For many parents, helping their adult children purchase a first home feels like a natural extension of building generational stability. But with today’s high housing prices, rising interest rates, and down payment challenges, even well-intentioned parents may find it hard to provide financial help without putting strain on their own finances.
That’s where a shared appreciation loan, like Unison’s Equity Sharing Home Loan, may offer a smart solution. This innovative product lets homeowners access up to $400,000 from their home equity, with monthly payments that are typically half the cost of traditional loans. It’s designed to unlock a significant amount of cash, while offering maximum flexibility and low payment pressure.
Here’s how it works – and why more parents are turning to this model to help the next generation become homeowners.
The Down Payment Challenge for First-Time Buyers
It’s no secret that housing affordability is one of the biggest barriers for young adults today. Rising home prices, student loan debt, and limited savings make it difficult for many to put together a competitive down payment – especially in high-cost metro areas.
At the same time, many parents have substantial equity in their homes, built over decades of ownership and rising property values (quite possibly in the very same metro area). That equity, however, is often locked up and unavailable without refinancing, selling, or taking on large new debt.
A New Option: The Equity Sharing Home Loan
Unison’s Equity Sharing Home Loan offers a smart alternative. It’s a product that lets you tap into your home’s equity to fund large goals – like helping a child buy a first home – while retaining control and flexibility, and keeping monthly payments low.
Unlike traditional home equity loans:
You make interest-only payments for 10 years – often around half the cost of a standard second mortgage
There’s no prepayment penalty
When you sell or refinance, Unison shares in a portion of your home’s future appreciation
In short: You get cash now, flexible payments along the way, and Unison becomes a partner in your home’s future value – not just a lender.
How It Can Help Fund a First-Time Home Purchase
Whether your adult child is close to buying or just starting their journey, a more robust down payment can:
Open the door to more competitive offers
Reduce or eliminate the need for mortgage insurance
Lower their long-term monthly payments
Improve loan terms and interest rates
By using an Equity Sharing Home Loan, you can provide that down payment support without liquidating retirement accounts, selling investments, or downsizing yourself. And because the monthly payments are interest-only, they’re far more manageable over the 10-year term — giving you flexibility to support your child’s future without sacrificing your own.
Who This Strategy May Work Best For
This approach may be a good fit if:
You have significant home equity and stable income
You want to help your children become homeowners sooner
You prefer to keep monthly payments low and manageable
You’re comfortable with a shared appreciation model, and plan to sell or refinance eventually
It’s also worth considering if you’ve been debating between offering a cash gift, co-signing a mortgage, or tapping retirement funds – each of which can come with their own risks and downsides.
Things to Consider Before Moving Forward
The Equity Sharing Home Loan isn’t free money. Unison will share in the future appreciation of your home, and that’s the trade-off for lower monthly payments.
Make sure to:
Understand the shared appreciation structure
Consider your long-term homeownership plans
Speak with a financial advisor or estate planner if you're balancing multiple financial goals
Still, for many homeowners, the math makes sense: flexible monthly payments now, with the ability to help your child build a future, get into a competitive housing market, and start the next chapter of their life – today.
Final Thoughts
Helping your children become homeowners is a gift that can last generations. With the Equity Sharing Home Loan from Unison, you can tap into the wealth you’ve built in your home and turn it into real, tangible support for the next generation. All without compromising your own financial comfort.
If you're ready to explore how this strategy could work for your family, start with a quick eligibility check or learn more at Unison.com.
Disclaimer: This content is for informational and educational purposes only and does not constitute financial, legal, or lending advice. Loan terms and availability vary by lender and state. Consult a qualified financial professional or lender for personalized guidance tailored to your situation.
About the Author
Unison
We're the pioneers of equity sharing, offering innovative ways for you to gain access to the equity in your home. For more than a decade, we have helped over 12,000 homeowners to pursue their financial goals, from home renovations to debt consolidation, retirement savings, and more.
