Sponsored by Unison Agreement Corp.
If you own a home, there’s a good chance you’re sitting on a significant amount of equity. The challenge? Most of it is trapped in your property – which means it can’t help you cover pressing needs like renovating an aging home, paying down debt, saving for retirement, or investing in new opportunities.
Traditionally, homeowners have turned to home equity loans, HELOCs, refinancing, or even reverse mortgages to access cash. But these are all forms of debt that come with monthly payments and interest that can strain your budget, especially in today’s economy.
Enter the Equity Sharing Agreement.
What Is an Equity Sharing Agreement?
Simply put, equity sharing agreements, like those from Unison, let you tap into your home equity without taking on debt. You receive cash based on a percentage of your home’s current value, and in return, you agree to share a portion of your home’s future change in value with your partner. You don’t make monthly payments or accrue interest – instead, you pay back the sum borrowed, along with a share in the change of your home’s value, when the agreement ends (usually, when you sell the home).
Key points:
- Zero monthly payments.
- Zero interest.
- You stay the homeowner and remain in control of your home.
- The agreement ends when you sell your home, or at the end of the set term (up to 30 years).
Think of it like this: when you unlock your equity in this way, a partner like Unison is investing in your home alongside you. If the home increases in value, they share in that upside; if the value doesn’t change much, their return is lower. Unlike a loan, there’s no built-in interest. Your partner’s “return” comes from the home’s appreciation.
How an ESA Works, Step by Step
- Home Appraisal – An independent appraiser evaluates your property, noting its condition, features, and comparable local sales.
- Starting Value – The appraised value is usually adjusted slightly (for example, Unison makes a 5% risk adjustment) to establish the agreement’s “starting value.”
- Unlock Cash – You can access a set percentage of the home’s value (commonly up to 15%), which you can use however you like; renovations, debt payoff, investments, or other priorities.
- Agreement Term – Unison’s equity sharing agreement lasts up to 30 years. You can settle it early if you sell or choose to buy out the agreement.
- Ending Value – When it’s time to settle, another appraisal determines the home’s “ending value.” The change from the starting value is used to calculate what you owe: the original cash sum, plus a percentage of the home’s appreciation (or depreciation).
- Flexible Payoff – You pay your partner their share either at sale or buyout. The rest is yours.
What an ESA Isn’t
To be clear:
- It’s not a traditional loan — there’s no interest or monthly payment.
- It’s not selling your home — you keep full ownership and control.
- It’s not “free money” — you’re giving up a portion of your home’s future value.
In short, it’s a partnership built primarily around your home’s potential. It’s flexible, transparent, and designed to let you use your equity on your own terms, without another monthly payment weighing on your budget.
Who Might Benefit from Equity Sharing?
An ESA can make sense for homeowners who:
- Want to access equity without adding monthly debt obligations.
- Have substantial equity, but limited cash flow.
- Want flexibility to fund renovations, consolidate debt, save for retirement, or pursue other financial goals.
- Prefer a partner who invests alongside them in their home’s future, instead of a traditional lender.
Who Might Need to Think Twice?
Equity sharing isn’t for everyone. You may want to reconsider if:
- You plan to sell your home in the near future.
- You prefer fixed monthly payments and predictable, ongoing costs.
- You’re uncomfortable sharing any of your home’s future appreciation.
Remember: every homeowner’s situation is unique. And equity sharing agreements aren’t necessarily “better” or “worse”. They’re a flexible, innovative alternative that will fit some situations better than others.
Benefits of an Equity Sharing Agreement
The most obvious benefits are:
- No monthly payments – freeing up cash flow.
- No interest charges – unlike loans or HELOCs.
- Flexibility – use the funds however you like.
- Aligned incentives – your partner benefits when your home appreciates, so they have a stake in your success.
With Unison, homeowners also get guidance throughout the process, access to ongoing resources, and, after three years, can apply for a Remodeling Adjustment. It’s a feature designed to help homeowners keep more of the value of their home at the end of the agreement, if they've made home improvements that have contributed to the increase.
A Clear, Flexible Way to Access Your Equity
Equity sharing agreements let homeowners tap into their home’s value without creating new monthly debt, while preserving the chance to benefit from future appreciation.
If you’ve been considering ways to access equity for renovations, debt consolidation, or financial flexibility, an equity sharing agreement could be a straightforward, honest alternative to explore.
And with Unison, you have a true partner in the process – transparent, supportive, and aligned with your homeownership goals. If you're ready to explore how equity sharing can work for you, start with a quick eligibility check (with zero impact on your credit!) or learn more at Unison.com.
Sponsored by Unison. This is promotional content and not financial advice. Consult a qualified professional for personalized guidance. Important Disclosures: The Unison Equity Sharing Agreement is offered by Unison Agreement Corp. and is not a loan. Available in select states only (currently 26 states ; see unison.com for details and eligibility). No monthly payments or interest charges, but a 3% origination fee plus standard third-party closing costs (e.g., appraisal, title, escrow) apply. Pre-qualification involves a soft credit check (no impact to your credit score) and income verification to ensure you can comfortably continue owning your home. Credit scores 620+ (mid-FICO) welcome. Unison shares in your home’s future change in value (appreciation or depreciation)—not your existing equity—and both parties benefit if the home value rises or share in losses if it declines. Payment occurs upon sale, buyout, refinance, or after 30 years. Home values can fluctuate; consult a financial advisor. Terms subject to change. Not available to residents of NY, ND, or where prohibited.