Unison’s Equity Sharing Home Loan gives you cash today in exchange for a share of your home’s future value. Unlike a traditional home equity loan or HELOC, it’s structured as an interest-only, second-lien mortgage with fixed, low monthly payments for 10 years.
However, instead of charging full interest over time, part of the cost is deferred.
When the term expires—or when you sell your home—you repay the original amount, the accrued deferred interest and Unison’s share of any appreciation.
Although this is technically a home equity share, it differs significantly from other products in the space as you’re still making monthly payments.
In this review, I’ll break down the costs, outline scenarios where this model works and where it might not, discuss the pros and cons and explore alternatives.
Unison Equity Sharing Loan Example
Let’s walk through the process step by step. This simple example illustrates how the Equity Sharing Home Loan works, though your situation may vary. In Stage 1, you receive your cash upfront. In Stage 2, you repay the loan when the term ends or when you sell your home.
Stage 1: Getting Your Cash Out
When you apply for Unison’s Equity Sharing Home Loan, you receive cash based on your home’s value.
For example, if your home is worth $500,000, you might borrow $100,000—about 20% of your home’s value. During the 10-year term, you make interest-only payments. Unison requires you to pay 75% of the monthly interest while the remaining 25% is deferred and compounded until the end.
Here’s an example scenario:
| Parameter | Example Value | Description |
| Home Value | $500,000 | The current market value of your home. |
| Loan Amount | $100,000 (20% of home value) | The cash you receive upfront. |
| Loan Term | 10 years | The period during which you make interest-only payments. |
| Annual Interest Rate | 7.85% | Examples fixed rate applied to your loan. |
| Total Monthly Interest | ~$654 | Calculated as (Loan Amount x Interest Rate) / 12. |
| Monthly Payment (75%) | ~$490 | The portion of interest you pay each month. |
| Deferred Interest (25%) | ~$164 per month | This interest accrues and compounds until the end of the term. |
Stage 2: Repayment
At the end of the term or when you sell your home, you settle your loan. Let’s say your home appreciates, and its value increases by $100,000 (from $500,000 to $600,000).
A typical agreement with Unison is that they share 1.5 times the percentage you borrowed. Because you borrowed 20%, Unison takes 30% of the home’s appreciation. In this case, that amounts to $30,000. You then owe approaximate $20,000 in deferred interest.
| Parameter | Example Value | Description |
| Home Appreciation | $100,000 | Say your home’s value rises from $500,000 to $600,000. |
| Unison’s Share of Appreciation | $30,000 | Unison receives 1.5 x 20% = 30% of the appreciation, or 30% of $100,000. |
| Total Deferred Interest (10 years) | Approximately $20,000 | The compounded deferred interest over the term. |
| Principal Repayment | $100,000 | The original cash you received. |
| Total Repayment Due | Around $150,000 | The sum of the principal |
In Stage 2, you repay the loan by covering the original amount, the accrued deferred interest, and Unison’s share of any appreciation. If your home doesn’t appreciate, you’d simply repay the principal and deferred interest. Plus, you have the flexibility to repay the loan early without penalty.
This step-by-step breakdown shows how Unison’s Equity Sharing Home Loan provides cash upfront with low monthly payments and then adjusts the final repayment based on your home’s performance.
7 Things to Know About Unison’s Equity Sharing Home Loan
Now that we’ve laid the groundwork for how Unison’s Equity Sharing Home Loan works, let’s delve into the finer details that set this arrangement apart. The following seven key points break down what you need to know about this product.
- It’s a hybrid product. While Unison is often referred next to home equity sharing companies like Point, Hometap, and Unlock, their product blends features of a traditional home equity loan with an equity share agreement. You receive cash upfront, make low monthly interest-only payments, and later repay a share of your home’s appreciation.
- Low monthly payments with deferred interest. You pay 75% of the interest each month, while the remaining 25% is deferred and compounded until the end. This structure keeps your monthly costs low compared with conventional loans.
- Repayment is tied to your home’s timeline. The loan comes due at the end of 10 years or when you sell your home. At that point, you repay the original cash, all accrued deferred interest, and Unison’s share of any appreciation. You can also choose to pay it off early without penalty.
- Unison’s share is proportional. Their portion is typically 1.5 times the percentage of your home’s value that you borrow. For instance, if your home is worth $500,000 and you access $100,000 (which is 20% of your home’s value), Unison’s share is calculated at 1.5 times the percentage you borrow. So, if your home appreciates by $100,000, rising to $600,000, Unison’s share would be $30,000. In other words, when it’s time to repay the loan, you’d pay back the original amount plus any accrued deferred interest, and then an additional $30,000 for Unison’s share of the appreciation.
- No sharing of depreciation. If your home’s value does not increase, you only repay the principal and deferred interest. Unison does not take a share of any decrease in your home’s value, nor do they share the risk.
- Flexibility for home improvements. If you invest in significant renovations, there’s a provision to request credit for the added value after three years, reducing the share of appreciation owed to Unison.
- Strict eligibility requirements. To qualify, you generally need a FICO score of 680 or higher, a debt-to-income ratio of 40% or less, and you must maintain a combined loan-to-value ratio of 70% or below. This ensures that only financially stable homeowners can take advantage of the product.
When It Works—and When It Might Not
Understanding the situations in which Unison’s Equity Sharing Home Loan tends to make more sense—and where it might fall short—can help you decide if it’s right for you.
Works well when:
- You have significant home equity and low monthly cash flow. If you own a home with strong equity but need extra cash without a heavy monthly burden, Unison offers a way to unlock funds while keeping payments low.
- You want to preserve your first mortgage. Homeowners with a low-rate first mortgage often avoid refinancing to cash out. With this loan, you tap into your equity without disturbing your favorable first mortgage.
- You plan to sell or refinance within 10 years. The loan is designed to be repaid when you sell or at the end of a 10-year term. If you have. clear exit plan, the model fits neatly into your timeline.
Might not work well when:
- You plan to stay in your home beyond 10 years. The fixed term means you must settle the loan at 10 years, so if you intend to stay indefinitely, a fully amortizing loan might offer more stability.
- You prefer predictable, fully amortizing payments. This product’s unique structure—low monthly payments with deferred interest and a variable final cost—might not suit borrowers who value complete predictability.
- Your financial profile doesn’t meet the criteria. With strict eligibility requirements (a FICO score of 680 or higher, a debt-to-income ratio of 40% or less, and a combined loan-to-value ratio of 70% or below), this loan is best for financially stable homeowners. Other home equity agreement providers, have a lot lower criteria (but their contract works much different).
Application and Eligibility
Unison requires that your mid-FICO credit score (the middle of your three FICO scores) be at least 620. Minimum debt-to-income (DTI) and loan-to-value (LTV) ratios vary depending on your credit score. With an excellent score, Unison’s maximum LTV is 75%. A strong credit score can help maximize your approval chances and secure better terms.
At the time of writing, Unison is available in the following states:
- Arizona
- California
- Colorado
- Delaware
- Florida
- Illinois
- Indiana
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Utah
- Virginia
- Washington
- District of Columbia / Washington D.C.
- Wisconsin
Unison Competitors and Alternatives
There are several companies offering home equity sharing products. However, alternatives are pure home equity share agreements that require no monthly payments.
In contrast, Unison’s Equity Sharing Home Loan is a hybrid product that provides cash upfront in exchange for a share of your home’s future value—and it comes with low, interest-only monthly payments.
This means Unison requires a strong credit profile, while many competitors target homeowners who may not qualify for a traditional HELOC due to weaker credit.
- Hometap. Hometap provides a cash-for-equity arrangement, offering homeowners upfront cash in exchange for a share of their home’s future value. You repay Hometap’s investment plus a portion of your home’s appreciation at the end of a 10-year term or upon sale, with no monthly payments required. Hometap has a minimum credit score requirement of 500, offers a maximum combined loan-to-value ratio of 75%, and allows you to access up to 30% of your home’s value or a maximum of $600,000.
- Point. Point offers an equity sharing model with no monthly payments and terms that can extend up to 30 years. Depending on your home’s equity and value, you can receive between $25,000 and $500,000. Point applies a risk adjustment typically ranging from 15% to 25%, which reduces the initial value used for calculating appreciation. This risk adjustment, along with other factors such as appreciation share and fees, can impact the overall cost of the investment, especially if your home appreciates significantly.
- Unlock. Unlock offers a home equity agreement with terms up to 10 years and no monthly payments. With a minimum credit score requirement of 500, Unlock can provide between $30,000 and $500,000, depending on factors like home value and existing debt. The agreement allows for flexible buyout options at any time during the term. Unlock typically receives a share of future home appreciation that’s about twice the percentage of the initial investment. Available in 15 states, Unlock charges an origination fee of up to 4.9% plus closing costs and accepts both owner-occupied and rental properties.
While the above three equity sharing companies tend to target borrowers with weaker credit—often those who can’t qualify for a traditional home equity loan—Unison takes a different approach.
Unison’s Equity Sharing Home Loan is designed for homeowners with a stronger credit profile. Still, its debt-to-income criteria are less strict than those of many conventional home equity loans, making it attractive even to those who face unfavorable HELOC terms.
If you meet Unison’s credit standards, it makes sense to compare their product not only with other equity sharing providers but also with HELOCs.
Our Take: Is Unison a Good Deal?
Unison’s product is an innovative hybrid solution that gives you cash upfront with low, fixed monthly payments—ideal if you want to preserve your low-rate first mortgage or avoid the high costs of a HELOC.
You receive liquidity now in exchange for sharing a portion of your home’s future appreciation. It’s a sophisticated agreement requiring a solid credit profile, so it’s best suited for financially stable homeowners.
While you do make monthly payments, 25% of the interest is deferred until the end of the 10-year term, at which point you repay the original cash, the accrued deferred interest, and Unison’s share of any appreciation.
If your home appreciates significantly, you may end up paying more; however, that extra cost reflects the increased value of your property, which boosts your overall equity (so this in some ways is the best outcome).
The biggest risk is if you can’t refinance or otherwise pay off the balance at the end of the term—in that case, you might be forced to sell your home.
Overall, if you have strong credit and you’re using the cash for investments that generate growth (for example, paying off high-interst dbt so you can take advantage of your 401(k) match), this product could make sense.
On the other hand, if you’re using the money for a renovation and plan to stay in your home long term, you need to be certain you can cover the payment when the term ends. In short, it’s not a one-size-fits-all solution, so careful financial planning and realistic forecasting of your home’s performance are essential.
Learn more: red about how home equity sharing agreements work and the home equity sharing pros and cons you need to be aware of.
