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Bottom Line: Unison is a home equity investment (HEI) — its “Equity Sharing Agreement” gives you cash today for a share of your home’s future value, with no monthly payments and no interest. On product alone it’s among the strongest in the category (the longest 30-year term, the widest state availability, and genuine downside protection). But it earns a more cautious 7.6/10 because Unison faces a 2025 federal appeals-court ruling and several active class-action lawsuits challenging how its product works — a material risk we explain in full below.
What Is Unison? (Quick Answer)
Unison (founded 2004, San Francisco) is one of the oldest and largest Home Equity Investment (HEI) providers. Its flagship “Equity Sharing Agreement” gives you a lump sum of cash today — up to about 15% of your home’s value ($30,000 to $500,000) — in exchange for a share of your home’s future change in value. There are no monthly payments and no interest or APR. You settle once, within up to 30 years, by selling, refinancing, or buying Unison out, repaying the original amount plus or minus Unison’s share. Unison requires a 620 credit score, charges a 3.9% transaction fee, and operates in roughly 29–30 states plus Washington, D.C. Importantly, as of 2026 Unison faces several class-action lawsuits and a federal appeals ruling finding its product functions as a reverse mortgage under Washington law — a risk homeowners should weigh carefully.
How a Home Equity Investment Differs From a HELOC or Home Equity Loan
Unison’s Equity Sharing Agreement is fundamentally different from the loans and lines of credit it sits beside:
- A home equity loan gives you a lump sum you repay with fixed monthly payments and interest.
- A HELOC is a revolving line of credit with variable-rate monthly payments.
- A Unison HEI gives you a lump sum with no monthly payment and no interest. Your cost is settled later as a share of your home’s value — typically about 4× the percentage Unison invested — not an interest rate. In a strongly rising market that share can cost far more than a loan would have.
If you want predictable payments and the lowest long-term cost, a HELOC or home equity loan is usually the better tool. See our guide on HELOC vs. home equity loan. (Note: Unison also sells a separate Equity Sharing Home Loan — an actual interest-bearing loan — which is a different product from the Equity Sharing Agreement reviewed here.)
How Unison Works
- Get an estimate. You start online with a soft credit check that doesn’t affect your score. Unison reviews your home, equity, and eligibility.
- Appraisal and offer. An appraisal sets your home’s starting value. Unison applies a “Risk Adjustment” (about 5%) that discounts that starting value, then offers a lump sum in exchange for a share of future appreciation (typically around 4× the percentage invested).
- Settle within 30 years. Repay anytime during the term — by selling, refinancing, or buying Unison out — with no prepayment penalty. You pay back the original amount plus or minus Unison’s agreed share of the value change.
Unison at a Glance
- Product type: Home Equity Investment / Equity Sharing Agreement — not a loan, no APR
- Cash available: $30,000 to $500,000 (up to ~15% of home value)
- Monthly payment: None
- Term: Up to 30 years (settle anytime, no prepayment penalty)
- Minimum credit score: 620
- Max combined LTV: around 70% (scales with credit)
- Transaction fee: 3.9% of the investment, plus appraisal and closing costs
- Property types: owner-occupied primary residences (some second homes); generally not investment/rental properties
- Availability: roughly 29–30 states plus Washington, D.C.
- Downside sharing: yes — shares losses if your home falls in value, but only after year 5
Pros and Cons
Pros
- No monthly payments and no interest or APR.
- Longest term in the category — up to 30 years to settle.
- Widest state availability among the major home equity investments (~29–30 states plus D.C.).
- Genuine downside protection — shares in losses if your home’s value drops (after year 5).
- Oldest, most established HEI provider (founded 2004), with an A+ BBB rating.
- No prepayment penalty; a remodeling adjustment can shield documented renovation value from Unison’s share.
Cons
- Significant legal and regulatory overhang — a 2025 federal appeals ruling and multiple active class actions (detailed below).
- Higher credit floor (620) than Point (500) or Hometap (585).
- Potentially expensive value-sharing — typically about 4× the percentage invested, plus the ~5% starting Risk Adjustment.
- Lower maximum cash (up to 15% of value / $500,000) than some competitors.
- Downside protection does not apply if you settle within the first 5 years.
- Owner-occupied homes only — investment and rental properties generally don’t qualify.
Eligibility and Availability
Unison requires a 620 credit score — higher than Point (500) or Hometap (585) — and your maximum loan-to-value scales with your credit, up to roughly 70% combined LTV. Eligible properties are owner-occupied primary residences (single-family homes, townhouses, condos), and some second homes; you generally must occupy the home at least 180 days a year, and investment or rental properties typically don’t qualify.
On availability, Unison has the broadest footprint of the major HEI providers — roughly 29–30 states plus Washington, D.C. (sources vary between about 25 and 30 as Unison expands), including Arizona, California, Colorado, Florida, Michigan, Minnesota, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, Utah, Virginia, and others. Because coverage changes, confirm your state on Unison’s site before applying.
Fees and Costs
Unison charges a 3.9% transaction fee on the investment, plus third-party costs — appraisal (~$450–$1,250), inspection, and settlement fees (often several hundred to over a thousand dollars). But as with any HEI, the largest cost is the share of your home’s future value you give up. Two Unison-specific mechanics make this material: the ~5% Risk Adjustment that discounts your starting value, and an appreciation share that is typically about 4× the percentage invested (invest 10% of value, give up roughly 40% of appreciation). In a strong market, the effective cost can be very high — model your likely settlement cost carefully before signing.
Settlement and Downside Protection
You can settle anytime within the 30-year term by selling, refinancing, or buying Unison out, with no prepayment penalty. A genuine plus: Unison shares in depreciation, so if your home loses value you may owe less. The important caveat is that this downside protection only applies after the fifth year — if you settle within the first five years and your home has fallen in value, your floor is the original appraised value and Unison does not share that loss.
What to Consider Before You Apply — Including the Lawsuits
Unison’s product is competitive, but its legal situation is the single most important thing to understand, and it sets Unison apart from its peers:
- Federal appeals ruling (2025): In August 2025, the U.S. Ninth Circuit Court of Appeals ruled, applying Washington law, that a Unison Equity Sharing Agreement functions as a reverse mortgage — not the “option contract” Unison had characterized it as.
- Active class actions (2025–2026): Unison is the named defendant in several active putative class actions — including cases in California, Colorado, and Washington, D.C. — alleging the product operates as a disguised, high-cost (allegedly usurious) loan that strips homeowner equity, and that its “no-debt, no-interest” marketing is deceptive. One Colorado complaint alleges an $88,000 advance ballooned to a six-figure payoff within seven years. These cases are ongoing and unresolved; Unison disputes the claims.
None of this means Unison is unusable, and the broader HEI category has drawn regulator attention generally. But Unison is the lead defendant in the most consequential of these cases, so the prudent steps are clear: read your agreement in full, run the numbers for a rising-market scenario, and consider independent legal or financial advice before committing.
Who Unison Is Best For
Unison is best for long-horizon homeowners who want the longest possible term (up to 30 years), live in a state others don’t serve, and value built-in downside protection — and who are comfortable with a 620 credit floor and Unison’s active legal scrutiny. It’s a poor fit if you want the lowest cost, have lower credit (Point goes to 500), need a shorter horizon, own an investment property, or aren’t comfortable with the litigation overhang. Compare it against Point and Hometap, and against traditional options in our home equity hub, before deciding.
Frequently Asked Questions
Is Unison a loan?
Unison markets its Equity Sharing Agreement as a home equity investment, not a loan — there’s no interest, APR, or monthly payment, and you settle by sharing your home’s future value. Note, however, that a 2025 federal appeals court ruled the product functions as a reverse mortgage under Washington law, and several lawsuits allege it operates as a disguised loan. Unison also separately offers an actual Equity Sharing Home Loan, which is a different product.
What credit score do I need for Unison?
At least 620 — higher than Point (500) or Hometap (585). Your maximum loan-to-value also scales with your credit, up to about 70% combined LTV.
What states is Unison available in?
Roughly 29–30 states plus Washington, D.C. — the broadest footprint among major home equity investments, though exact counts vary by source as Unison expands. Confirm your state on Unison’s site before applying.
What does Unison cost?
A 3.9% transaction fee plus appraisal and closing costs. The bigger cost is the share of your home’s future value — typically about 4× the percentage invested, after a ~5% starting Risk Adjustment — which can be substantial if your home appreciates.
Is Unison being sued?
Yes. As of 2026, Unison faces several active class-action lawsuits (in California, Colorado, and Washington, D.C.) alleging its product is a disguised, high-cost loan, and a 2025 Ninth Circuit ruling found it functions as a reverse mortgage under Washington law. The cases are unresolved and Unison disputes the claims; homeowners should read agreements carefully and consider independent advice.
Does Unison share in my home’s losses?
Yes — Unison shares in depreciation if your home falls in value, but only if you settle after the fifth year. Settle within the first five years and that downside protection does not apply.
Best For: Long-horizon homeowners wanting the longest term and widest availability among home equity investments
Related reading
Unison has the highest credit floor of the equity investments we track. If that rules you out:
