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Cost of an HEA

The Annual Cost Limit (ACL) caps the annualized return Unlock can receive, subject to state limitations. It’s typically set at 19.9%. It protects homeowners in scenarios where significant home appreciation or early settlement would otherwise result in a higher annualized return for Unlock.

If the calculated Settlement Payment would exceed the ACL, it’s reduced accordingly. The homeowner always pays the lower of the two amounts.

Unlock’s ACL is non-compounding, so the cap you see at signing is the cap that applies at settlement — but that’s not the case with every provider.

Unlock makes money in two main ways. Like other providers, Unlock charges an Origination Fee at closing — typically 4.9% of your cash from Unlock, subject to state limitations. At settlement, Unlock receives an agreed percentage of your home’s value at that time. The more your home appreciates, the greater that payment. Unlock’s upside is tied directly to yours.

The cost of a Home Equity Agreement (HEA) from Unlock depends on how much cash you receive, your home’s value, and how long you hold the agreement. There are no monthly payments during the term.

At closing, you’ll pay an Origination Fee — typically 4.9% of your cash from Unlock, subject to state limitations — along with standard third-party closing costs. These are deducted from your cash from Unlock, so there are no out-of-pocket expenses at closing.

At the end of the agreement, you make a Settlement Payment equal to an agreed percentage of your home’s value at that time.

You can see an estimate using Unlock’s cost estimator at unlock.com/what-it-costs/#calculator.

There are no hidden costs. All fees and obligations are disclosed upfront before you sign. The primary cost of an HEA is the Settlement Payment at the end — Unlock’s share of your home’s value at that time. Here are a few more to plan for:

  • At closing: Origination Fee (typically 4.9% of your cash from Unlock, subject to state limitations), valuation fees, and standard third-party closing costs. These are deducted from your cash from Unlock, so there are no out-of-pocket expenses.
  • At settlement: an Administrative Fee (typically $500) and standard closing costs. With an Owner Buyout, a second valuation may be required to determine the Ending Home Value.

Comparing an Unlock Home Equity Agreement (HEA) to a HELOC or home equity loan is straightforward once you understand how the cost is structured.

A HELOC or home equity loan charges interest over time — your cost is determined by your rate and how long you carry the balance. An Unlock HEA has two costs instead — an Origination Fee at closing of up to 4.9% and a Settlement Payment, which is a set percentage of your home’s value when you end the agreement. You see that percentage upfront, before signing anything.

How they compare depends largely on home appreciation. If your home price rises significantly, the Ending Payment could exceed what you’d pay in principal and interest with a HELOC or home equity loan. If appreciation is modest or your home stays flat, an HEA can be a comparable option — with no monthly payments for the life of the agreement. See how the numbers look for your situation using the Cost Estimator at unlock.com/what-it-costs/#calculator.

Yes. There’s a ceiling on what Unlock can receive, regardless of how much your home appreciates. Every Unlock Home Equity Agreement (HEA) includes an Annual Cost Limit (ACL) — a cap on Unlock’s annualized return, typically set at 19.9%. It’s non-compounding, which means the cap stays at the same percentage whether you settle in the early years or at year 10.

During My HEA

Yes. Once you close on your Home Equity Agreement (HEA), the cash is yours to use however you choose, including home renovations.

If your improvements increase your home’s value by $10,000 or more at the time of settlement, you may be eligible for an Improvement Adjustment. An independent appraisal at the end of the agreement will determine the added value.

If applicable, the Ending Home Value used to calculate Unlock’s share would be adjusted down, so you keep the value those improvements added. It is not tied to how much you spent on the improvements, but rather their assessed value at the time of settlement.

Unlock does not restrict how you use your home after funding, but you must keep it in good condition and stay current on property taxes, insurance, and any mortgage payments. You cannot take on certain types of new debt — like reverse mortgages, shared appreciation loans, or loans with negative amortization — and others still require coordination and approval from Unlock. Converting a primary residence to an investment property triggers a pricing adjustment. Beyond that, the home is yours to live in and use as you choose.

No, Unlock does not conduct routine inspections during the term of your Home Equity Agreement (HEA). The home valuation happens at the beginning of the process and is completed by an independent third-party. After that, there are no scheduled inspections unless you request a Partial Buyout or end your agreement, at which point another home valuation could be required.

It’s possible to refinance your mortgage while you have a Home Equity Agreement (HEA), but it depends on the type of refinance and whether Unlock agrees to subordinate its lien.

Unlock may subordinate to a new mortgage depending on the refinance type and your home’s value. Unlock will not subordinate to reverse mortgages, shared appreciation loans, or loans with negative amortization. Cash-out refinances require full settlement of the HEA before or during the new loan closing.

Even if Unlock agrees to subordinate, some lenders may not approve mortgages on properties with an active HEA — in those cases, settling the HEA may be required.

If you need to change something on your property’s title during your Home Equity Agreement (HEA), you’ll need to notify Unlock in advance. Title changes typically require Unlock’s review and approval, since the agreement is tied to the property’s ownership structure. Depending on what needs to change, you may need to provide updated documentation or other ownership records.

Improvements you make during your HEA can reduce the Ending Home Value used to calculate Unlock’s share at settlement.

If the improvements add at least $10,000 in value to your home — verified by an independent appraiser at the time of settlement — an Improvement Adjustment applies. You keep that value you added.

Note that it’s based on the added value at the time of settlement, which may not be the same as the initial project cost.

The Settlement Payment is based on the agreed percentage of your home’s value when the agreement ends — not the original amount you received. That percentage doesn’t change. But if your home is worth less when you settle, Unlock receives a percentage of that lower value.

One exception: if your home’s value declines materially due to inadequate maintenance, a Maintenance Adjustment may apply. This adjusts the Ending Home Value upward to reflect the impact of deferred or improper upkeep, so that Unlock does not bear the cost of conditions within the homeowner’s control.

No — the requirements are the same as they are at qualification. You must maintain homeowners insurance that covers the full replacement cost of the property, and Unlock must be listed as an additional interested party. If your insurance lapses or coverage falls below the required level, it could trigger a default under the agreement.

You’ll also need to continue paying property taxes, your mortgage if you have one, HOA dues, and any other required housing obligations as usual. If your policy changes at any point during the term, let your Home Equity Officer know.

Unlock’s Home Equity Agreement (HEA) allows you to rent out your home during the agreement term, but not all HEA or HEI providers permit this. You’ll need to notify Unlock in advance and meet certain requirements. Here are a couple main ones:

  • The property must remain primarily residential, and any lease must cover the entire property — no room rentals or short-term arrangements like Airbnb.
  • The lease needs to be between you and the tenant directly, in your name as the individual homeowner, and fully executed by all parties.

If you’re planning to convert your primary residence into a rental, contact Unlock to discuss the specifics and ensure you’re meeting all the terms of your agreement.

Taking out a new loan or HELOC after entering an Unlock HEA is possible, but depends on a few factors. The Total Home Finance Limit in your agreement caps the total financing secured by your home — typically 75–80% for primary residences. As long as a new HELOC or home equity loan keeps your combined financing within that limit, Unlock may agree to subordinate its lien position.

Unlock will not subordinate to reverse mortgages, shared appreciation loans, or loans with negative amortization. Cash-out refinances require full settlement of the HEA before moving forward. Some lenders may decline to lend behind an active HEA even if Unlock permits it — raise this early in the process.

Contact your Home Equity Officer before pursuing any new financing.

Once you close and receive your funds, your agreement enters its term. You continue to live in your home, pay your property taxes, maintain your homeowner’s insurance, and keep up with general maintenance — the same as before.

There are no monthly payments to Unlock during the term. Unlock sends regular statements with your estimated home value and Settlement Payment at that time. If you plan to refinance, add someone to title, or convert the property to a rental, notify Unlock before making any changes.

Maintaining adequate homeowner’s insurance throughout your agreement is a condition of your Unlock HEA. Your policy must cover the full replacement cost of the home, name Unlock as an additional interested party, and remain active without lapse.

If your policy lapses or falls below the required coverage, Unlock will purchase insurance for the property at your expense — but it typically costs more than standard coverage and doesn’t protect your personal belongings. Keeping your own policy active is always the better option.

If your policy changes at any point during the term, let your Home Equity Officer know.

If your home is significantly damaged during the term of your agreement, your homeowner’s insurance policy is the primary protection for you — and it covers Unlock’s interest in the property as well.

  • Major damage but repairable: insurance proceeds are used to repair or rebuild the home, and your agreement remains in place.
  • Total loss: if the property cannot be rebuilt, the agreement will need to be settled based on the remaining property value at that time.

If your home suffers serious damage, reach out to your Home Equity Officer as soon as you’re able. Additional resources: https://www.unlock.com/disaster-resources/

Divorce and separation are relevant to your Unlock HEA and how it’s processed, but it’s different depending on the stage of your agreement.

  • At origination: everyone listed on the property title must sign the agreement. In many states, a spouse not on the title may also need to sign certain documents due to homestead or marital property laws.
  • During your agreement: until a divorce is finalized and property interests are legally resolved, your spouse generally retains rights to the property. If title changes during the term, notify Unlock.
  • Using an HEA for a divorce buyout: an Unlock HEA can be a practical way to access cash and buy out a spouse’s equity share without selling the home or taking on monthly payments.

Your divorce attorney and your Home Equity Officer are the right people to work through the specifics together.

During the term of the Unlock Agreement it is your responsibility to maintain your home in good condition, subject to normal wear-and-tear.  Unlock makes its investment under the assumption that you will honor this obligation.  If you do not, when the Unlock Agreement ends your home’s value will most likely be less than it would have been if it had been properly maintained and that would negatively affect both of us.  To address that, the Unlock Agreement has a provision called the Maintenance Adjustment.

For example, if you decide to sell your home 10 years after entering an Unlock Agreement and the Ending Home Value is $40,000 less than it should be due to extensive termite damage, we would have the right to make a Maintenance Adjustment.  For purposes of calculating the Unlock Share, the Ending Home Value would be adjusted upward by $40,000 so we would not share in the loss.

The amount of the Maintenance Adjustment is determined by independent third-party appraisals, inspections, and repair estimates.  Typically, no Maintenance Adjustment will apply unless the aggregate cost of the required repairs is at least $10,000.

See the Unlock Product Guide for more details.

Mortgage payments, property taxes, property insurance, and other housing obligations must remain current during the term of your Home Equity Agreement (HEA). Falling behind on any of these is one of several events that can trigger a default under the agreement. Other default events include taking on unapproved financing in violation of the HEA terms, or declaring bankruptcy.

Defaults are not typical, but life happens, so defaults sometimes happen too. Unlock would always prefer to work through a problem together. However, if a default occurs and isn’t resolved, it can result in early termination of the agreement.

For specifics, contact your Home Equity Officer.

Ending My HEA

A Partial Buyout lets you reduce Unlock’s percentage incrementally — in one or more transactions — before the end of your term. It doesn’t change the end date or the other terms of your Home Equity Agreement (HEA). You can request a Partial Buyout at any point during the term, subject to Unlock’s approval.

After any Partial Buyout, you must retain at least 25% of Unlock’s original percentage. There’s no prepayment penalty, but each Partial Buyout requires a current valuation and has associated costs.

The term runs up to 10 years. You can end your Home Equity Agreement (HEA) at any point by selling your home or buying out Unlock’s share. If you reach the full 10-year term without taking either of those actions, the agreement expires and you’ll need to make the Settlement Payment equal to Unlock’s percentage of your home’s value at that time.

When you’re ready to sell, you settle your Home Equity Agreement (HEA) as part of the closing. Here’s how the process works:

  • Notify Unlock. Contact Unlock as soon as you decide to sell. The earlier you reach out, the smoother the coordination.
  • Determine Ending Home Value. This is typically the home’s sale price to a third-party buyer through the open market. It does not include non-cash considerations such as seller concessions, or deductions for closing costs, commissions, or other fees.
  • Account for any home improvements. If you made material improvements during the term that increase your home’s value by $10,000 or more at the time of settlement, an Improvement Adjustment may apply. This reduces the Ending Home Value used to calculate Unlock’s share, so you keep the value those improvements added. But note that the increase in value over time may not equal the initial cost of the project.
  • Account for property condition. If the property was not maintained in good condition and its value was negatively impacted by $10,000 or more, a Maintenance Adjustment may apply. This adjusts the Ending Home Value upward to reflect value lost due to deferred or inadequate upkeep. The amount is determined by independent appraisals, inspections, and repair estimates at the end of the agreement.
  • Calculate the Settlement Payment. Unlock’s share is calculated by multiplying the Ending Home Value by the Unlock Percentage agreed to at signing, subject to the Annual Cost Limit (ACL). You keep the remaining proceeds after paying off any remaining mortgage balance and closing costs.

You can view an estimated Settlement Payment at any time through your account dashboard or by contacting Unlock.

Alternate home financing options, like a HELOC, are a common way to settle a Home Equity Agreement (HEA). Whether it makes sense depends on your situation. A HELOC requires monthly payments and typically has variable interest rates. If you can manage the monthly obligation and current rates are competitive, it can be a preferred way to end an agreement without selling your home. The trade-off is worth weighing carefully.

For guidance specific to your circumstances, reach out to Unlock’s Homeowner Servicing team.

Settlement works similarly across home equity agreements (HEAs) and home equity investments (HEIs) — typically when you sell your home or buy out the provider’s share.

With Unlock’s HEA, you have up to 10 years to settle, most commonly through the sale of your home or buying out Unlock’s share. There’s no prepayment penalty if you choose to end the agreement early. If ownership of your home changes due to your passing, your agreement may need to be settled. In some cases, your heirs may be able to assume the agreement.

When you sell your home, your Home Equity Agreement (HEA) ends. You’ll make the Settlement Payment to Unlock, equal to the Unlock Percentage of your home’s sale price. The rest of the proceeds are yours, less selling costs and any outstanding mortgage loan balances.

You always have the option to buy out Unlock’s share without selling. This is called an Owner Buyout — it ends the agreement while you keep your home. The buyout requires a new appraisal to determine your home’s value at that time, and your Settlement Payment reflects Unlock’s percentage of that value.

If you’re not ready to settle the full amount, a Partial Buyout lets you reduce Unlock’s percentage incrementally before the term ends, subject to Unlock’s approval. For guidance specific to your situation and timeline, contact your Home Equity Officer or Unlock Support at (800) 560-3450 or [email protected].

Yes. You can end your Home Equity Agreement (HEA) at any time before the end of year term by selling your home or buying out Unlock’s share. You can also reduce Unlock’s percentage incrementally through an approved Partial Buyout, without ending the agreement entirely. There’s no prepayment penalty. The fixed term is the maximum length, not a requirement.

Getting Started

Properties in flood zones can qualify for a Home Equity Agreement (HEA) from Unlock as long as you carry the required flood insurance. Your policy must meet FEMA standards and remain active for the life of the agreement.

Beyond that, the home still needs to meet Unlock’s standard eligibility requirements: single-family home, townhome, or condo; at least 30% equity; minimum $175,000 value; and the property must be in good condition.

Yes. You can qualify for a Home Equity Agreement (HEA) without a mortgage, as long as you meet the other eligibility requirements: a minimum home value of $175,000 and a credit score of 500 or above for a primary residence single-family home or townhome, or 550 or above for condos, investment properties, and second homes.

You need at least 30% equity in your home to qualify for a Home Equity Agreement (HEA) from Unlock. Your equity is the difference between your home’s current value and what you still owe on any mortgages or liens against it.

Your property must have a condition rating of C4 or better to qualify for a Home Equity Agreement (HEA). A C4 rating means the property is in average or better condition, with no significant deferred maintenance or structural issues that would affect its value or safety.

That rating comes from the appraisal and reflects the overall state of the home, including the foundation, roof, major systems, and general maintenance.

Manufactured homes built to HUD code do not qualify for a Home Equity Agreement (HEA) from Unlock. However, modular homes built to local city building code — rather than HUD manufactured home code — may be acceptable if the appraiser can provide modular home comparables.

Yes. Investment properties and second homes are eligible for a Home Equity Agreement (HEA) from Unlock with a minimum credit score of 550. Qualification criteria and pricing reflect the additional risk of non-primary residences.

If you convert a primary or second home to an investment property during the term of your agreement, pricing adjusts accordingly.

When ownership of your home transfers to your heirs, they inherit the property subject to the existing Home Equity Agreement (HEA).

Your heirs have options: sell the home and settle with Unlock from the proceeds, complete an Owner Buyout to keep the property or, in some cases, continue the agreement — though it will need to be settled by the end of the term. It’s worth talking plans through with your heirs and making sure they’re aware of your HEA.

You can start your application online at unlock.com. The process begins with pre-qualification, which takes as little as two minutes and has no impact on your credit.

After that, Unlock conducts a property valuation and issues an Investment Estimate with preliminary terms. Once you submit the required documentation and complete the title review, you’ll receive an Investment Closing Disclosure with your final confirmed terms.

The full process typically takes 30–60 days from application to closing.

Single-family homes, townhomes, and condos qualify for an Unlock Home Equity Agreement (HEA), along with 2–4 unit properties, investment properties, and second homes. Your property must be located 10 acres or less and in an eligible state, and not be a mobile or manufactured home.

Eligible property types also vary by credit score. With a score of 550 or above, all the types listed are available. With a score between 500 and 549, only single-family homes and townhomes used as primary residences qualify.

Properties held in revocable living trusts may be eligible for an Unlock Home Equity Agreement (HEA) if at least one trustor lives in the home as their primary residence, applies for the HEA, and serves as a trustee with authority to encumber trust assets. All trustees and trustors must sign the agreement both in their official capacities and as individuals. You’ll need to provide either the complete trust agreement or a certification of trust during the application process.

Yes. Having a mortgage doesn’t disqualify you from an Unlock Home Equity Agreement (HEA). You need at least 30% equity in your home to qualify, which means the difference between your home’s current value and what you still owe must be 30% or more of that value.

One requirement: if you’re the main applicant, you must be listed on both the property’s title and the mortgage. Co-owners only need to be on the title, but the main applicant needs to be on both.

To verify ownership, insurance, and identity, you’ll typically need:

  • Homeowner’s Insurance Declaration (confirms active coverage at full replacement cost)
  • Government-Issued ID (verifies your identity)
  • Proof of Ownership (needed for recent transfers, homes in trust, or to clarify title).

For Unlock’s HEA, you must also be listed on any active mortgage tied to the property. This applies in all cases, including when a co-borrower or spouse has passed away.

During the application, you’ll complete the Application & Consents, which authorize a title pull, a soft credit review, and contact with service providers.

Credit requirements vary by provider. With Unlock’s Home Equity Agreement (HEA), you need a credit score of 500 or above for a single-family home or townhome used as your primary residence. For condos, 2–4 unit properties, investment properties, and second homes, the minimum is 550. Qualification is based primarily on your home’s equity and value rather than income or debt-to-income ratio, so the criteria work differently than a traditional loan.

Your home’s equity and your financial profile determine how much you can access. With Unlock’s Home Equity Agreement (HEA), you can receive between $15,000 and $500,000 in cash, depending on your home’s current value, existing debt, credit score, and property type.

In exchange, you’ll share a percentage of your home’s value with Unlock at settlement. This percentage is capped at 49.99%, though the specific percentage depends on your situation and agreement terms.

No. Unlock’s Home Equity Agreement (HEA) does not require income verification or proof of income to qualify. Qualification is based primarily on your home’s equity and value.

Credit scores starting at 500 qualify for a Home Equity Agreement (HEA) from Unlock when the property is a single-family home or townhome used as a primary residence. For condos, 2–4 unit properties, investment properties, and second homes, the minimum is 550.

You can get a free estimate right on Unlock’s homepage – simply enter your address and you’ll get a free estimate of your home’s current value in seconds. Keep in mind that the online estimate is a starting point. Your home’s actual value is determined by an independent valuation during the application process.

Requirements for an Unlock Home Equity Agreement (HEA) are primarily built around a different set of criteria than a conventional loan — your home’s equity and value, not your income or credit score.

Unlock accepts credit scores starting at 500 for single-family homes and townhomes used as primary residences, and 550 and above for condos, 2–4 unit properties, investment properties, and second homes.

Applying won’t affect your credit score either. Unlock uses a soft credit pull at every stage — including full application – so there’s no hard credit pull, ever.

A Home Equity Agreement (HEA) from Unlock gives you cash based on your home’s current value, with no monthly payments during the term.

Having no monthly payments — and, instead, one payment at the end — is a main benefit. Here are some others:

  • You can use the funds for whatever you need.
  • Qualification is based primarily on your home’s equity and value rather than income or credit thresholds.
  • You have up to 10 years to settle the agreement, most commonly through the sale of your home or buying out Unlock’s share. There’s no prepayment penalty if you choose to end the agreement early.
  • Unlock places a lien on your property to secure the agreement, but you continue to own and live in your home throughout the term, with no changes to your mortgage.

    Unlock’s Home Equity Agreement (HEA) lets you turn your home’s equity into cash today.

    Here’s how it works: You receive cash upfront and, in exchange, Unlock receives a share of your home’s value when the agreement ends. Unlock places a lien on the property to secure the agreement. During your term, you continue to own and live in your home. You make no monthly payments and there’s no prepayment penalty if you choose to end the agreement early.

    You have two main ways to end your HEA – either use proceeds from the sale of your home, or use savings or another form of financing to buy out Unlock’s share. When you’re ready to end the agreement or you reach the end of the term, you make a single Settlement Payment equal to Unlock’s share of your home’s value at that time.

    Once you create an account, we’ll provide an estimate of the maximum cash available.

    In general, the maximum amount of cash available from Unlock is $500,000.  The specific amount we can offer you depends on four things:

    • Your home’s current value. In general, the more your home is worth, the more cash is available.
    • Pre-existing housing debt. This includes all mortgages and credit lines secured by your home.  In general, the less housing debt you have, the more cash is available.
    • Your credit history. A good credit track record may qualify for more cash.
    • The use of the property. We can typically offer more cash when the home is your primary residence.

    Note that these factors can affect each other.  For instance, an expensive home with a lot of debt may qualify for less cash than a less expensive home with no debt.

    See the Unlock Product Guide for more details.

    You remain the owner of your home throughout the term of your home equity agreement (HEA). You stay on title, make decisions about the property, and continue to live in and use your home as you normally would.

    What Unlock receives is a contractual right to a share of your home’s value at the end of the agreement — up to 10 years later. Unlock secures that right with a lien on the property, which is recorded on title and visible during title searches, but does not affect your day-to-day ownership.

    Qualification is based primarily on your home’s equity and value.

    To qualify, you’ll need:

    • At least 30% equity
    • Minimum home value of $175,000
    • Credit score of 500 or above for single-family homes and townhomes used as a primary residence. For condos, 2–4 unit properties, investment properties, and second homes, the minimum credit score is 550.

    No.  But you must pay your mortgage, taxes, HOA dues and other housing obligations just as you normally do.

    Yes, we do!  Pricing is typically higher for a rental property versus a primary residence.

    Alabama, Arizona, California, Florida, Hawaii, Idaho, Indiana, Kentucky, Michigan, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Wisconsin, and Wyoming

    You can use the funds from your home equity agreement (HEA) for whatever you need.

    In some cases, Unlock may require you to pay off certain debts or property liens when your agreement is originated, but beyond that, there are no restrictions on how you use the net cash you receive.

    Home Equity 101

    No. A Home Equity Agreement (HEA) has no interest rate and no monthly payments. The cost of the agreement is reflected in the Pricing Factor — the multiplier that determines Unlock’s percentage of your home’s value at settlement — rather than an interest rate applied to a loan balance.

    A reverse mortgage and a home equity agreement (HEA) are both ways to access your home’s equity without monthly payments, but the structure is different. A reverse mortgage is available only to homeowners 62 and older. Interest accrues on the balance over time and the loan is repaid when you sell, no longer occupy the home as your primary residence, or pass away.

    With Unlock’s HEA, there’s no age requirement. You receive cash in exchange for a share of your home’s value at the end of the agreement, which runs up to 10 years. Unlock places a lien on the property to secure the agreement but will not subordinate to a reverse mortgage, so you cannot hold both concurrently.

    No. A home equity agreement (HEA) and a HELOC both let you access your home’s equity, but the structure is different. A HELOC charges monthly interest on what you draw. An HEA has no monthly payments — instead you make a single Settlement Payment when the agreement ends, based on a percentage of your home’s value at that time.

    Yes. Your home equity is part of your net worth. Net worth is calculated by subtracting what you owe from what you own, and your home’s value minus any mortgage or liens counts toward the asset side of that equation.

    Home equity is an asset. It represents the portion of your home’s value that you own outright — or the difference between what your home is worth and what you still owe on any mortgages or liens against it. That equity sits on your balance sheet as part of your net worth, but it isn’t liquid until you convert it.

    A home equity agreement (HEA) or home equity investment (HEI) is one way to access that value without monthly payments — just one payment at the end. With Unlock’s HEA, you receive cash upfront in exchange for a share of your home’s value at the end of the agreement.

    A home equity agreement (HEA) or home equity investment (HEI) is similar to a HELOC or home equity loan in that you access your equity as cash, but the structure is different. A HELOC or home equity loan requires monthly payments on the balance. An HEA or HEI has no monthly payments — instead you make a Settlement Payment based on your home’s value at the end of the agreement.

    With Unlock’s HEA, you have up to 10 years to settle, most commonly through the sale of your home or buying out Unlock’s share – but there’s no prepayment penalty if you choose to end the agreement early. Qualification is built primarily around your home’s equity and value rather than income or credit thresholds (though not all homeowners will qualify). Whether one fits your situation better depends on your financial goals and circumstances.

    No. A home equity agreement (HEA) or home equity investment (HEI) is one way to access your home’s equity without the monthly payments of a traditional loan. With Unlock’s HEA, you receive cash in exchange for a share of your home’s value at the end of the agreement. You have up to 10 years to settle, most commonly through the sale of your home or buying out Unlock’s share — but there’s no prepayment penalty if you choose to end the agreement early.

    A home equity agreement (HEA) or home equity investment (HEI) provides cash with no monthly payments during the term. With Unlock’s HEA, you have up to 10 years to settle, most commonly through the sale of your home or buying out Unlock’s share. But there’s no prepayment penalty if you choose to end the agreement early. The Settlement Payment is based on Unlock’s percentage of your home’s value at that time.

    A HELOC provides a revolving line of credit with variable monthly payments. A home equity loan provides cash upfront with fixed monthly payments. Both typically require steady income and strong credit.

    A cash-out refinance replaces your existing mortgage with a larger one, giving you the difference in cash.

    Which option fits depends on whether you want to avoid monthly payments, preserve borrowing capacity, or manage long-term cost. Not all homeowners will qualify for each option.

    A Home Equity Investment (HEI) and Home Equity Agreement (HEA) describe the same general product structure — cash upfront in exchange for a share of your home’s value at the end of the agreement, with no monthly payments during the term. But the terminology and specific terms vary by company. You may also see the category referred to as Shared Equity Products (SEPs). Unlock uses Home Equity Agreement to describe its product.

    A HELOC isn’t the only way to access your home’s equity. A Home Equity Agreement (HEA) from Unlock works similarly — you receive cash based on your home’s current value, with a lien placed on the property — but the structure is different. There are no monthly payments, just one Settlement Payment at the end of the agreement based on your home’s value at that time. You end the agreement by selling your home or buying out Unlock’s share before the end of your term

    Qualification for an HEA is built around your home’s equity and value rather than income or traditional credit thresholds. You’ll need at least 30% equity, a minimum home value of $175,000, and a credit score of 500 or above for single-family homes and townhomes used as a primary residence.

    It depends on how you access it. A HELOC, home equity loan, or cash-out refinance all involve a hard credit inquiry, which can temporarily lower your score, and the resulting balance is reported to credit bureaus, which affects your debt-to-income ratio.

    A Home Equity Agreement (HEA) from Unlock works differently. The application involves only a soft credit inquiry, which does not affect your credit score. The agreement doesn’t appear on your credit report and, if you’re using the cash from Unlock to pay down debt, it may actually improve your credit utilization over time.

    Unlock does place a lien on your property, which is visible on title searches and may affect your ability to obtain certain loans during the term.

    Yes — home equity is a common way to fund a down payment on a second property. A HELOC or home equity loan are options, but both require monthly payments that stack on top of your new mortgage, and both factor into your debt-to-income ratio when you apply.

    A Home Equity Agreement (HEA) from Unlock is a different approach. You get cash upfront with no monthly payments — instead, you make one Settlement Payment at the end.

    Qualification is based primarily on your home’s equity and value rather than income, and the agreement doesn’t appear on your credit report or affect your debt-to-income ratio, which can matter when applying for a mortgage on a second property.

    A Home Equity Agreement (HEA) lets you access your equity without refinancing. You receive cash upfront in exchange for a share of your home’s value at the end of the agreement, with no need to replace your existing mortgage.

    It’s one of several ways to tap your home equity — one without the monthly payments of a HELOC or home equity loan or the age requirements of a reverse mortgage. The agreement runs up to 10 years and ends when you sell your home or buy out Unlock’s share.

    A home equity agreement (HEA), also referred to as a home equity investment (HEI) or shared equity product (SEP), is one alternative to a second mortgage. It provides cash upfront based on your home’s equity. Instead of making monthly payments, you share a percentage of your home’s value at the end of the agreement — whether you decide to sell or buy out Unlock’s share early or use the full term.

    The HEA places a lien on your property like a second mortgage does, but the structure is different: no monthly payments, and settlement is based on your home’s value at that time, rather than a fixed loan amount plus interest.

    Whether sharing equity in your home makes sense depends on your financial situation and goals. A Home Equity Agreement (HEA) from Unlock gives you access to cash without monthly payments, which can be useful if you need funds now but want to preserve your monthly cash flow. It doesn’t appear on credit reports or affect your debt-to-income ratio.

    Your HEA has a fixed term of 10 years, but you can decide to end it early by selling your home or buying out Unlock’s share. The trade-off is that you’re sharing future appreciation with Unlock. If your home increases significantly in value, the Settlement Payment changes accordingly — same if your home value decreases. You agree to Unlock’s percentage up front and the Settlement Payment is always subject to an Annual Cost Limit.

    A Home Equity Agreement (HEA) from Unlock has no monthly payments, which means it won’t strain a fixed budget the way a traditional loan would. But there are important things to consider.

    The Settlement Payment is based on your home’s value at that time — not today’s value — and it’s due when you sell your home, choose to buy out the agreement, or reach the 10-year term.

    If you plan to stay in the home long-term without selling, you’ll want a clear plan for how to settle within the term. Unlock places a lien on your property, which many lenders won’t lend behind and can limit access to other financing during the term.

    Unlock’s Home Equity Agreement (HEA) works well for many homeowners — but it isn’t the right fit for every situation, and you should know that upfront. You may want to consider other options if:

    • You expect your home to appreciate significantly and want to keep all of that upside. An HEA means sharing a portion of that growth with Unlock at settlement.
    • You qualify for a HELOC or home equity loan at a rate you’re comfortable with and can manage the monthly payments.
    • You plan to sell your home within the near term. The Origination Fee makes very short terms more expensive relative to the cash you’d receive.

    Not sure which path fits your situation? Our team is available to talk it through — no pressure, no obligation.

    Yes — and you can verify it. Unlock Technologies, Inc. is registered with the Nationwide Multistate Licensing System (NMLS #2657081). Look us up anytime at nmlsconsumeraccess.org.

    Backed by an executive team with 70+ combined years of HEA experience — the most experienced leadership team in the industry — Unlock has helped more than 20,000 homeowners access their home equity through a Home Equity Agreement. We’re A+ rated by the Better Business Bureau and have a 4.7 out of 5 rating on Trustpilot, where you can read reviews directly from homeowners.

    If you’d like to speak with someone before taking the next step, our team is available at 800-560-3450, Monday through Friday, 9 AM to 8 PM ET.

    Home equity is the portion of your home’s value that you own outright. If your home is worth $400,000 and you owe $250,000 on your mortgage, you have $150,000 in equity — or about 37%. To qualify for a Home Equity Agreement, you’ll need at least 30% equity in your home.

    Not sure where you stand? We can give you an estimate in minutes at www.unlock.com.

    Yes. An Unlock Home Equity Agreement (HEA) lets you access your home’s equity without refinancing your existing mortgage. You receive cash up front in exchange for sharing a percentage of your home’s value at the end of the agreement.

    There are no monthly payments with an HEA and your current mortgage stays exactly as it is — same rate, same payment, same lender. You can settle the agreement at any point during by selling or buying out Unlock’s share.

    The most cost-effective way to access your home’s equity depends on your financial situation and what you’re looking for.

    A Home Equity Agreement (HEA) from Unlock and traditional products like HELOCs or home equity loans have different cost structures — not simply higher or lower ones.

    • With a HELOC or home equity loan, you pay interest over time through monthly payments. Total cost depends on how long you borrow and current interest rates.
    • With an Unlock HEA, there are no monthly payments. You receive cash upfront and make a single Settlement Payment at the end of the agreement, based on your home’s value at that time.

    The two products carry cost in different ways: one through ongoing interest, one through a share of your home’s value at settlement. Which costs more depends on current interest rates and terms, and what your home does over the length of the agreement. You can explore what an HEA might cost using Unlock’s Cost Estimator at unlock.com/what-it-costs/#calculator.

    A Home Equity Agreement (HEA) from Unlock gives you cash up front based on your home’s current value, and you settle based on a share of your home’s value at the end of the agreement – up to 10 years later. There are no monthly payments during the term.

    With a home equity loan, you also receive a lump sum upfront. And with both products, a lien is placed on your property. The key difference is how it’s paid back: a home equity loan requires fixed monthly payments plus interest from day one. An HEA has no monthly payments; you settle at the end.

    The qualification criteria are also different. An HEA is built primarily around your home’s equity rather than income or traditional credit thresholds, so the two products draw on different parts of your financial picture.

    A home equity agreement (HEA) is a financing option a wide range of homeowners can use to tap their home equity. It allows them to access cash up front without taking on monthly debt payments or selling their property.

    The Process

    After you sign with the notary, there is a three-business-day right-to-cancel period. Once that period ends, the cash from Unlock is typically sent to escrow on the fourth business day. Homeowners can choose to receive their cash via wire transfer or a physical check, and the delivery timeline varies based on the method chosen.

    A home appraisal estimates your home’s market value based on its condition, features, and neighborhood — an important input in calculating your equity and determining your HEA terms. A few things worth doing before the appraiser arrives: complete any easy repairs, make sure major systems are accessible and working, and tidy up the interior and exterior. Being present during the appraisal gives you the opportunity to answer questions and point out improvements or features the appraiser might otherwise miss.

    For more tips, visit unlock.com/blog/homeownership/10-insider-tips-on-how-to-prepare-for-a-home-appraisal/

    To verify ownership, insurance, and identity, you’ll typically need:

    • Homeowner’s Insurance Declaration (confirms active coverage at full replacement cost)
    • Government-Issued ID (verifies your identity)
    • Proof of Ownership (needed for recent transfers, homes in trust, or to clarify title).

    For Unlock’s HEA, you must also be listed on any active mortgage tied to the property. This applies in all cases, including when a co-borrower or spouse has passed away.

    During the application, you’ll complete the Application & Consents, which authorize a title pull, a soft credit review, and contact with service providers.

    Before closing, a title review confirms ownership of the property and identifies any existing liens or title issues.

    • Existing mortgages: the review verifies your current mortgage balance and confirms there’s enough available equity.
    • Other liens: tax liens, mechanic’s liens, HOA liens, or judgment liens may need to be resolved before closing — in some cases your Cash from Unlock can be used to clear them.
    • Title defects: issues with prior ownership records may need to be resolved with a real estate attorney.

    If the title review uncovers something, your Home Equity Officer will explain the options. Most issues can be resolved with a little extra time.

    Not qualifying today doesn’t mean you won’t qualify for an HEA in the future.

    The most common reasons homeowners don’t qualify include:

    • Credit score below 500
    • Home equity below 30%
    • Home value below $175,000
    • Recent bankruptcy or foreclosure within the past five years
    • Property type or condition outside current guidelines
    • Location outside Unlock’s current state footprint

    But some circumstances change. Credit scores improve, equity builds, required waiting periods pass. There’s no restriction on reapplying – and no impact to your credit score for doing so.

    A few factors shape the cash available to you, including:

    • Your existing mortgage balance — your available equity is the difference between your home’s value and what you still owe. The higher your mortgage balance, the less equity is available.
    • Your home’s appraised value — Starting Home Value is based on an independent valuation, not public tools like Zillow.
    • Your loan-to-value ratio — a lower existing LTV means more Cash from Unlock available.
    • Your property type — investment properties and second homes typically qualify for less than primary residences.

    If the number seems lower than you expected, your Home Equity Officer can walk you through exactly what’s driving it.

    When you apply for a Home Equity Agreement (HEA) with Unlock, your home’s value is determined by an independent valuation that assesses your home’s fair market value. That sets the Starting Home Value for your HEA.

    The valuation relies on recent comparable sales, market data, and your property’s current condition and characteristics. Homeowners are responsible for appraisal costs, which are deducted from your Cash from Unlock at closing.

    Unlock never applies a discount to the home value determined by our valuation process.

    Online home valuation is a data-driven estimate pulled from multiple sources, including recent comparable sales, market data, and your property’s characteristics. It also requires photos to confirm your home’s condition and eligibility, and that it doesn’t have any major safety, structural, or significant repair issues.

    It’s the same method used across the lending and real estate industry, and it allows us to move faster and at less cost to you – which some homeowners prefer. Not every home will qualify for an online valuation, and appraisals are always available to homeowners who prefer an in-person valuation.

    Unlock uses a soft credit inquiry at every stage — including full application. Soft inquiries are only visible to you and do not affect your credit score.

    Unlock does not perform hard inquiries at any stage, though many providers do.

    Your Home Equity Agreement (HEA) does not appear on credit reports, and Unlock does not report balances or payment history to credit bureaus because there are no monthly payments.

    The full process to get an Unlock HEA typically takes 30–60 days, though timelines can vary depending on appraisal scheduling, title review findings, and how quickly required documentation is provided.

    Complex situations may require additional time. If you anticipate any added complexity — such as title issues or a property in trust — let your Home Equity Officer know early in the process.

    No, Unlock is not added to the title of your property.

    Unlock places a lien on the property, which is recorded on the title and will appear during title searches. The lien position is typically junior if you have an existing mortgage, but if there’s no pre-existing mortgage, Unlock will be in first lien position.

    It depends on your property. Some homes are eligible for an online valuation, which uses recent comparable sales, market data, and your property’s characteristics to determine value — no in-person visit required.

    For properties that require an in-person valuation, an independent appraiser will need to access the interior and exterior of your home. The appraiser evaluates both condition and value in a single visit, so you’ll only need to schedule one appointment. An in-person appraisal is always an option regardless of eligibility.

    Your Home Equity Officer can confirm which process applies to your property during the application.

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