Unlock

• No Monthly Payments
• No Interest Charges
• Flexible Income Requirements
• High Maximum Loan-to-Value (LTV) Ratio
• Accepts Low Credit Scores

No Monthly Payments

Unlock’s home equity agreement isn’t a loan, which means homeowners don’t need to make payments as they would if they had borrowed money from a bank or lender. Homeowners receive a lump-sum payment, based on a percentage of equity they want to sell, and Unlock receives a percentage of the home’s future value when the customer sells or buys back their equity.

Unlock provides customers with the ability to buy back their equity at any time during the term and allows customers to do a partial buy-back, making it one of the only home equity companies to offer that option. 

No Interest Charges

Loans require borrowers to make monthly payments based on a specified interest rate, but an Unlock home equity agreement enables homeowners to defer the cost of financing until they terminate the agreement. This gives homeowners the power to use their equity interest-free for the duration of their agreement.  

Flexible Income Requirements

To qualify for a typical home equity loan or line of credit, borrowers should typically have debts less than 43 percent of their monthly income. However, to qualify for an Unlock HEA, customers only need 30 percent equity in their home and a minimum credit score of 500. Note that the company will ask for income verification in some cases, such as when the customer’s property is used as rental property.

Easier Than Traditional Loan Process

Sometimes, getting a loan can be quite a tedious process. However, according to Unlock, it takes just a few minutes to create an account and get preliminary terms for a home equity agreement. If you decide to move forward, you fill out an application and upload a handful of supporting documents. Unlock will then review the application, order third-party reports, and complete underwriting. The whole process takes around 30 days from start to finish. 

High Maximum Loan-to-Value Ratio

One component that sets Unlock apart from other home equity companies is its high LTV ratio of 80 to 85 percent, depending on home value. Higher LTV ratios generally mean 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 their credit history may be, can build their home equity.

• 10-Year Contract
• Younger Company
• Available in Limited Locations

10-Year Contract

The industry average for term agreements usually falls around 10 years. However, there are other firms that offer longer terms, even up to 30 years, which may better fit the needs of some homeowners.

Younger Company

Unlock opened in 2019. Compared to other home equity sharing companies, Unlock is fairly new to the industry. 

Available in Limited Locations

Currently, Unlock offers its home equity agreement in 13 states: 

• Arizona
• California
• Florida
• Michigan
• North Carolina
• New Jersey
• Oregon
• Pennsylvania
• South Carolina
• Tennessee
• Utah
• Virginia
• Washington

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