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When a health crisis hits, the focus should be on recovery, not paperwork. An Equity Sharing Agreement, also known as an HEI (Home Equity Investment), may offer a way to use your home’s value to pay for care, without a monthly payment.
Instead, you share in the future change of your home’s value, paid when you sell your home, buy out the agreement, or after 30 years pass. Equity sharing can be a way to reduce the burden of debt while avoiding a new monthly payment in your family’s budget.
How To Pay For a Medical Emergency
Meet David. David has lived in his family home for over 15 years and has built up a lot of equity. Last year, he faced a sudden heart condition that required surgery and weeks of specialized care. Even with insurance, David was left with $40,000 in out-of-pocket medical expenses. Because he needed to take time off work to heal, he didn't have the extra cash to pay these large bills all at once.
Why a HELOC Wasn't the Answer
David looked into a traditional Home Equity Line of Credit (HELOC). However, he quickly realized that a HELOC would require him to make monthly interest payments immediately. Since his income was lower while he was recovering, he was worried about falling behind on payments. He also thought about using high-interest credit cards, but he knew that would lead to a cycle of debt that could take years to break. He needed a way to get $40,000 without the pressure of a new monthly obligation.
An Alternative Approach: A Partnership with Unison
David chose to move forward with an Equity Sharing Agreement. Unison provided him with the $40,000 he needed to settle his medical accounts. In return, Unison will share in a portion of his home’s future change in value when David eventually decides to sell the home or the agreement reaches its term, partnering in both potential growth or loss.
- No Monthly Payments: David did not have to add a new expense to his monthly budget.
- Zero Interest: There is no interest accruing on the funds he received, because it is not a loan.
- Focus on Health: With the bills paid, David could focus entirely on his physical therapy and getting back to work.
The Outcome: Peace of Mind
By using an Equity Sharing Agreement, David was able to protect his credit and keep his home while handling his health needs. "He didn't have to sell his house or add a new monthly debt payment during his recovery."
As David shared: "The last thing I wanted to think about while recovering from surgery was how to afford a new loan payment. Unison partnered with us, and gave me the $40,000 I needed to clear my medical debt. It gave my family the breathing room we truly needed during a scary time."
If you are facing high costs from a medical event, your home may be able to help. Unison will provide a path that prioritizes your financial flexibility when David eventually decides to sell the home or the agreement reaches its term, partnering in both potential growth or loss.