Innovative Equity Sharing: A New Approach to Home Financing

Owning a home comes with hidden financial power—your equity. Yet, tapping into it without refinancing your low-rate mortgage can be tricky. That’s where equity sharing steps in, offering a smart alternative to traditional loans.

Unison, backed by Carlyle’s $300M investment, now provides a unique solution. Their Equity Sharing Home Loan lets you access cash while keeping your current mortgage. No need to sacrifice low monthly payments or favorable terms.

With $32 trillion in untapped U.S. home equity, this model helps homeowners like you. Whether for renovations, debt consolidation, or financial security, it blends flexibility with affordability. Ryan Downs, Unison’s President, highlights its versatility for diverse needs.

What Is Innovative Equity Sharing?

Imagine unlocking cash from your home without refinancing or monthly payments. Equity sharing agreements make this possible by letting you partner with investors. They fund part of your property’s value in exchange for a share of future appreciation—no strings attached to your current mortgage.

Breaking Down Equity Sharing Agreements

These deals work like co-ownership. Investors provide cash upfront—say, for a down payment or renovations—and earn returns only if your home’s value rises. Unlike traditional loans, there’s no fixed repayment schedule. If your property loses value, investors absorb the loss.

Unison’s model adds flexibility. They offer below-market interest rates and split appreciation (e.g., 25% of growth). For example, if your home gains $100,000, the investor gets $25,000. This shared appreciation approach keeps costs predictable.

How It Differs From Traditional Mortgages

Traditional mortgages require monthly payments and full repayment. With equity sharing, you skip both. Investors profit solely from appreciation, aligning their success with yours. Families often use this for generational wealth—like parents helping kids buy homes.

Risks exist. If your home’s value drops, investors lose money. But you’re not stuck paying back a loan that’s worth more than your property. It’s a win-win for long-term stability.

How Innovative Equity Sharing Works

Getting cash from your home’s value doesn’t always mean refinancing or taking on debt. Equity sharing offers a fresh path. You partner with investors who provide funds in exchange for a portion of your home’s future growth. No monthly payments. No rate hikes on your current mortgage.

The Partnership Between Investors and Homeowners

Investors give you money upfront—usually 10-30% of your home’s value. In return, they get a percentage of the appreciation when you sell or refinance. You keep full control of the property. They take the risk if values drop.

Homeowners handle all maintenance and costs. Investors stay passive. This setup works well for those who want cash now but believe their home will grow in value over time.

Unison’s Home Loan: A Real-World Example

Unison makes the process simple. First, you apply online. If approved, you get cash up to 70% of your home’s worth. You repay the amount plus a share of the appreciation later—typically 25-40% of the growth.

Their terms stand out. You get below-market interest rates and can make interest-only payments. Early repayment has no penalties. After three years, remodeling credits may reduce what you owe.

Who Qualifies and Key Details

Unison looks for homeowners with:

Credit score of 680+
Debt-to-income ratio below 40%
Property value within their service areas

Unlike HELOCs with fluctuating rates, this option locks in predictable costs. Compared to cash-out refinancing, you keep your current mortgage terms. It’s a smart choice if you have a low existing rate.

For more on how these agreements function, see our guide on home equity sharing.

Benefits of Choosing Equity Sharing Over Traditional Loans

Traditional loans can drain your budget, but equity sharing offers a smarter way to access cash. Unlike refinancing or HELOCs, this model keeps your existing mortgage intact while providing financial flexibility. Here’s why it’s gaining traction.

Lower Monthly Payments and Flexible Terms

Unison’s interest-only payments cut costs significantly. Their below-market rates reduce monthly payments by 30–50% compared to HELOCs. You can even defer payments until your home appreciates.

Preserve low-rate mortgages: Critical if you locked in a sub-4% rate.
No penalties: Repay early or refinance without fees.
Investor confidence: Backed by Carlyle’s $300M investment, proving the model’s profitability.

Accessing Home Equity Without Selling or Refinancing

Need cash but don’t want to refinance? Equity sharing lets you tap into your home equity without altering your current loan. Investors cover upfront costs in exchange for a share of future appreciation.

Compare it to risky alternatives:

Personal loans: Higher interest rates and rigid terms.
Credit cards: Sky-high APRs and debt traps.

With equity sharing, you get cash now and repay only if your home’s value rises. It’s a win-win for long-term financial health.

Conclusion

Financial flexibility meets homeownership with equity sharing solutions. This model offers lower payments, no refinancing, and shared risk—keeping your current mortgage intact. Institutions like Carlyle and Scale LLP now back these agreements, signaling trust in their long-term value.

For homeowners, the benefits are clear: access cash without debt and align repayment with your home’s growth. Whether for renovations or financial goals, it’s a modern take on tapping equity.

Ready to explore your options? Check Unison’s eligibility tool to see how equity sharing can work for you.