Hometap vs. Unison [2025]: Which is Better For Tapping Into Your Home’s Equity?

Hometap vs. Unison

Equity amount available	Up to $600,000 or up to 25% of your home's value	Up to $500,000 or 15% of your home's value
Fees	4.5% of investment plus signing costs 15% to 20% of the home's market value at settlement	One-time 3.9% transaction fee plus appraisal and settlement costs 20% to 60% of the home's change in value at settlement
Term	Up to 10 years	Up to 30 years
Max loan-to-value ratio (LTV)	75%	70%
Credit score needed to qualify	550	680
	Visit Hometap	Visit Unison

When you should choose Hometap

Consider Hometap over Unison if: 

• You want to try to access more of your home's equity.
• You have short-term plans for the house.
• You want a lower investment multiplier.

You want to try to access more of your home's equity

Hometap allows homeowners to receive investments of up to 25% of their home's value, up to $600,000, minus any outstanding loans (if applicable). Unison only allows homeowners to tap into a maximum of 15% of the home's value, or up to $500,000. If you have a large project planned or significant debt, the potential 10% difference could be huge. 

You'll move within 10 years

Unless you plan to move within the next few years, a home equity investment with Hometap could be expensive. The term of the investment is 10 years. And if you decide not to sell the house at that point, you'd be required to buy out the investment. Unless you have a large stash of cash lying around, you'd likely have to borrow those funds, which could get costly.

You want a lower investment multiplier

Companies like Hometap invest in your equity to make money. To do this, it uses a multiplier to calculate profits. This multiplier is based on the equity of the appreciated value. Hometap has a tiered system based on how long you keep the property, versus Unison, which generally charges four times the percentage invested. Here's Hometap's structure:

• Settle in 1 - 3 years: 15%
• Settle in 4 - 6 years: 17.8%
• Settle in 7 - 10 years: 20%

For example, if you accessed 10% of your equity and sold the home within three years, Hometap would receive 15% of the home's market value at the time of the sale. Let's say your home was worth $200,000, and you received an investment of $20,000. You sell the home for $250,000, so Hometap's 15% share would be $37,500. However, thanks to its "Hometap Cap," its share would actually be less than that.

If you waited and sold the house in 10 years (the maximum investment term), Hometap would receive a 20% share of the final home value. If the home value was $265,000, say, its share would be $53,000 ($265,000 x 0.20).

The longer you wait to settle the investment, the higher the returns Hometap expects. Of course, this depends on the market, home values, and Hometap's strategy for your specific situation, as each one differs. This is just a generalized example.

When you should choose Unison

On the flip side, Unison might be a better fit for you if: 

• You plan to stay in the home long-term
• You have a lot of equity in your house

You don't have plans to move soon

Unison's agreement lasts for 30 years, which gives you more time to decide what you want to do with the house, versus Hometap's ten year policy. However, the longer you keep the property, the more likely it is that you'll see greater appreciation and therefore owe more money.

You have a lot of equity in your house

Unison automatically reduces the appraised value of your house by 5%. They call it the Risk Adjustment and base the amount of cash you can get on the lower amount. They state this helps account for uncertainties in appraisals and enables them to fund the loan faster, but it's a significant hit in value. For example, if your home is worth $500,000, they would use $475,000 as the Original Agreed Value, leaving you with less possible funds.

Key differences

Before you make a final decision about choosing between Hometap and Unison, consider these important differences:

Credit score differences

Hometap requires a 550 minimum credit score (although they state most homeowners they work with have a 600 score). Unison requires a 680+ credit score, which is harder to achieve. A 500 credit score is considered a poor credit score, while a 680 credit score is considered a good credit score. If you know you have credit troubles, Hometap may be the better option.

Winner: Hometap because they allow lower credit scores.

State eligibility

Hometap only works with homeowners from 17 states, and Washington, D.C., while Unison home buyers can live in one of 30 states and territories, including Washington, D.C. If you don't live in a state where Hometap operates, Unison is the better option.

Winner: Unison because they are more widely available.

Equity differences

Unison can invest up to $500,000, or 15% of your home's value, while Hometap can invest up to $600,000, or 25% of your home's value. The difference between the two may help you choose between one or the other, as $100,000 is a big difference.

Winner: Hometap because you can potentially access more cash (although this depends on the investment you're eligible to receive).

Which home equity company should you choose?

First, you'll want to decide if Hometap's shorter time frame of 10 years will meet your needs. Because this is a shorter time period than Unison's 30-year term or a standard 30-year mortgage, it could involve some risk. At the 10-year mark, you'll have to pay off your investment by buying Hometap out with savings, taking out a loan, or selling your home. On the other hand, Unison doesn't require you to sell your home or buy the company out until 30 years have passed.

Here's how this could work out in each scenario:

With Hometap: Let's say you own a property with a current market value of $500,000. With Hometap, you could unlock a shared equity investment of up to $125,000 (up to 25% of the current market value). Let's say you decide just to borrow $75,000. You sell your home for $600,000 in seven years, so Hometap will take a 20% share of your home's value for a total of $120,000 ($600,000 x .2 = $120,000).

With Unison: Let's take that same scenario and say you own a house valued at $500,000. You could unlock up to a maximum of 15%, which is $75,000. Unison also reduces your home's appraised value by 5.0% to find your home's original agreed value, which is $475,000.

Let's say that you still sell your home for $600,000, but, though you may view that as a profit of $100,000, in Unison's eyes it's $125,000. Of that amount, Unison gets four times the percentage they gave you (4 x .15 = .6).  That totals to 60% of the appreciation, so $75,000 (.6 x $125,000 = $75,000). Your overall payment in this case would be $150,000 (a repayment of your original $75,000 from Unison plus its $75,000 share of the appreciation).

Other home equity options

Do you think you're more suited to a traditional home equity product, such as a home equity line of credit (HELOC) or home equity loan? If you're nervous about coming up with the money to pay back the entire investment and a percentage of your home's appreciation at the end of the term period, you may want to stick to a traditional home loan option.

Home equity loan

A home equity loan, also known as a second mortgage, lets you borrow from your home equity by getting a loan secured by your property that you can use in any way you want. You must begin making payments immediately, which typically includes both principal and interest.

You receive the funds in one lump sum and cannot access any future home equity unless you borrow another home equity loan. Most home equity loans have a fixed interest rate, so you don't have to worry about your payment changing.

HELOC

A HELOC, on the other hand, allows borrowers to access their home's equity using the home as collateral for a line of credit. You only need to borrow what you need as you need it. As you repay your outstanding balance, your credit available is replenished up to a specific amount with interest. It's a revolving line of credit and works a lot like a credit card.

Unlike home equity loans, HELOCs have a variable interest rate, and during the draw period (usually ten years), you have the option to make interest-only payments, but this won't replenish your credit line. After the draw period expires, you must make principal and interest payments for the remaining term (usually 20 years) and cannot access any further equity.

Reverse mortgage

If you're 62 or older, you may also consider a reverse mortgage. A reverse mortgage is a loan in which you borrow from the equity in your home as long as you live in the home as your primary residence. Your lender makes payments to you, and you no longer need to make mortgage payments, which is why it's called a "reverse mortgage." You must still pay homeowners insurance and property taxes.

Since a reverse mortgage is a loan, your heirs pay back the reverse mortgage when you die, or you pay the reverse mortgage company back when you leave the home or move away. This means your heirs could receive less inheritance, and you may run the risk of taking a reverse mortgage out too early in your retirement years.

Learn more about how to get a loan to help you decide between a home equity loan, HELOC, reverse mortgage, and shared appreciation companies.

FAQs

Bottom line

Hometap and Unison help homeowners tap into their home's equity without taking out a home equity loan or HELOC. The home equity investment is an equity agreement that allows you to use your home's equity today in exchange for a part of its future value.

Unison is much more widely available, but Hometap allows a higher LTV and lower credit score. Unison also charges a much higher fee versus Hometap. So if you're lucky enough to live in a state where Hometap operates, I'd choose them first, but Unison is a solid option too.

Learn More

• 
  Access your home’s equity without monthly payments
• 
  Flexible qualification requirements including a minimum FICO score as low as 550
• 
  Dedicated investment manager to guide you

VS

Learn More

• 
  Pay a fraction of what you would with a normal home equity loan.¹ <p>Unison’s home equity agreement allows you to access up to $400,000 of your home’s equity with potentially lower and more stable payments compared to traditional home equity loans, HELOCs, or second mortgages, by sharing in the future appreciation or depreciation of your home’s value. Lower payments are not guaranteed and depend on your home’s future value, market conditions, your financial situation, and agreement terms. Instead of paying full interest monthly, you may defer a portion of the payment, but you could owe more or less than the borrowed amount at the end of the term (e.g., when you sell your home or the term expires), based on your home’s value change. Eligibility is subject to factors including your home’s value, location, and financial profile; not all applicants will qualify, and approval is not guaranteed. Certain fees, such as appraisal or transaction fees, may apply. Consult a financial advisor and review full terms and conditions at <a href="https://www.unison.com/equity-sharing-home-loan">www.unison.com/equity-sharing-home-loan</a> before applying.</p>
• 
  No fees or penalties if you pay back early.
• 
  Get up to $400K now with low payments by sharing future home appreciation.