Hometap and Unlock are two of the major players in the home equity sharing space, offering an alternative to traditional home equity loans.
Home equity sharing lets you access your home’s value without monthly payments.
In this comparison, I’ll first provide an overview of the differences. Then, we’ll dive into various scenarios that illustrate how these agreements operate under different market conditions. Finally, I’ll cover some guidelines to help determine which provider might be the best fit for your financial situation and long-term goals.
Overview of Key Differences
- Both Unlock and Hometap offer a standard 10-year contract, but you can exit early by selling, refinancing or buying out the investor.
- Unlock lets you make partial buyouts during the term, which means you can reduce your future obligation gradually if you have the funds. In contrast, Hometap requires a full lump-sum settlement when you exit, whether you exit early or at the end of the 10-year term.
- Hometap’s repayment structure is tiered based on how long you hold the investment.. For example, if you receive cash equal to 10% of your home’s value, you might owe about 15% if you exit within three years. This share increases to roughly 17–18% in years 4–6 and reaches 20% between 7 and 10 years. This model can be cost-effective for a short-term exit, but if market conditions are volatile or your exit timing shifts, its advantage may fade. In contrast, Unlock’s fixed percentage offers more predictable costs and the flexibility of partial buyouts to gradually reduce your obligation.
- Hometap primarily focuses on your available equity, requiring at least 25% equity and typically investing up to 25% of your home’s current value — with a maximum cash offer of $600,000 — and does not enforce a strict debt-to-income ratio. Unlock evaluates available home equity, mortgage debt and credit history. The maximum cash available is capped at around $500,000 and overall limits are tied to a combined loan-to-value ratio of roughly 80% (depending on the homeowner’s credit score and the type of property they own.)
- Both Unlock and Hometap provide renovation benefits that aren’t offered by all home equity sharing companies. With Hometap, the added value from approved renovations is automatically excluded from the share calculation. Unlock, on the other hand, offers an Improvement adjustment provision, allowing homeowners to exclude renovation value as long as they provide the required documentation. Both companies make it easier for homeowners to retain the value of home improvements in their final payout.
Unlock vs. Hometap: Key Facts
| Hometap | Unlock | |
| Founded in: | 2017 | 2020 |
| TrustPilot score (as of February 2025): | 4.7 rating on 1,100+ reviews. | 4.7 rating on 1,167 reviews |
| States available: | AZ, CA, DC, FL, IN, MI, MN, MO, NV, NJ, NY, OH, OR, PA, SC, UT, VA + Washington D.C. | AZ, CA, FL, IN, KY, MI, MO, NV, NJ, NM, NC, OH, OR, PA, SC, TN, UT, VA, WA. |
| Eligible property types: | Single-family, condos, 1-4 unit multi-family, and manufactured homes. | Single-family, townhomes, condos, and 2-4 unit properties (excludes manufactured homes). |
| Maximum cash advance: | Up to $600,000. | Up to $500,000. |
| Minimum equity requirement: | Requires at least 25% equity (invests up to ~25% of your home’s value). | Must maintain enough equity to keep combined LTV around 80%. |
| Underwriting criteria: | Accepts credit scores as low as 500; no strict DTI limit; focuses primarily on available equity. | Accepts credit scores around 500; emphasizes flexible equity-based lending. |
| Repayment options: | Requires full lump-sum settlement at exit; early buyouts can lower the obligation if exited within 3 years. | Uses a fixed percentage structure; offers partial buyouts during the term to gradually reduce your obligation. |
| Contract term: | Fixed 10-year term (with options to exit early through a full buyout). | Fixed 10-year term (with options to exit early through partial or full buyouts). |
| Fee structure: | Origination fee of 3.5%. | Origination fee of approximately 4.9%. |
| Learn more: | Hometap Review | Unlock Review |
Unlock vs. Hometap Scenario Comparisons
Using each company’s calculators, let’s explore two different scenarios.
While these figures are illustrative and actual offers depend on factors like your appraisal, credit profile, and local market conditions. They’re worth understanding, as they point out some of the differences between the two companies.
Scenario #1: High Appreciation for 10 Years
Below is a side-by-side comparison of how Hometap and Unlock might work if you receive a $100,000 equity investment from a $1 million home with a $550,000 mortgage, holding for 10 years at 8% annual appreciation.
| Parameter | Hometap | Unlock |
| Initial home value: | $1 million. | $1 million. |
| Equity investment: | $100,000 (gross, minus ~3.5% fee). | $100,000 (gross, minus ~4.9% fee). |
| Net cash received upfront: | $96,500 | $95,100 |
| Annual appreciation rate: | 8% | 8% |
| Projected future home value: | $2,158,925 | $2,158,925 |
| Company’s share percentage: | 20% (applies at 7–10 years). | ~18% (fixed in this example). |
| Amount owed to company: | ~$431,785 (20% of $2,158,925) | ~$388,606 (18% of $2,158,925) |
| Homeowner’s share: | $1,727,140 | $1,770,319 |
This example helps illustrate a few of the differences between the two. After settling the investor’s share, your remaining equity is slightly lower with Hometap ($1,727,140) than with Unlock ($1,770,319).
This is primarily because after 7 years, Hometap’s share caps at 20%. So, over a decade of strong appreciation, that extra 2% (vs. Unlock’s ~18%) on a much larger home value leads to a bigger payout for Hometap.
Scenario #2: Zero Appreciation for 3 Years
Below is a side-by-side comparison of Hometap and Unlock for a $1 million home, $550,000 mortgage, and $100,000 of equity funding, assuming 3 years with 0% annual appreciation (i.e., the home’s value stays the same at $1 million).
| Parameter | Hometap | Unlock |
| Initial home value: | $1 million. | $1 million. |
| Equity investment: | $100,000 (gross, minus ~3.5% fee). | $100,000 (gross, minus ~4.9% fee). |
| Net cash received upfront: | $96,500 | $95,100 |
| Annual appreciation rate: | 0% | 0% |
| Projected future home value: | $1 million. | $1 million |
| Company’s share: | 15% if you settle in 0–3 years. | ~17% (fixed in this example). |
| Amount owed to company: | $150,000 (15% of $1 million). | $172,368 (17.24% of $1 million). |
| Homeowner’s share: | $850,000 | $827,632 |
In this zero-appreciation scenario over three years, Hometap takes 15% of the unchanged $1 million value — so you owe $150,000 on the $100,000 you initially received — while Unlock charges around 17% ($172,368). Hometap’s lower percentage is beneficial for short-term exits when the market is flat, but remember it requires a lump-sum payoff at exit.
Hometap Is Best For
- Those who are planning a short‑term exit (under 3 years), because its investor share is lower if you exit early, and its lower upfront fees mean you receive more net cash initially.
- Homeowners with at least 25% equity (after the investment).
- Those who prefer a lower upfront fee, and don’t mind a higher net cash amount received at closing for this lower fee.
- Homeowners who don’t mind a lump-sum settlement at exit and appreciate a higher maximum investment cap (up to $600,000).
Unlock Is Best For
- Homeowners with higher-value properties who need more flexible underwriting.
- Those who value predictable, fixed-share percentages and the ability to make partial buyouts during the term to gradually reduce their obligation.
- Homeowners with higher loan-to-value ratios, because it allows a combined LTV of about 80% (which means that if your existing mortgage plus the investment falls below 80% of your home’s value, you can potentially tap into an extra 5% of your home’s equity upfront compared to Hometap — even though its maximum investment ($500,000) is lower).
Final Thoughts
There are a complex set of pros and cons to home equity sharing agreements. So, before moving forward with any company, it’s really important to understand how home equity sharing agreements work.
In general, if you want more predictable costs and the flexibility to gradually reduce your obligation over time, especially when you have high debt or own a rental property, Unlock may be the better choice. Its fixed share percentage and partial buyout option give you more control over your future payout.
On the other hand, Hometap is ideal for homeowners planning a short‑term exit. It has a time‑based share adjustment that can reduce your final payout if you exit early, and its lower upfront fee means you get more net cash. However, Hometap requires that you maintain at least 25% equity after the investment and mandates a full lump‑sum settlement at exit.
