Introduction
Owning a home builds wealth through equity, which you can tap into for cash without selling your property. In 2025, options like home equity loans, lines of credit (HELOCs), and reverse mortgages remain popular, but home equity sharing agreements are gaining traction. These agreements let you sell a portion of your home’s future value for a lump sum, with no interest or monthly payments. This guide explores how home equity sharing works, its pros and cons, and the top companies to consider, tailored for homeowners in Ghana, the US, Canada, and the UK.
Why Home Equity Sharing Matters in 2025
Home equity is at record highs, with US homeowners holding $12 trillion in tappable equity in 2024, per ICE Mortgage Technology. In Ghana, rising property values in cities like Accra make equity sharing viable. Unlike traditional loans, equity sharing offers cash without debt, ideal for paying off high-interest debt, funding renovations, or investing. This guide helps beginners understand this innovative option and choose the best approach.
What Is Home Equity Sharing?
Home equity sharing, or home equity investment, involves selling a portion of your home’s future equity to an investor for a lump sum. For example, if your home has $100,000 in equity, you might sell 20% for $20,000. At the end of the term (e.g., 10–30 years), you repay the investment plus a share of your home’s appreciation. If the home’s value rises to $150,000, you’d owe the investor their share of the $50,000 gain. There’s no interest or monthly payments, but you must repay the lump sum at term’s end, often by refinancing or selling.
Key Features
- No Debt: Equity sharing isn’t a loan, so it doesn’t accrue interest or require monthly payments.
- Flexible Use: Use the cash for renovations, debt repayment, or investments.
- Risk-Sharing: If your home’s value drops, your repayment may decrease, unlike fixed loans.
- Repayment Terms: Terms range from 10–30 years, with no prepayment penalties.
Top Home Equity Sharing Companies in 2025
We evaluated major home equity sharing companies based on fees, payoff terms, geographic availability, credit score minimums, loan amounts, and eligible property types. Here are our top picks for September 2025.
1. Point: Best Overall
Why It Stands Out: Point offers wide availability, low fees, and flexible terms, making it ideal for diverse homeowners.
Highlights:
- Upfront Fee: 3.9% of payment amount.
- Availability: 26 states + Washington, D.C. (US-focused, not available in Ghana, Canada, or UK).
- Loan Amounts: $30,000–$500,000 (up to 20% of home value).
- Minimum Credit Score: 500.
- Payoff Term: 30 years.
- Property Types: Single-family homes, condos, 1–4-unit multifamily, townhomes, investment properties, second homes.
Why Choose Point: Its low credit score requirement and long payoff term suit homeowners and investors.
Region-Specific Tip: In the US, ideal for low-credit homeowners needing long-term flexibility.
2. Hometap: Best for High Loan Amounts
Why It Stands Out: Hometap offers the highest loan amounts, up to $600,000, perfect for those needing significant cash.
Highlights:
- Upfront Fee: 4.5% of payment amount.
- Availability: Limited to select US states (not in Ghana, Canada, or UK).
- Loan Amounts: Up to $600,000 (25% of home value).
- Minimum Credit Score: 550.
- Payoff Term: 10 years.
- Property Types: Single-family homes, condos, vacation properties, rentals, 1–4-unit multifamily, manufactured homes.
Why Choose Hometap: Great for accessing large sums, especially for vacation or rental properties.
Region-Specific Tip: In the US, use for major expenses like home renovations or debt consolidation.
3. Unlock: Best for Low Equity Requirements
Why It Stands Out: Unlock requires only 20% equity, making it accessible for newer homeowners.
Highlights:
- Upfront Fee: 4.9% of payment amount.
- Availability: 19 US states (not in Ghana, Canada, or UK).
- Loan Amounts: $30,000–$500,000.
- Minimum Credit Score: 500.
- Payoff Term: 10 years.
- Property Types: Single-family homes, condos, 2–4-unit multifamily, townhomes, primary residences, second homes, rentals.
Why Choose Unlock: Ideal for investors or homeowners with less equity to tap.
Region-Specific Tip: In the US, perfect for real estate investors expanding portfolios.
4. Unison: Best for High Credit Scores
Why It Stands Out: Unison offers a below-market interest rate for those with strong credit, with low monthly payments.
Highlights:
- Upfront Fee: 3% origination fee.
- Availability: 9 US states (not in Ghana, Canada, or UK).
- Loan Amounts: $30,000–$400,000 (up to 35% of home value).
- Minimum Credit Score: 680.
- Payoff Term: 10 years.
- Property Types: Owner-occupied single-family homes, townhouses, condos.
Why Choose Unison: Best for creditworthy homeowners seeking lower fees.
Region-Specific Tip: In the US, ideal for primary homeowners with strong credit.
5. Splitero: Best for Flexible Terms
Why It Stands Out: Splitero offers repayment terms up to your mortgage’s duration and fast approvals (1–2 days).
Highlights:
- Upfront Fee: 4.99% of payment amount.
- Availability: 13 US states (not in Ghana, Canada, or UK).
- Loan Amounts: Up to $500,000 (25% of home value).
- Minimum Credit Score: 500.
- Payoff Term: Up to your mortgage term (10–30 years).
- Property Types: Owner-occupied single-family homes, condos, townhomes, 2–4-unit multifamily.
Why Choose Splitero: Flexible terms and an affiliated brokerage simplify repurchasing or selling.
Region-Specific Tip: In the US, great for homeowners with long-term mortgages.
How Home Equity Sharing Works
In a home equity sharing agreement, you sell a percentage of your home’s future equity to an investor for a lump sum. For example, if your home is worth $300,000 with $100,000 in equity, you might sell 20% ($20,000) for cash. At the end of the term, you repay the $20,000 plus a share of any appreciation (e.g., 20% of a $50,000 gain = $10,000). If the home’s value drops, your repayment may decrease, sharing risk with the investor. Repayment typically occurs when you sell the home, refinance, or reach the term’s end.
Eligibility Requirements
- Credit Score: Most companies accept scores as low as 500, more lenient than traditional loans.
- Loan-to-Value (LTV) Ratio: Your mortgage balance plus the equity share must be below 70% of your home’s value.
- Equity: At least 20–30% equity is required, depending on the company.
- Property Types: Varies by company, from single-family homes to rentals or multifamily units.
Region-Specific Note: In Ghana, where equity sharing is less common, consider local microfinance or cooperative loans for similar cash access.
Pros and Cons of Home Equity Sharing
Pros
- No Debt or Monthly Payments: Access cash without interest or monthly obligations.
- Flexible Use: Use funds for renovations, debt repayment, or investments.
- Lenient Qualifications: Low credit score requirements (500–550) make it accessible.
- Risk-Sharing: If home value drops, your repayment may decrease.
Cons
- Loss of Ownership Share: Investors become partial lienholders, reducing your control.
- Appreciation Costs: You owe a share of your home’s value increase, which can be significant.
- Lump Sum Repayment: A large payment is due at term’s end, potentially requiring a sale or refinance.
- No Tax Deduction: Unlike mortgages, equity sharing offers no interest deduction.
Alternatives to Home Equity Sharing
If equity sharing isn’t right for you, consider these options:
- Cash-Out Refinance: Replace your mortgage with a larger one, taking the difference in cash. Ideal for large expenses but increases debt.
- Home Equity Loan: Borrow a fixed sum against your equity with predictable payments. Best for good-credit homeowners.
- HELOC: Access a revolving credit line for ongoing expenses. Flexible but requires discipline.
- Personal Loan: Borrow $1,000–$100,000 without using home equity. Higher interest rates but no property risk.
Region-Specific Tip: In Ghana, explore mobile money loans or SACCOs for smaller cash needs without equity.
How Much Can You Save or Earn?
Equity sharing can provide $30,000–$600,000, depending on your home’s value and the company’s limits. For example:
- A $20,000 lump sum from a $100,000 equity share can pay off high-interest debt, saving $5000/year in interest (at 20% APR).
- Investing the lump sum in a side hustle (e.g., blogging) could earn $1000+/month, per SmartMoneyMint’s Side Hustles Guide.
- Total savings/earnings: $5000–$12,000+/year, depending on use.
Tips for Success
- Compare Options: Check fees, terms, and availability using tools like Compare.com (US/UK).
- Plan Repayment: Save or invest the lump sum to cover the buyback cost.
- Use Free Tools: Track finances with YNAB or Google Sheets to manage funds.
- Seek Advice: Consult a financial advisor, especially in Ghana, where equity sharing is less common.
- Stay Informed: Visit SmartMoneyMint’s Personal Finance Tips for more strategies.
Conclusion
Home equity sharing in 2025 offers a unique way to access cash without debt, ideal for homeowners in the US and beyond. From Point’s low fees to Splitero’s flexible terms, these options suit various needs. Explore SmartMoneyMint for more personal finance insights. Considering equity sharing? Share your thoughts in the comments or on social media!
Disclaimer: SmartMoneyMint may earn commissions from affiliate links in this article, but all recommendations are based on research and expertise.
