Vibrant Performance Launches Unlock Affiliate Program
Accessing the equity in your home can be a stressful experience. You just need some money to do some home updates and renovations, but after paying your mortgage and other expenses, there doesn’t seem to be much cash left to accomplish these things.
The good news is that after years of making mortgage payments, you have equity built up in your home. But after going through the mortgage process, the idea of your entire financial life laid bare in front of a loan officer doesn’t exactly thrill you. What’s more, you’d rather save yourself the heartbreak of being denied a loan because of those two late credit card payments.
Fortunately, there’s more than one way to convert the equity in your home into purchasing power. Vibrant Performance is proud to partner with Unlock, a company that allows equity-positive homeowners to do exactly that. In this article we’ll show you how Unlock works and the many benefits of a home equity agreement (HEA).
What is Unlock?
Unlock is a company that presents an alternative solution to accessing the equity in your home.
The best way to describe what Unlock is is to first describe what Unlock isn’t. It’s not a loan. There are no monthly payments. What it is is an agreement that lets a homeowner receive money equal to a percentage of the home’s value. The money isn’t paid back until the home sells. This is known as a home equity agreement, or HEA.
Unlock is also not a reverse mortgage. Entering into an Unlock HEA has no age requirements. Although it can provide cash to a homeowner based on the value of their home similar to a reverse mortgage, an unlock agreement does not require that your original mortgage is paid off, and does not charge any interest.
How does an HEA work?
An HEA is an agreement Unlock makes with a homeowner. Unlock agrees to pay the homeowner cash for a share of the proceeds from the future sale of the home.
An example of how an Unlock HEA works would be as follows. If you have a home valued at $500,000 with a $200,000 balance on the mortgage, that means you have $300,000 of equity in the home.
You may not need to use all $300,000 of that equity, but $80,000 would probably go a long way to pay college tuition and kick off that home renovation you’ve been trying to start. Unlock, acting as a real estate investor, agrees to give you the $80,000 in exchange for 16 percent of the future home value after 10 years. 10 years pass and your home is now worth $600,000. The homeowner will pay Unlock $96,000 (16 percent of the $600,000). When the contract reaches its term or the house is sold, the homeowner pays to Unlock the original amount extended to the homeowner ($80,000), plus part of the proceeds of the appreciated value ($16,000).
An HEA is not a loan. There are no monthly payments and there is no interest charged. The amount is simply paid back to Unlock per the terms of the agreement either when the contract term ends (typically 10 years), or when the home is sold.
How does an HEA benefit the homeowner?
Unlock assumes all the risk.
When you enter into an HEA, Unlock gives you money under the assumption that your home will increase in value over the term of the agreement. Unlock will make money if your home appreciates during the term. If your home depreciates in value, Unlock shares in the loss, and the homeowners payback amount is reduced.
If the home from the previous example drops in value to $400,000, the homeowner would then pay back $64,000 instead of $96,000.
Unlock isn’t a bank.
Because Unlock is not a bank, it is easy to qualify for an HEA. Because Unlock is only concerned with the equity you have in your home, there is no minimum income requirement, and you can qualify with a credit score as low as 500. When you apply for an HEA with Unlock, they do a soft inquiry into your credit, but this has no effect on your score.
Unlock’s share can be bought back.
Unlock is the only home equity investment company that allows the homeowner to buy out its position with partial payments any time during the 10 year term of the agreement.
With Unlock, you can enter into an HEA for properties that are single family, condominiums, multi-unit properties, and townhouses. Properties can also be owner-occupied or non-owner occupied, like vacation homes for example. Investment and rental properties are also eligible.
Unlock the power of your home’s equity.
Unlock is a customer-focused company that can help you harness the equity in your home to accomplish your goals. Unlock is accredited by the Better Business Bureau, and is currently serving homeowners in the following states: California, Florida, Colorado, Washington, Oregon, Michigan, Arizona, New Jersey, Virginia, Utah, North Carolina, Minnesota, Nevada, and Tennessee.
If you have an online audience and are interested in earning money partnering with an up-and-coming, innovative, and respected real estate investment company, join the Unlock Affiliate program. You can generate income when a visitor to your website or follower of your social media account clicks your Unlock tracking link.