Home Equity Investment Companies [2025]: High Fees for a Lump Sum Payment

Home equity investment companies allow you to access equity from your home without taking out a loan. You can borrow a substantial amount of money, sometimes up to $600,000, and make no payments for as long as 30 years. You also aren't charged a set interest rate.

However, home equity investments can come with hefty upfront fees, require significant equity in your home, and take a long time to qualify for. These investments are also available only in certain areas where homes are likely to appreciate quickly, and they may end up costing you a lot of money in the long term as they require you to give up a share of your home's appreciation.

Be sure you understand the pros and cons of home equity investments to decide if one is right for you. If you think this might be a good option, explore some of the best home equity investment companies below.

What is a home equity investment?

Home equity investments (HEIs) are an alternative to traditional home equity loans or lines of credit. They let you tap into your home equity. A home equity investment company pays you a lump sum, based on your home's value, so you can access a percentage of your equity. This money is an investment, not a loan.

You receive cash upfront, and the company receives an ownership stake and collects a percentage of future appreciation. Regardless of if your home increases or decreases, you have to repay the investment.

How it works

Home equity investment companies don't typically get a share of the equity you already have in your home at the time you receive an investment or benefit from equity you acquire as you pay down your mortgage. Your home is appraised when you apply, so the company knows what your house is worth now to determine what t might be worth later on.

The home equity investment company collects a percentage of your home's value when you settle the investment, based on the investment period and amount.

Home equity investments seem attractive because you can qualify for them with a low credit score, and you can avoid making payments for as long as 30 years. But you may end up paying a lot of money if your home goes up in value significantly, and the Consumer Financial Protection Bureau warns that these investments can be complicated and potentially expensive.

Compare the best home equity investment companies

Company	Maximum investment	Upfront fee	Repayment period
Hometap	$600,000	4.5%	10 years
Point1 <p>Point partners with and invests alongside the homeowner in the property. Subject to underwriting approval, Point will pay you an upfront, lump sum amount in exchange for a portion of your home’s future appreciation. Future appreciation is based on using the risk adjusted Appreciation Starting Value and calculating any gain or loss based on the final appraised value of your home at the time of exit. Point charges up to a 3.9% processing fee (subject to a $2,000 minimum) and other third party paid closing costs such as appraisal, escrow, and government fees. The term is 30 years. Point will place a lien on your home to secure performance of the underlying agreement. There are no monthly payments or interest accrual. Homeowner’s repayment amount is based on the future value of the subject property at the time of exit, as outlined in the underlying agreement.</p>	$600,000	3.9%	30 years
Unison	$500,000	3.9%	30 years
Unlock	$500,000	4.5%	10 years
Splitero	$500,000	4.99%	30 years
EquiFi	N/A	3.00%	N/A

Hometap

Hometap allows you to access up to 24.99% of your home equity, with a maximum investment amount of $600,000. This is one of the highest investment maximums we've found for HEIs.

You have 10 years to settle the investment, with no monthly payments. When you do settle, you pay Hometap a percentage of your home's value. The percentage depends on the amount of your investment, whether your home's value increases or decreases, and how long you take to settle. The longer you wait, the larger Hometap's share. You'll generally owe Hometap between 15% and 20%. You can pay this by saving, refinancing, or selling your house.

Hometap is available in just 16 states, and there are high upfront costs. This includes a fee of 4.5% of the investment amount, up to a maximum of $20,000. You'll also have to pay for an appraisal, closing, title insurance, and government recording charges (which could cost several thousand dollars).

The process of getting a home equity investment with Hometap can take some time.² <p>The timeline to funding may vary, and begins from the time the homeowner submits a completed Application and all supplemental documents are received and verified. The three-week timeframe excludes weekends and assumes the homeowner doesn’t have any undisclosed liens, uses an automated valuation model (AVM)-based virtual appraisal instead of a physical appraisal, and is current on their mortgage and property tax obligations for the previous 90 days.</p> Once you apply, Hometap must determine the market value, create an offer, and structure the investment. Once you've signed the investor agreement, you'll receive funds within four to seven days.

Visit Hometap | Learn more in our Hometap review

Point

Like Hometap, Point allows you to access up to $600,000 when it invests in your home's future value. But unlike Hometap, you can take up to 30 years to repay Point. Point also offers more flexibility than many home equity investment companies, as you have the option to take out a "Re-Point" and get a new, larger investment during your 30-year term.

Point's upfront fees are also lower, at 3.9%, though you'll still have additional costs such as appraisal fees. Point offers home equity investments in 26 states. Your house must be worth at least $155,000, and you'll need enough equity to qualify for an investment of at least $30,000. The process of securing funding can take three weeks or longer as Point completes the valuation and offer.

When your 30-year term is up, or if you wish to repay sooner, you will owe Point the original amount you repaid plus a percentage of your home's value when settling.

Visit Point | Learn more in our Point review

Unison

Unison offers a home equity sharing agreement that lets you access up to 15% of your home's equity up to a $500,000 investment (less than Hometap and Point).

Unison is available in 30 states. If you're comparing Hometap vs. Unison, you're more likely to live in a state where Unison is offered. Unison's 3.9% upfront fee is also lower than Hometap's. However, Unison's minimum credit score is on the higher end, requiring at least a 620.

Unison collects a share of your home's appreciation, typically equal to 1.5 times the percentage you borrow. And like most of the companies on our list, the amount it collects is capped to protect you.

If you're interested in Unison, you can apply online and get an estimate of your investment amount within seconds without affecting your credit. Like with the other home equity investors, you'll need to complete the application and appraisal process before getting your funds. Unison also offers an equity-sharing home loan.

Unlock

If your property is valued at $175,000 or higher and you live in an eligible area, Unlock offers the chance to access up to $500,000 by agreeing to share in your home's future value. But the requirements are steep: You'll need a minimum 500 credit score and at least 30% equity in your home to be eligible.

Unlock has a 10-year term, like Hometap, but its fees are even higher. Unlock charges 4.5% not including appraisal fees. Unlock provides home equity investments in 25 states.

Unlike other home equity investment companies, Unlock does invest in rental properties.

Unfortunately, Unlock typically takes a larger percentage of your equity even for residential homes than many competitors do. For example, while Unison usually takes 1.5 times the percentage of equity you borrow, Unlock usually takes 2 times. There is a cap on the amount you'll owe, though, which is typically a 19.9% annualized cost limit. When you borrow with Unlock, you can expect to receive your funds within 30 to 60 days.

Visit Unlock

Splitero

Splitero allows you to access up to $500,000 in equity and make no payments for the longer of 10 years or the time remaining on your first mortgage, up to 30 years. Your home must be worth at least $200,000, owner-occupied, and a single-family home, condo, townhome, or property with four or fewer units.

There's a 500 minimum credit score to qualify with Splitero, which is very low, and why we recommend Splitero if you have bad credit. You can get pre-qualified within one to two business days, and receive up to 25% of your home's initial appraised value. You'll pay back a percentage of appreciation, with a cap of a 19.99% maximum equivalent annual rate on the value Splitero can access.

As for drawbacks, Splitero is available only in 14 states. And unfortunately, it also charges a very high 4.99% upfront origination fee.

EquiFi

EquiFi differs from other home equity investment companies in several ways. It allows you to access a substantial percentage of your home's value, up to 35%, which is higher than many competitors. Unfortunately, it is currently only available in California, although EquiFi indicates it is "ready to go" in 16 other states as well.

Where it is available, EquiFi is more affordable than many competitors. EquiFi charges only a 3% disbursement fee, which is reduced for larger co-investments, and third-party transaction fees. EquiFi only offers its product for owner-occupied homes, though, as do many other home equity investment companies.

EquiFi does not state a maximum investment limit on its website, nor does it disclose the minimum credit score needed to qualify.

Pros and cons of home equity investments

Pros of home equity investments

• You can access equity without making monthly payments
• The amount you pay can end up lower if your home doesn't go up in value much
• You can access a substantial amount of your equity

Cons of home equity investments

• Upfront costs can be very high
• You won't know total borrowing costs right away
• You may struggle to come up with a lump sum to repay the investment plus the home's appreciation when the repayment deadline approaches

Home equity investment contracts require an appraisal and come with significant upfront fees, but the tradeoff is that you don't have to make monthly interest payments. These contracts can be structured in complicated ways, so you should understand what you're agreeing to when you enter into this type of transaction. You should also compare home equity investments with home equity loans and lines of credit, which allow you to access equity but have clear repayment terms.

Is a home equity investment a good option for you?

Home equity investments may be a good option if you need to access the equity in your home, especially if you can't qualify for a conventional home equity loan or line of credit because of your credit score or other limiting factors. If you want to access equity without making monthly loan payments, these investments may be a good option.

However, you should be aware of the costs and complexities of these products. If you live in an area where your home is likely to appreciate or go up in value substantially, you could also end up paying much more for this type of financial product. In some circumstances, you could even be forced to refinance or sell when your settlement is due.

Alternatives to home equity sharing

Before you choose a home equity sharing agreement, be sure you understand a few alternatives.

Home equity loans

Home equity loans allow you to borrow a lump sum amount based on the equity in your home. You start making payments right away and usually repay the amount borrowed over 10 to 30 years. Your payment is fixed because you generally have a fixed rate, so you know total borrowing costs upfront. This makes these loans a safe and predictable alternative to home equity investments, which are calculated based on your home's value at settlement.

A home equity loan is similar to a cash-out refinance loan, which pays off and replaces your active mortgage with a larger loan and pays you the difference in cash. But between a cash-out refinance vs. a home equity loan, a home equity loan doesn't affect your mortgage.

Home equity lines of credit (HELOCs)

Rather than accessing a lump sum when you take out a HELOC, you instead get access to a line of credit based on the amount of equity in your home. You can draw from the line of credit as needed and make interest-only payments until the repayment period begins.

Home equity lines of credit usually have variable rates. And because you can draw from the line of credit at any time, you don't always know exactly how much you'll borrow. Still, these loans provide more predictability than home equity sharing agreements because the amount you owe is based on what you borrow, not on how much your home is worth when you settle.

When comparing a HELOC to a home equity loan, HELOCs provide more flexibility and are ideal when you don't know exactly how much money you need or require as much cash upfront.

Personal loans

Personal loans aren't tied to your home equity, so they don't require you to put your house at risk if you can't repay them. The most popular personal loans are unsecured, meaning they don't require collateral. Instead, the amount you can borrow is based on your income, credit, and other financial factors. Because they're a form of unsecured debt, personal loans are riskier for lenders than home equity loans and lines of credit, so their (fixed) interest rates are often higher. You'll make set monthly payments until your term is up.

FAQs

Bottom line

Home equity investments are an option for people who want to access equity without making payments for a long time, but you should be aware of their potentially large expenses. If you want to get a home equity investment, be sure you understand how much it will cost you upfront and over time before moving forward.

You can also explore alternatives, including home improvement loans, cash-out refinance loans, reverse mortgages, and home equity loans or lines of credit to be sure you understand all your options before moving forward.

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