Opinion: Home Equity Sharing Allows Homeowners to Sell a "Piece" of Their Home, but Should They?!

Daniella Cressman

Disclaimer: This information is accurate and true to the best of my knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Mortgage rates will likely decrease soon, but many homeowners are now taking measures to prepare for the anticipated financial storm of a recession.

Home equity sharing may be an option, but is it a good one?


"Home equity sharing allows an investment company to buy a slice of your home for a lump sum payment plus a share of the future change in your home equity. These agreements work very much like a company selling stock to investors, according to Thomas Sponholtz, CEO of home co-investing company Unison." —Leslie Cook

This is a risky investment, but one that has the potential to pay off in a big way in the long run.

"The investor buys an amount of stock (home equity in this case) in the hopes that the value of the stock will increase over time. When it comes time to sell, the investor recovers their original investment plus any gains in the value of the stock. If the stock loses value, the investor loses as well." —Leslie Cook

Co-investing does have its perks.

"A big part of the attraction of co-investing is that you won’t have to make monthly payments or pay interest on the amount you receive. Instead, you’re delaying the repayment until the end of the equity sharing agreement’s term or when you sell your home, whichever takes place first. Think of an equity sharing agreement as a type of balloon payment loan." —Leslie Cook

That being said, how much money you can obtain from a co-investing company will vary wildly due to a myriad of factors.

"How much money you can obtain from a co-investing company will depend on your home’s value and how much future equity you’re willing to sell. Different investing companies will have minimum and maximum amounts they are willing to invest that can range between $15,000 and $600,000 or more." —Leslie Cook

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Canadian-American author writing about local politics, personal finance, & dining in Albuquerque.

Albuquerque, NM

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