Home Equity Sharing Agreements: A Simple Guide for Homeowners in 2026

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Key Takeaways

• Home equity sharing agreements let you get a lump sum of cash now in exchange for giving an investor a share of your home’s future value, usually with no monthly payments during the term of the agreement.
• These agreements can help homeowners who are “house rich but cash poor,” have lower credit scores, or high debts, and can’t qualify for a traditional home equity loan or HELOC.
• Repayment usually happens when you sell the home or after a set number of years (often 10–30), and can end up costing much more than a regular loan if your home goes up a lot in value.
• Home equity sharing is just one option—other choices include co-investors for down payment help, down payment assistance programs, and working with a real estate agent found through FastExpert to explore safer or cheaper routes.
• This article is written in very simple language (about a 5th-grade level) with real examples and is meant to help U.S. home buyers and homeowners understand if equity sharing fits their situation.

What Is a Home Equity Sharing Agreement?

A home equity sharing agreement is when a company or investor gives you cash now and, in return, gets a slice of your home’s future appreciation or value instead of charging interest and monthly payments. Think of it like this: you’re trading part of what your house might be worth later for money you can use today. Home equity sharing agreements are typically best for individuals with poor credit or high debt-to-income ratios who may struggle to qualify for traditional loans.

Here’s a simple example. In 2026, let’s say you own a $400,000 house. An investment company offers you $80,000 in cash upfront. In exchange, you promise them a share of your home’s future price when you sell or after 20–30 years. You don’t make any monthly repayments during that time—the company just waits until the end to collect.

Home equity sharing agreements differ from traditional home equity loans because they do not involve monthly payments or interest; repayment occurs at the end of the agreement term. Home equity sharing agreements are not offered by traditional banks but by specialized home equity sharing companies.

This is not a normal loan. With a home equity loan, you borrow money and pay it back with interest each month. With a home equity investment, you’re not borrowing. Instead, you’re selling part of your future gain (and sometimes sharing the risk if your home falls in value). There’s no interest rate, but you could end up paying more if your property value rises a lot.

These agreements are used across the U.S., mostly in higher-cost markets like California, Washington, Colorado, New York, and other states where homes became very expensive during the 2010–2024 housing boom. When home prices are high, homeowners often have lots of equity but not much cash in the bank.

Equity sharing can be used both by existing homeowners who want to tap their home’s equity and by some buyers who need help with a down payment. Some companies offer “co-investor” setups where an investor helps you buy a house in exchange for a piece of the future profits.

Types of Home Equity Sharing Agreements

There are two main models for how these agreements work: “share of appreciation” and “share of home value.” Understanding the difference is important because it changes how much you pay back at the end. Let’s look at both with very simple math.

In the share of appreciation model, you pay back the original cash plus a percentage of how much your home went up in value. In the share of home value model, you pay back a percentage of your home’s full price at the end, not just the gain. If your home goes from $300,000 to $360,000, these two models give the investor very different amounts.

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Different companies like Point, Unison, and others tend to use one of these main models or a mix. This means you must read the fine print carefully to know exactly what you’re agreeing to. The “type” of agreement strongly affects your final cost, even if the cash upfront looks similar.

Share of Appreciation Model

In this model, you repay the original cash plus a set percentage of how much the home went up in value—not a percentage of the full final price.

Here’s how it works with real numbers. Let’s say in 2026 you get $75,000 on a $350,000 home. The agreement says the investor gets 30% of any future appreciation. Fifteen years later, your home is worth $500,000. That means it went up by $150,000.

Now let’s do the math step by step. The investor gets 30% of the $150,000 gain, which is $45,000. Add that to the $75,000 they gave you at the start. You owe them $120,000 total when you sell or when the agreement term ends.

If the home value doesn’t grow much, the extra amount you owe may be smaller. But fees and risk adjustments can still make this deal more expensive than a normal loan. This model directly ties what you owe to how much your local housing market rises, which can be risky in hot markets like Austin, Denver, or Seattle, where prices have jumped quickly.

Share of Home Value Model

This model uses a fixed percentage of your home’s full future value at the time you sell or end the agreement, instead of just the appreciation amount.

Let’s look at an example. An investor pays you $60,000 now for 20% of your home’s future value. If your home is worth $400,000 in 2036, you pay them 20% of that ($80,000)—even if you only got $60,000 at the start. That’s $20,000 more than what they gave you.

Investors often “discount” your home’s starting value as a risk adjustment to protect themselves. This means you may get less cash now but still owe a big share later. For example, they might value your $500,000 home at $470,000, so you get less money upfront.

If the home loses value, you may pay back less than you received, but there may still be fees and penalties depending on the contract. This model feels more like selling a small permanent slice of the home. Many people are surprised when they see the final payoff statement years later and realize how much the company’s share has grown.

How Home Equity Sharing Agreements Work Step by Step

The process is similar to applying for a home equity loan. You apply, share your income and home details, get an appraisal, sign papers, and receive cash. The big difference is that you don’t make monthly payments.

Here’s the typical timeline for 2024–2026 deals:

• Pre-qualification: A few minutes online
• Full approval: A few days after you submit documents
• Cash in your hands: About 3–4 weeks after appraisal and closing

The company usually places a lien on your property. This is a legal claim that means the agreement must be settled when the home is sold, refinanced, or when the agreement term ends (often 10, 20, or 30 years).

Let’s look at a realistic story. Maria is a homeowner in 2026 with $150,000 in equity but also $40,000 in high-interest credit card debt. She has poor credit and can’t qualify for a HELOC. She applies with an equity sharing company and gets $50,000 in cash. She uses it to pay off her credit cards, saving hundreds of dollars each month in interest. She doesn’t have to make monthly payments on the equity sharing agreement—she just knows she’ll owe a share of her home’s appreciation when she sells someday.

Agreements usually spell out what happens if you remodel, add rooms, or rent out the property. These rules differ by company and should be checked with an attorney before you sign anything.

Typical Qualification Rules

Most companies want you to have at least 20–40% equity in your home to qualify. For example, if you have a $400,000 home, you should owe $240,000 or less on your mortgage.

The minimum credit score requirements are often more flexible than those of banks. Many programs will look at scores in the 500s, while normal home equity loans often want 620–680 or higher. This makes equity sharing a better option for people with credit problems.

Debt-to-income ratio limits can be looser too. This helps people with variable income—like gig workers, freelancers, and small business owners—who may struggle with traditional lenders and traditional loans.

Here are some common limits:

• Primary residences and some second homes are usually allowed
• Many companies don’t accept manufactured homes or very rural properties
• Age, property location, and past bankruptcies can affect eligibility
• Each investment company sets its own rules

Some areas have limited availability for these products, so not every homeowner will be able to find a company that serves their market.

What Do Home Equity Sharing Agreements Cost?

There are two cost layers: upfront fees at closing and the long-term cost of giving up part of your home’s future value.

Upfront fee ranges (2024–2026):

• About 3%–5% of the amount you receive
• Third-party charges like appraisal, title, and recording fees
• Closing costs similar to a mortgage refinance

“Risk adjustments” to your starting home value can be a hidden cost. The company may value your $500,000 home at $470,000, so you get less cash but still owe a big share later. This discount protects the investor but costs you money.

Here’s a simple comparison. Imagine you need $70,000:

• Home equity loan at 9% interest for 15 years: You’d pay about $710/month and around $58,000 in total interest over the life of the loan.
• Equity sharing agreement: You get $70,000 with no monthly payments. But if your home goes from $400,000 to $550,000, you might owe $85,000–$100,000 or more at the end, depending on the terms.

Unlike loans, you don’t feel the cost each month with payments. It all shows up at the end. That’s why you should ask the company for several “what if” payoff examples before signing. Ask them: “What do I owe if my home goes up 10%? 30%? 50%?”

When Does a Home Equity Sharing Agreement Make Sense?

Equity sharing can be helpful in certain situations, but it’s usually more expensive over time than traditional loans if you can qualify for those. Think of it as a tool for specific problems, not a first choice for most homeowners.

Real-life situations where it can make sense:

• Homeowners with large equity in places like California or New Jersey, but low income
• People with high medical bills who need cash fast
• Folks with credit scores under 620 who can’t get approved elsewhere
• Self-employed workers who can’t document income easily for lenders
• Homeowners facing possible foreclosure who need to avoid adding to their monthly payments

These agreements can help avoid foreclosure or missed payments because there is no monthly bill. This can be important for people on fixed or unpredictable income, like retirees or gig workers.

Situations where it may not be a good fit:

• If you have strong credit and a steady income, you’ll probably pay less with a regular loan
• If you expect your area (suburbs around Dallas, Raleigh, or Phoenix) to keep rising fast in value over the next 10–20 years, you’ll give up a lot of your home’s appreciation
• If you want to leave your home to your children debt-free

Talk to a housing counselor, financial planner, or real estate professional before signing. Once you agree, it can be very hard or expensive to undo.

Pros of Home Equity Sharing Agreements

Here are the main benefits of these agreements:

• No monthly payments: Your budget stays the same, with no new debt to pay each month
• Easier qualification: Works for people with poor credit or high debt-to-income ratio
• Access to your home’s equity: Get cash without adding to your monthly debt load
• Shared downside risk: If home prices fall, the investor shares the loss with you
• Helpful after financial setbacks: Good for people whose credit was hurt after 2020–2023 economic shocks

For older homeowners or those near retirement, not adding a new monthly payment can keep budgets stable and reduce stress. When you’re living on fixed income, predictability matters.

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Lump-sum cash can be used for big needs like paying off 20%+ credit card interest, consolidating high-rate personal loans, or funding necessary home repairs (roof, HVAC, plumbing). Some owners use it for medical bills, education, or helping family members.

Cons and Risks of Home Equity Sharing Agreements

Here are the major downsides to consider:

• Potentially very high total cost: If home values jump, you could pay back much more than a loan would have cost
• Loss of full ownership control: The investor has a claim on your property
• Complex contracts: Hard to understand, with confusing terms and conditions
• Limits on refinancing: Some agreements restrict taking other loans later
• Possible rental restrictions: You may not be able to rent out your home
• Early exit penalties: Buying out the agreement early can be expensive

Because there’s no monthly reminder, many people forget how expensive the deal can be until they sell 10–20 years later and see a very large payoff due at closing.

Some contracts may restrict renting, major remodeling, or selling within a certain number of years. Breaking these rules could trigger fees or force early repayment.

If you hope to pass the home on to children, they may face a surprising bill to keep the property. At that point, they’d need to pay the investor their share of the value, which might mean selling the house.

Talk to a tax professional about capital gains and deduction limits. Tax rules can change, and equity sharing may affect your final numbers differently than a mortgage.

Comparing Home Equity Sharing Companies

Unison and Point are two prominent home equity sharing companies that offer different terms and conditions for accessing home equity. Home equity sharing companies like Unison and Point provide cash upfront in exchange for a share of the future appreciation of the home.

• Point generally has better customer reviews and fewer complaints compared to Unison.
• Unison typically requires a higher credit score of at least 680, while Point accepts lower credit scores starting from 500.
• Point allows for quicker access to funds and has more flexible eligibility requirements compared to Unison.
• Unison is better suited for homeowners looking for long-term financial planning, while Point is ideal for those needing immediate access to equity.
• Unison has a five-year restriction on depreciated sales or buyouts, while Point does not impose such restrictions.

Home Equity Sharing vs. Other Ways to Tap Your Home’s Value

Home equity sharing is just one tool. Homeowners should compare it with home equity loans, HELOCs, cash-out refinances, and sometimes selling and downsizing.

Home equity loan: You get a lump sum and make fixed monthly payments with interest. You keep 100% of your home’s future appreciation. Works best for borrowers with good credit and steady income.

HELOC: You get a line of credit you can draw from as needed, with variable interest rates. You also keep all future gains. Good for people who want flexibility and can handle changing payments.

Cash-out refinance: You replace your mortgage with a bigger one and take the difference as cash. Makes sense when interest rates are low and you want one simple payment.

Equity sharing: You get cash with no monthly payments, but you give up part of your home’s future appreciation. Works for people who can’t qualify for other options or who really need to avoid monthly bills.

Here’s a comparison. Imagine a $500,000 home with a $250,000 mortgage balance:

• A home equity loan might give you $75,000 with monthly payments of around $750 for 15 years
• An equity sharing agreement might give you $75,000 with no payments, but you could owe $100,000+ when you sell if the home appreciates significantly

Traditional loans let you keep 100% of future gains, but you must handle monthly payments and qualify based on credit and income. Shop around and get multiple quotes before choosing. Small differences in terms can add up to tens of thousands of dollars over 10–30 years.

How FastExpert Can Help You Explore Your Options

FastExpert is a free online service that connects home buyers and home sellers across the U.S. with trusted, local real estate agents and other professionals. Think of it as a matchmaking service for finding the right expert to help with your housing decisions.

Homeowners can use FastExpert to find experienced agents who understand equity sharing, cash-out refinancing, and selling strategies. These agents can walk you through the pros and cons for your local market in 2026 and beyond. They know which neighborhoods are growing and which might be slowing down.

Buyers who are short on a down payment can use FastExpert to find agents familiar with co-investor programs, down payment assistance, and creative but safe ways to become a homeowner. The real estate industry has many options beyond what most people know about.

We encourage you to compare multiple agents through FastExpert so you can hear different viewpoints, ask about 2026 market trends in your city, and avoid rushing into a costly agreement you don’t fully understand. It’s free, and it helps you feel more confident and informed when making big decisions about your wealth and your future.

Using a Co-Investor to Help You Buy a Home When You Don’t Have Enough Money

Some buyers use a co-investor instead of, or in addition to, an equity sharing company to help with the down payment when they can’t save enough on their own. This is becoming more common as home prices stay high in many parts of the country.

A co-investor is different from a co-borrower. A co-borrower (like a parent) has their income and credit profile used to qualify for the mortgage, and they’re on the hook for payments. Co-owners who are co-investors share ownership and future profits, not just the loan. They might not even be on the mortgage at all.

Here’s how a co-investor deal might work. A family member, friend, or private investor pays part of the down payment in 2026. They own a percentage of the home based on their investment. When the home is sold, they get their share of the profit back according to the agreement you’ve co-written together.

Simple example: Sarah only has $20,000 saved. Her aunt adds $40,000 as an investment. Together, they buy a $300,000 house. The agreement says Sarah owns 70% and her aunt owns 30%. Ten years later, Sarah sells for $400,000. After paying off the mortgage, they split the remaining equity according to their ownership percentages.

Written agreements are crucial. They should cover:

• Who pays for repairs and maintenance
• Who lives there (co-living situations can be tricky)
• Who makes decisions about selling
• What happens if someone loses income or wants out early
• How to handle joint tenancy or other co ownership structures

Pros and Cons of Co-Investors for Home Buyers

Benefits:

• Makes it possible to buy sooner than saving alone
• Can reduce the size of the mortgage you need
• May help you avoid expensive private mortgage insurance (PMI)
• Allows buyers to start building equity earlier instead of renting
• Can combine multiple incomes for a stronger purchase offer

Risks:

• Possible conflicts between partners if you disagree about decisions
• Tricky situations if one person needs to sell early
• Emotional strain if the co-investor is a family member or friend
• Investment performance depends on the housing market
• Liability questions if the property has problems

Talk with a real estate agent (found through FastExpert) and a real estate attorney before signing any co-investor agreement. Everyone should understand their rights, their ownership percentage, and what happens in different scenarios.

In some markets in 2026, having a co-investor can make offers stronger because you can put more money down. But this only works if the deal is set up clearly and safely. Co-investors can be powerful helpers, but they should be treated like serious business partners, not casual helpers.

Practical Tips Before You Sign Any Home Equity Sharing or Co-Investor Agreement

These are big, long-term decisions. The goal is to protect your family and your future, not just to get fast cash. Take your time and do your homework before moving forward.

Gather multiple offers: Collect written offers from at least two or three equity sharing companies. Ask each for sample payoff amounts in 5, 10, 20, and 30 years based on different home price scenarios. This helps you determine which company offers the best terms.

Check reviews and complaints: Look up each company on trusted sites like the Better Business Bureau and consumer review platforms. Look for patterns in customer comments. Are people surprised by hidden fees? Do they have trouble reaching customer service?

Talk to professionals: A local real estate agent (via FastExpert), a housing counselor, or an investment advisor who understands current U.S. housing and interest rate trends can help you decide if this is the right path. The national association of housing counselors offers free or low-cost help.

Read every page: The contract is legally binding. Ask questions in simple language until you understand. Consider hiring a real estate attorney to explain important parts like:

• Early exit rules and fees
• Remodeling guidelines
• What happens if a signer dies
• Rules about rental properties and rental income
• The full repayment formula

Don’t let anyone rush you. A legitimate company will give you time to review and understand the agreement before you sign.

Frequently Asked Questions (FAQ)

These questions cover topics not fully answered above and are written in simple language for quick reading. They focus on things everyday homeowners and first-time buyers in the U.S. might ask in 2026 when first hearing about home equity sharing and co-investors.

Does a home equity sharing agreement hurt my credit score?

Most equity sharing agreements do not show up as traditional loans on your credit report. This means they usually don’t affect your credit score the same way a missed loan payment would.

However, the company may still check your credit during the application process. This creates a small, temporary dip from a hard inquiry—usually just a few points that recover quickly.

While the agreement itself might not help build credit, using the cash to pay off high-interest debt on time could improve your credit over time. Ask the specific company how they report (or do not report) the agreement to credit bureaus before signing.

Can I refinance my mortgage after I sign an equity sharing agreement?

Refinancing is sometimes possible, but it can be more complicated because the equity sharing company has a claim on your home’s value through their lien.

Some agreements allow refinancing without changes, while others require the investor’s approval or even early payoff, which could be expensive. Check this section of your contract carefully before you sign.

A local agent or loan officer, found through FastExpert, can help you understand how the agreement might affect future refinancing plans. This is especially important if you think interest rates might drop and you’d want to take advantage.

What happens if I move out and rent my home?

Many agreements are written for owner-occupied homes only. Moving out and turning the home into a rental may break the rules unless the company approves it in writing.

Some contracts may allow renting after a waiting period or with certain limits. Others may demand early repayment if you change how you use the property. The exchange of money at the start doesn’t always give you complete freedom.

Ask about renting rules upfront and get any permission in writing. If you’re planning to move in the next few years, you might want to consider other options. Owning and investing in the same property gets complicated with these agreements.

Are home equity sharing payments tax-deductible like mortgage interest?

In general, the amount you pay back to the investor is usually not treated the same way as mortgage interest for tax deduction purposes. You likely won’t get the same tax benefits you would with a regular loan.

Tax laws can change, and details depend on your personal situation and how the deal is structured. Don’t count on big tax breaks from equity sharing.

Speak with a tax professional or CPA before deciding based on taxes. Keep all paperwork from the agreement and eventual sale to make tax filing easier later. This is one area where professional advice really matters.

Is a co-investor or equity sharing safer than borrowing from family?

Borrowing from family can be cheaper and more flexible because there are usually no fees and you can negotiate friendly terms. But it can also cause emotional stress if money troubles come up later.

Co-investor and fractional ownership deals are more formal and written down. This can make roles and expectations clearer, but the process may be more expensive in dollars due to legal fees and administrative costs.

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Think about both money and relationships. Write clear agreements even when working with parents, siblings, or close friends. A real estate attorney can help put simple, fair terms in writing so everyone understands what will happen over time. This protects both the relationship and everyone’s funds.