|Investment Range %||5% - 20%|
|Investment Range $||Up to $500,000|
|Share of Home Appreciation||17.5% - 70%|
|Shared Equity Use Case||Mortgage Down Payment|
Unison HomeBuyer Review
Where is the Unison HomeBuyer product available?
Unison is based in San Francisco, CA. It was founded in 2004 and offers shared equity appreciation contracts to qualified applicants in 30 states (and Washington, DC).
How does the Unison HomeBuyer product work?
A shared equity agreement (also called a shared appreciation agreement or shared equity contract) is essentially a way to sell a small fraction of the equity in your home to an investment company. The two primary use cases are to help finance a mortgage down payment and secondly, as a way to extract equity/cash out of your home.
The Unison HomeBuyer product supports home purchase down payments. Unison aims to help more people afford to buy a home. Rather than giving you a loan, they invest alongside you in your home by matching up to 50% of your down payment. Through the Unison HomeBuyer product, Unison helps to finance your mortgage down payment in exchange for a share of the home’s future appreciation.
The transaction is secured like a loan but you won't be paying Unison a monthly loan payment with interest. Instead, if your home goes up in value, Unison share in the gain; if it goes down, they share in the loss.
How much will Unison HomeBuyer invest into a shared equity agreement?
The Unison HomeBuyer program offers equity investments that range from 5% up to 20% of a property's market value. As you might expect, Unison has a cap on the amount of funding they will invest in a single home. For the Unison HomeBuyer program, the most Unison can invest in a single home is $500,000.
|Equity Investment Range||5% - 20%|
|Maximum Equity Investment||$500,000|
|Maximum Down Payment Match Percentage||50%|
|Maximum Debt-to-Income Ratio||43%|
What are the costs associated with Unison HomeBuyer?
Unlike loans, the costs associated with shared equity investments are not based on an interest rate. There are no monthly payments or accrued interest. Instead, Unison shares in the change in value of your property. If your property value goes up, Unison gets a share. If the value drops, Unison shares in the losses. They only get their money back when you sell your home – and they typically only make a profit if you also make a profit.
Under the Unison HomeBuyer program, at the time your home is sold Unison will recieve an amount that ranges from 17.5%, up to 70% of any appreciation or depreciation in the home’s price.
The Unison HomeBuyer program includes a closing fee equal to 2.5% of their investment.
|Percentage Share of Home Appreciation||17.5% - 70%|
How long does it take to close a deal with Unison HomeBuyer?
Unison HomeBuyer will typically fund a deal within 21 days of approval.
What types of property does Unison HomeBuyer consider?
Shared equity investors often have restrictions on the type of properties they will invest in. Unison HomeBuyer will consider shared equity agreements secured by the following property types:
- Primary home
- Secondary homes and vacation properties
- Washington, DC
- New Jersey
- New Mexico
- New York
- North Carolina
- South Carolina
|Investment Range %||5% - 20%|
|Down Payment Match Percentage||Up to 50%|
|Investment Range $||Up to $500K|
|Credit Score Range||
680 - 850
|Immigration Status Considered||
|Supported Income Types||
|Shared Equity Use Case||
|Verification Documents Required||
Unison Shared Equity Agreements
Investment Range %
Investment Range $
Share of Home Appreciation
Shared Equity Use Case
- Equity Cash-Out