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Unlock

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LAST UPDATED: June 7th, 2022

Unlock is a home equity sharing company that enables homeowners to get the money they need, with no monthly payments or interest charges. Just like other shared mortgage companies, Unlock pays the homeowner a calculated amount for a share in the proceeds from selling the house. 

Depending upon the amount of debt on the property and home value, Unlock can offer homeowners between $30,000 to $500,000 in cash. When the contract ends, Unlock will receive 5 percent to 43.75 percent of the home’s equity. The share percentage and investment depends on a variety of factors: home value, debt on the property, homeowner’s existing equity, minimum credit scores, etc.

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The Good

  • High Loan-to-Value Rate
  • Accepts Low Credit Scores

High Loan-to-Value Rate

One component that sets Unlock apart from other home equity companies is its high LTV rate of 85 percent. Higher LTV rates mean a higher financial risk for the lender, allowing homeowners to qualify for even more money. Other comparable companies have LTV rates of around 70 percent to 80 percent. Unlock exceeds the industry standards in LTV rates — a major benefit to a homeowner.

Accepts Low Credit Scores

Most shared equity companies accept clients with poor or low credit scores. The industry standard lands around 600. Unlock, along with a few other major home equity businesses accept clients with credit scores as low as 500. This means more people, whatever they’re credit history, can build their home equity.

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The Bad

  • 10-Year Contract
  • Fairly New, Not Yet Established
  • Available in Limited Locations

10-Year Contract

The industry average for term agreements usually falls around 10 years. However, Unison, another shared home equity company, offers terms up to 30 years. While Unlock is in the 10-year camp with other well-established home equity businesses, Unison has set a higher, desirable standard.

Fairly New, Not Yet Established

Unlock opened in 2019. Compared to other home equity sharing companies, Unlock is fairly new to the industry. The company has not yet tapped into the top home equity companies like Unison, Noah, Point, or Hometap. 

Available in Limited Locations

Currently, Unlock serves 14 states within the United States: 

  • Arizona
  • California
  • Colorado
  • Florida
  • Michigan
  • Minnesota
  • North Carolina
  • New Jersey
  • Nevada
  • Oregon
  • Tennessee
  • Utah
  • Virginia
  • Washington

Residents in states not listed above will not qualify for Unlock’s services.

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The Bottom Line

Although Unlock is a fairly new company, it seems the business has met the standards of the home equity industry. The company’s strategy and eligibility qualifications are similar to other equity companies. However, Unlock’s LTV rates exceed its competitors’. Because of higher LTV rates, homeowners can receive larger sums of money from their equity agreements.

Unlock does fall behind its competitors in a couple ways. The company is new and not quite established with a good reputation or references. Also, Unlock, like many other equity businesses, has a term period of 10 years. Other leading companies have exceeded the average, promising terms up to 30 years. Although new, Unlock has become a standard home equity business, with high LTV rates, low credit score qualifications and an average 10-year term contract.

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