Alternative Financing: Equity Sharing & PACE Programs for Austin Homeowners
Traditional loans don't work for everyone. Here's an honest look at equity-sharing agreements and PACE programs — what they are, when they make sense, and what to watch out for in the Austin market.
Most homeowners think of financing in terms of loans — borrow money, pay it back with interest. But there are other structures worth knowing about, especially if you're equity-rich but cash-poor, or if traditional loan qualification is challenging. Here's a plain-English breakdown of two alternative options: equity-sharing agreements and PACE programs.
Equity-Sharing Agreements: Sell a Piece of Your Future Appreciation
Companies like Unison, Point, and Hometap offer equity-sharing agreements that work like this: they give you a lump sum of cash now (typically 10–20% of your home's value), and in return, they receive a percentage of your home's appreciation when you sell or refinance — usually within 10–30 years.
The appeal is obvious: no monthly payments, no interest, no debt on your credit report. If you're a retired Austin homeowner sitting on $400,000 in equity but living on a fixed income, this can be a legitimate way to fund a renovation without touching your savings or taking on debt payments.
What to Watch Out For
- • You're giving up upside. Austin home values have appreciated significantly. If your home goes up $150,000 and you gave away 20% of appreciation, that's $30,000 you won't see at closing.
- • It's a lien on your property. This complicates any future sale or refinance. Your Realtor and lender need to know about it.
- • Read the fine print. Some agreements have minimum appreciation floors that benefit the company even if your home doesn't appreciate much.
- • Get a real estate attorney to review it before signing anything.
PACE Programs: Energy Efficiency Financing Through Your Tax Bill
PACE (Property Assessed Clean Energy) programs finance energy-efficiency and resilience improvements — solar panels, insulation, HVAC upgrades, roofing, and similar projects. The loan is repaid through your property tax bill over 5–25 years, which means it transfers to the next owner if you sell (a feature or a bug, depending on your perspective).
In Texas, the Texas PACE Authority administers the program. Travis County and several surrounding municipalities participate. The big advantage: qualification is based on your property's equity, not your credit score. This makes PACE accessible to homeowners who might not qualify for traditional loans.
PACE in Austin: What Qualifies
Note: Standard flooring does not qualify for PACE financing. For flooring and bathroom remodels, see our contractor financing options.
The Honest Comparison
For most Austin homeowners doing a flooring or bathroom remodel, traditional contractor financing or a home equity loan is going to be simpler, faster, and more cost-effective than equity-sharing or PACE. These alternative options have their place — but they also have real complexity and cost that isn't always obvious upfront.
If you're selling your home and want to upgrade the floors before listing, our pay-after-closing program is the cleanest no-monthly-payment option available. We install, you sell, we get paid from escrow. No liens, no equity sharing, no property tax complications.
Let's Find the Right Financing for Your Project
Whether you're in Travis County, Williamson County, Hays County, or anywhere in Central Texas — call us and we'll walk through your options together.