The Best Home Equity Agreement Companies: How to Choose the Right Provider

When you’re looking for alternative financing options to access your home’s equity, home equity sharing agreements have emerged as a legitimate choice for borrowers who may not qualify for traditional loans or HELOCs. But identifying the best home equity agreement companies requires understanding how these products work, what they cost, and which providers operate in your area.

How Home Equity Sharing Agreements Function

Home equity sharing agreements work differently from conventional home equity loans and lines of credit. Rather than borrowing against your current equity, you’re accessing cash based on your home’s future appreciation potential. An investment company provides you with a lump sum cash payment upfront, and in exchange, they receive a predetermined percentage stake in your home’s future value.

The key distinction is that these arrangements don’t carry monthly payments or interest charges like traditional loans. Instead, you repay the company when you exit the agreement (either through selling your home or buying out their equity stake) or when the agreement reaches its end date, which typically ranges from 10 to 30 years depending on the provider.

One significant advantage: you maintain complete ownership of your home. The investor’s stake is secured through a lien on the property. If you have an existing mortgage, the investor typically holds second lien position, meaning your lender gets paid first if foreclosure occurs.

Key Factors When Evaluating the Best Companies

Property eligibility varies among the leading providers. Some restrict their products to single-family primary residences, while others accommodate second homes, vacation properties, or investment real estate. Your home’s starting value—determined by an independent third-party appraiser and sometimes adjusted by the company—sets the foundation for how much capital you can receive and protects investors from downside risk.

When you eventually exit the agreement, your repayment obligation depends on what happened to your home’s value:

• If your home appreciates: You pay the company a percentage of the ending value or appreciation amount
• If value remains flat: You repay a percentage of the ending value or your original cash advance
• If your home depreciates: Terms vary, but you might pay a percentage of ending value, a portion of initial funds received, or potentially nothing

Understanding the Costs Associated with Top Providers

Before selecting among the best home equity agreement companies, calculate the full cost picture. Typical fees include:

• Origination fees ranging from 3% to 5% of your cash advance
• Appraisals costing $200 to $1,250
• Home inspections running $650 to $1,050
• Title services from $200 to $900
• Escrow services between $250 and $500

When exiting the agreement, you’ll likely face similar costs again (appraisal, inspection, title, and escrow). If selling, you’ll also pay real estate commissions. Comparing multiple providers is essential, as costs vary significantly based on location, property characteristics, and company policies.

Where to Find the Best Home Equity Agreement Providers

Home equity sharing agreements aren’t available through traditional mortgage lenders, banks, or credit unions. Instead, venture capital-backed companies operate this market. As of 2024, several prominent providers serve different geographic areas:

Aspire operates in five states: California, Colorado, Florida, Massachusetts, and Washington

HomePace covers six states: Arizona, Colorado, Illinois, Minnesota, North Carolina, Ohio, Tennessee, Utah, and Washington

HomeTap serves 16 states: Arizona, California, Florida, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Utah, Virginia, and Washington

Point is available in 26 states plus Washington, D.C., including: Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Wisconsin

Splitero operates selectively in: California, Colorado, Oregon, Utah, and Washington

Unison serves 29 states and Washington, D.C.: 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, and Wisconsin

Unlock provides services in 14 states: Arizona, California, Colorado, Florida, Michigan, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington

Making the Best Decision for Your Situation

To identify which company best suits your needs, start by confirming you live in a service area. Then apply to multiple providers to compare personalized terms, fees, and equity percentages. Request detailed information on their evaluation methods for home value and the specifics of their lien positions.

Before committing to any home equity sharing agreement, also explore competing options like traditional home equity loans from local lenders and HELOCs from banks. Only after weighing all alternatives can you determine whether partnering with one of these companies represents your best path forward for accessing your home’s equity.