For many homeowners, a large portion of their wealth lives inside their home. On paper, it looks substantial. In real life, it can feel out of reach.
Traditional ways of accessing equity — like home equity loans or HELOCs — typically mean adding another monthly payment, often with steep interest rates. That works for some people, but for many, it just adds more pressure.
An Equity Sharing Agreement with Unison is structured differently.
It isn’t a loan. There’s no interest rate. There are no required monthly payments.
Instead of borrowing money against your home, you’re converting a portion of your home equity into cash today. In return, Unison shares in the future change in your home’s value when the agreement ends.
How It Really Works
When you enter into an agreement, you receive an Initial Payment. You remain the full owner of your home. You continue paying your mortgage as usual. Nothing changes about your ownership.
The agreement typically lasts up to 30 years, but you can end it earlier by selling your home or buying out Unison’s interest.
Because there are no required monthly payments to Unison, many homeowners use the flexibility to consolidate debt, fund renovations, invest in a business, or simply find financial breathing room.
How Equity Sharing Compares to Other Options
It helps to see where equity sharing fits alongside other common tools.
The goal isn’t to say one tool is always better than another. It’s to understand the trade-offs unique to each product – and how they align with your goals – before deciding.
Key Benefits & Considerations
Establishing Value
When you enter an Equity Sharing Agreement, everything starts with your home’s value.
There are two terms you’ll see throughout the agreement: Original Agreed Value (OAV) and Ending Agreed Value (EAV). They form the foundation of how the partnership works.
Original Agreed Value (OAV)
We begin with an independent appraisal of your home.
To account for normal appraisal uncertainty — and to avoid requiring multiple appraisals — Unison applies a 5.0% risk adjustment to the appraised value.
The formula looks like this:
Original Agreed Value (OAV) = Appraised Value – 5.0%
If your home appraises at $500,000, your OAV would be $475,000.
That number becomes the starting benchmark for measuring future change in value.
Ending Agreed Value (EAV)
When the agreement ends — whether at year 30, when you sell, or through a buyout — your home’s value at that time becomes the Ending Agreed Value (EAV).
This is determined by the final sales price or a professional appraisal.
The difference between EAV and OAV is the “change in value” that Unison shares in.
Costs and Fees
There are no monthly interest charges. However, there are standard setup costs:
How We Share Value
One of the defining features of an Equity Sharing Agreement is that Unison participates in the change in your home’s value.
The Investor Percentage
When you receive your Initial Payment, Unison is assigned an Investor Percentage. This determines the portion of the change in value Unison shares in when the agreement ends.
Unison secures that Investor Percentage through a recorded Memorandum of Agreement and Security Instrument at closing. Similarly to how a contractor can use a lien to secure payment for major home improvements, this structure ensures the shared-appreciation arrangement survives for both parties.
Importantly, Unison bears real downside risk and can lose most or all of its investment if home values decline significantly after the initial restriction period.
For primary residences, the Investor Percentage is typically calculated at 4x. In simple terms:
If you unlock 10% of your home’s value today, Unison’s Investor Percentage would typically be 40%.*
(*Secondary and investment properties may use a different multiple.)
What Happens When the Agreement Ends?
There are three possible market outcomes:
It’s important to note that during the first three years (five years for some older agreements), Unison generally shares in gains, but not in losses. If the agreement ends during this Restriction Period and the home has declined in value, the Ending Agreed Value is set at a minimum of the Original Appraised Property Value.
There is also an Equity Appreciation Limit, which caps Unison’s maximum return in the early years to balance that restriction period. Once the Restriction Period passes, Unison shares proportionally in any loss — reducing your repayment obligation and providing genuine risk-sharing on depreciation. However, if you choose to buy out of the agreement at any time, Unison does not share in losses.
And don’t forget: throughout the life of the agreement, you keep all the equity you build by paying down your mortgage. That equity is always yours, in all scenarios.
Renovation Perks
A common question we hear is a simple one: “If I improve my home, does Unison share in the value I created?”
With Unison, you keep 100% of the value added by qualifying remodeling projects.*
How the Remodeling Adjustment Works
This is handled through what’s called a Remodeling Adjustment.
If your home sells for $100,000 more than the Original Agreed Value, and an independent appraiser determines that $50,000 of that increase came from your renovation project(s), Unison does not take a share of that $50,000. We share only in the remaining “market-driven” increase.
Requirements
To qualify:
- Work must be completed by licensed contractors with required permits.
- You must document the home’s condition with photos before the project begins.
- The Remodeling Adjustment becomes available after the third anniversary of your agreement.
The adjustment is based on value added — not cost. If you spend $40,000 but the market value increase is $30,000, the adjustment is $30,000. Routine maintenance does not qualify.
The goal is simple: if you create the value, you keep the value.
*See program documentation for full eligibility details.
Your Responsibilities
An Equity Sharing Agreement can last up to 30 years. During that time, you remain the homeowner — but both parties have an interest in protecting the property.
Ongoing Responsibilities
To keep the agreement in good standing:
- The home must remain your primary residence (at least 180 days per year).
- Mortgage, property taxes, and hazard insurance must remain current.
- Hazard insurance must cover typical risks in your area.
- After closing, Unison may take aerial photography for documentation purposes (accessible in your online portal).
Maintenance
Normal wear and tear is expected.
However, if significant deferred maintenance reduces the home’s value — for example, structural damage left unaddressed — a Deferred Maintenance Adjustment may apply at settlement.
To avoid any confusion later, a home inspection is typically completed before the agreement begins.
If Life Gets Complicated
If financial hardship arises, Unison offers two unique tools:
- Orderly Sale: If foreclosure becomes a risk, Unison may assist in coordinating a sale to help preserve equity and credit.
- Protective Advance: If a critical obligation like property taxes goes unpaid, Unison may advance funds to protect the property’s value. This is the only circumstance where interest is charged.
At the end of the day, we both benefit from protecting and maximizing your home’s value. So when it comes to major changes – like remodeling, filing for bankruptcy, or transferring ownership – open communication helps us work together to ensure success.
How The Agreement Ends
Every agreement comes to an end eventually. But with Unison, you have genuine flexibility in how that happens.
1. The 30-Year Term
At the end of 30 years, the agreement must be settled. You repay the Initial Payment plus (or minus) Unison’s share of the change in value.
2. Selling Your Home
This is the most common path. When you sell, Unison receives the Initial Payment plus its Investor Percentage of the change in value, based on the sale price.
3. Special Termination (Buyout)
You may buy out Unison at any time through a Special Termination using a third-party appraisal.
In a buyout, Unison does not share in any decrease in value. You will owe at least the Initial Payment, plus applicable Risk Adjustment amounts.
4. Passing Away
If the last signatory passes away, the estate or heirs must settle the agreement, either by selling the home or paying Unison the value of its interest. It is strongly recommended to discuss the agreement with heirs in advance.
A Note on Refinancing
You may refinance or take on new home-secured debt as long as you remain under your Maximum Authorized Debt Limit. However, because an Equity Sharing Agreement is subordinate financing, some lenders — particularly those following Fannie Mae or Freddie Mac guidelines — may decline new loans.
If refinancing is already on your horizon, it may be best to complete that process before entering into an agreement.
Disclaimer
This content is sponsored by Unison Agreement Corp. and is provided for informational and educational purposes only. It does not constitute financial, legal, tax, investment, or lending advice, nor is it a solicitation or offer.
The Unison Equity Sharing Agreement is not a traditional loan. It involves no monthly payments to Unison and no interest charges. In return, Unison shares in a portion of any future change (up or down) in your home’s value when the agreement ends (upon sale, refinance, buyout, or maturity). A Memorandum of Agreement and lien interest is recorded against your property, which may affect future refinancing or transactions. An origination fee and standard third-party closing costs apply.
Availability is limited to participating states only and is subject to eligibility requirements, credit review, income verification, and underwriting approval. Terms, fees, and conditions are subject to change. Home values can rise or fall, and there is no guarantee of any specific financial outcome. Tax consequences may apply.
Unison Agreement Corp. does not provide financial, tax, or legal advice. You should carefully review the full Equity Sharing Agreement documents and consult with your own qualified financial advisor, attorney, and tax professional to determine whether this product is appropriate for your individual situation.
For complete terms, current state availability, fees, risks, and eligibility, please visit https://www.unison.com or contact a Unison representative directly.