First question most people have: how much would I actually get?
Home value and mortgage balance are all it takes to estimate your number.
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What a home equity agreement is
A home equity agreement (also called a home equity investment) is not a loan. A company gives you cash today in exchange for a share of what your home is worth later. There is no interest, no monthly payment, and nothing added to your debt to income ratio. You settle once, when you sell the home or when the term ends (typically 10 years), by paying back the company's share of the home's value at that time.
That structure is exactly why it exists: it is built for homeowners who have real equity but do not want, or cannot qualify for, another monthly payment.
Pros and cons at a glance
Pros
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Cons
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The cons only matter if the number is worth it.
See what your equity could unlock before you weigh anything else.
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What it really costs: a plain example
Say your home is worth $400,000 and a provider gives you $40,000 (10 percent of the value) in exchange for roughly a 16 percent share of the home's future value.
Ten years later you sell for $500,000. Their share is about $80,000. You received $40,000 and paid $80,000, so the money cost you about $40,000 over ten years with zero payments along the way.
Now run the same ten years as a HELOC at today's rates and you would pay interest monthly the entire time, likely landing in a similar total cost range, except the HELOC required a payment every single month and a credit profile good enough to get approved.
That is the entire decision: pay as you go with a loan, or pay at the end with your home's growth. Numbers vary by provider and by home, which is why you get an estimate before anything else.
- At least 25 percent equity in your home (more equity means a bigger offer)
- A credit score around 500 or better, far below HELOC requirements
- The home is your primary residence, second home, or rental in an eligible state
Home equity agreement vs HELOC
| Home Equity Agreement | HELOC | |
|---|---|---|
| Monthly payment | None | Required, variable |
| Interest | None | Accrues the whole term |
| Credit needed | Around 500+ | Usually 680+ |
| Income documentation | Minimal | Full underwriting |
| Keep all appreciation | No, you share it | Yes |
| Cheapest when | Home grows slowly | Home grows fast |
Who should actually do this
It fits if you are equity rich but cash or credit tight, self employed with income that is hard to document, carrying high interest debt a lump sum would erase, or you want cash without touching your monthly budget, and you have a realistic path to settle within 10 years (most people settle by selling or refinancing).
It does not fit if you expect strong appreciation and want all of it, you comfortably qualify for a cheap HELOC, or you have no idea how you would handle the buyout at the end.
The two providers to get quotes from
Offers differ meaningfully between companies on the same house, so the move is to get both free estimates and compare. Neither affects your credit. For the full field, see our guide to the best home equity investment companies.
| Hometap | Unison | |
|---|---|---|
| Structure | Share of home's future value, 10 year term | Shares in gains and losses |
| Best for | Straightforward terms, fast estimate | Wanting downside protection if values fall |
| Estimate | Free, no credit impact | Free, no credit impact |
| Get Hometap estimate | Get Unison estimate |
We went deeper on Unison's terms, fees, and fine print in our full Unison review.
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Frequently asked questions
Do you make monthly payments on a home equity agreement?
No. There are no monthly payments and no interest. You settle once, when you sell or when the term ends.
What credit score do you need?
Far less than a loan. Many providers work with scores around 500 because approval is based on your home and equity, not your credit profile.
How much cash can you get?
Typically up to 15 to 25 percent of your home's value, depending on your equity and the provider. The calculator gives you a quick personal estimate.
What happens if my home loses value?
With providers like Unison, the company shares the loss, so you can owe back less than you received. Confirm this in the specific agreement, since terms differ.
Can you buy out the agreement early?
Yes. Most providers let you settle any time during the term by refinancing or paying from savings, without waiting for a sale.
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