2 Legit Companies That Will Give You Fast Cash (Not a Loan), as an Investment in Your Home
By The Money Manual Getting money for a big ticket item without taking a loan based on your home’s value is an option that should always be considered. Here are two.
Needing a big-ticket lump sum of money usually is just that – a need. Whether it’s to invest in education, health issues, starting a business, debt consolidation, a big wedding, or any emergency financial reality, it’s always pressing.
Anybody who owns a home has options, because they have an asset that is also usually the biggest big-ticket item in life. This means, of course, that those options need serious scrutiny, based on benefits, costs, and potential costs.
Here we look at a couple of the usual options, then provide a serious alternative that is not a loan, does not mean assuming debt, and instead involves allowing an investor to invest in your home’s value – in exchange for providing you with a big-ticket lump sum of money.
Home Equity Loan (HEL)
Your home’s “equity” is the amount your home is worth right now, minus the amount of existing mortgage. With a standard home equity loan (HEL), you will usually receive a fixed interest rate (one that doesn’t change), with the understanding that if you cannot keep up payments you could lose your home.
You can also find yourself looking at upfront fees and costs; and, of course, varying periods of time over which repayment must be completed (the longer the period, the less your monthly repayments), depending on the deal you strike based on varying factors. A Home Equity Line of Credit (HELOC), allows you to borrow amounts as required and pay interest on those sums. This method can sometimes seem more manageable in the early stages than the later stages.
So what’s a better alternative?
Unlock
Looking for a faster way to get the cash you need to cover a big expense without putting it on a credit card or applying for a loan and getting into debt? Well, if you’re a homeowner, you can get that cash by tapping into your home’s future property value right now with Unlock.
Unlock is a home equity sharing company. It helps homeowners use the equity they have in their homes to obtain large sums of money quickly without having to take out a loan or open a line of credit of any kind. Instead, the company will offer you a calculated amount of cash in exchange for a percentage of the proceeds you get from the sale of your house in the future (this part is key).
How it works:
- Unlock offers cash amounts ranging between $30,000 and $500,000 — the amount is determined by your home’s value and how much you still owe on it
- Once you have the money Unlock has agreed to give you, it’s yours to do whatever you want with
- There are no qualifying income requirements, but a FICO score of at least 500 is needed to apply
- An Unlock contract has a 10-year term, during which a homeowner can sell their house or buy out Unlock’s share to terminate the contract
The best part about this method is that since you’re not borrowing money, there’s no risk of debt. If you need a big chunk of cash quickly this is very cost-effective.
Important to note, Unlock is only available in the following states: Arizona, California, Colorado, Florida, Michigan, Minnesota, Nevada, New Jersey, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia, and Washington state.
Get the cash you need with help from Unlock todayWhat Is Unlock?
Unlock is another provider of a home equity agreement (HEA), based on the same model above.
The first step is to arrange a “home equity agreement.” This is a 4-step process:
Step 1: Use Unlock’s website to get an estimate of how much equity you could take out of your home. Unlock gives homeowners access to up to $500,000.
*No obligation; quote within a few minutes.
Step 2: Apply online. After you submit your application, Unlock will contact an independent third party to complete an appraisal and title report, which will determine your property’s current value.
Step 3: Receive an offer, decide how much equity you’ll take out, and sign the necessary documents. You’ll also have to pay a closing fee (4.9% of the money you’ll receive) and the cost of the independent appraisal.
Step 4: Receive the funds by wire transfer within a few days.
So that’s the fun part – getting your money!
But how will you pay them back?
When you sign the agreement, you’ll agree to share a certain percentage of your home’s future value.
Unlock also offers 10-year terms. This means you have ten years to settle your agreement, essentially by buying Unlock out by paying them their agreed share, or selling your home and paying Unlock their agreed percentage. You also have the option of extending your terms.
Note: Unlock enjoys a 4.7/5 star-rating on Trustpilot based on over 1,000 customer reviews and is also a Trustpilot verified company.
Review – Hometap
Review – Unlock
What to Do? Who to Choose?
This is a major lump sum of money with very specific terms attached. In the case of both Hometap and Unlock, there is no loan, because they are investing in a percentage of your home’s value – whether the value goes up or down.
Beyond that and the information provided here, you should visit both sites and learn all the details for yourself before making a decision. As shown above, both companies come with a lot of online support from happy customers on trusted sites.
So the best option is to check out all the details and find the best fit for you.
