, as well as gone in-depth on HEI pros and cons, so you can better understand their complex structures. Keep in mind that all contracts vary significantly from one provider to another.
Example of $100K Investment Over 5 Years
- Home value at start: $1,000,000
- Funding received: $100,000 (less ~$5,000 in fees)
- Threshold: $820,000 (82% of appraised value)
- Home value at exit: $1,200,000
In this example, the homeowner receives $100,000 from Splitero on a $1 million home. The appreciation threshold is set at $820,000, meaning Splitero only shares in the gains above that level. Five years later, the home is appraised at $1.2 million — a $200,000 increase from the original value and a $380,000 gain above the threshold.
Splitero’s share of that $380,000 is 38%, which comes out to $144,400. Add that to the original $100,000 investment, and the total amount owed at repayment is $244,400.
Next, compare this to the annual cap. A 19.99% compounded return on the $100,000 over five years would equal about $248,700. Since the appreciation-based calculation ($244,400) is slightly lower, that’s what the homeowner would pay.
After subtracting upfront fees (about $5,000), the homeowner received approximately $95,000 in net proceeds. Repaying $244,400 on that amount results in an effective annual cost of around 20.8%.
R.J. Weiss CFP® Says: “These agreements can cost more than most credit cards—often 18-20% annually or higher. They should only be used for true financial emergencies: avoiding foreclosure, keeping a business afloat, or essential repairs before selling your home. Never use HEIs for discretionary purchases. If you’re considering this for lifestyle expenses, that signals a cash flow problem that needs to be fixed through budgeting and spending control.
How Long Do Splitero Agreements Last?
Splitero structures your agreement to match the remaining term of your first mortgage, with a minimum duration of 10 years and a maximum of 30. This is slightly different from many competitors, who offer fixed terms regardless of your mortgage.
For example:
- If you have 7 years left on your mortgage, Splitero sets your agreement to 10 years (the minimum).
- If you have 15 years left, the agreement will run for 15 years.
- If your mortgage has 25 years remaining, the agreement will match it at 25 years.
You’re allowed to repay or buy out the agreement early at any time—there’s no prepayment penalty. The 19.99% cap is based on how long you hold the agreement, not the total term length.
Splitero Alternatives
Compared to other HEI options, Splitero offers several features that may appeal to homeowners who don’t qualify for traditional financing:
- Low Credit Score Requirement. With a minimum score of 500, Splitero is more accessible than most HEI providers. Many competitors require scores of 620 or higher.
Flexible Term Length. Splitero’s agreement matches the length of your remaining mortgage, with a minimum term of 10 years and a maximum of 30. This can be helpful for aligning repayment with your broader financial plan. - High Annual Return Cap. Splitero’s return is capped at 19.99% annually, compounded monthly. While this cap is still high, it does limit your worst-case repayment scenario. Some companies don’t have a cap.
However, there are key trade-offs when compared to competitors:
- Shorter-Term Fixed Options Elsewhere. Some HEI providers offer fixed agreement terms of 10, 20, or 30 years regardless of your mortgage, which may offer more predictability.
- Lower Return Caps from Competitors. Aspire, for example, caps its return at 12% if repaid within 3 years and 18% thereafter, though it requires a higher credit score (660 minimum).
- Simpler Pricing Models. Some platforms, such as Point, use more transparent or fixed share formulas that may be easier for homeowners to model.
- Company Stability. Splitero is a relatively new company and has experienced operational disruptions. Other providers like Hometap, Point, and Unison have longer operating histories and broader funding networks.
- Availability Varies by State. Splitero operates in a limited number of states. Always confirm availability in your area before applying.
You can read reviews of each competitor by clicking the links, as well as see our list of best home equity agreement companies. However, here’s a high level overview of each.
Aspire provides a fixed 15-year term, typically structured with a 10-year draw period followed by a 20-year repayment phase. To qualify, homeowners need a credit score of at least 660. Aspire’s return is capped at 18% annually, compounded monthly, with a reduced cap of 12% if the agreement is terminated within the first three years.
Hometap offers a straightforward 10-year term for its HEIs, requiring homeowners to settle the investment by the end of this period. The company accepts credit scores as low as 500, making it accessible to a broader range of homeowners.
Point provides a flexible 30-year term, allowing homeowners ample time to manage their investment. The minimum credit score requirement is 500, and there are no monthly payments during the term.
Unlock features a 10-year term for its HEIs, with the option for homeowners to make partial buyouts throughout the term. The minimum credit score requirement is 500.
Tip: When comparing agreements, calculate your total costs over 5, 10, and 15-year scenarios using different home appreciation rates (3%, 5%, and 7% annually). Most HEI providers offer online calculators, but verify the math yourself.
Final Thoughts
Overall, Splitero’s 19.99% annual return cap is somewhat in line with other HEI competitors. What concerns me most is their operational history.
While funding disruptions are something many startups experience, it’s unfortunate that their primary capital source was withdrawn. For a company you could potentially partner with on a long-term contract involving hundreds of thousands of dollars, there’s definitely cause for concern. I’d prefer to see more operational stability.
Additionally, there aren’t many third-party reviews available for Splitero, making it harder to gauge real customer experiences beyond their own testimonials.
Keep in mind that regardless of how attractive the initial numbers look, your actual terms depend entirely on your individual profile. You won’t know your specific share percentage or potential costs until you complete the full underwriting process, making it difficult to evaluate the true expense and compare with other providers.
Given that Splitero is relatively new and their return caps aren’t meaningfully lower than established competitors, they might be worth considering if you need to compare options against more established providers. However, since HEI products aren’t standardized, it requires significant effort to properly compare each provider’s terms and structure.
Some general tips on when to avoid an HEI include:
- You haven’t exhausted all traditional financing options
- You’re using funds for non-essential expenses
- You don’t have a clear repayment strategy
- You’re considering this for investment purposes
For most homeowners, traditional financing options like HELOCs or cash-out refinances will prove far less expensive. Splitero—like all HEI products—should only be considered as a last resort after exhausting conventional alternatives.
