in Shared Equity Agreements from Unison
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Where is the Unison HomeOwner product available?
Unison is based in San Francisco, CA. It was founded in 2004 and offers shared equity appreciation contracts to qualified applicants in 29 states (and Washington, DC).
How does the Unison HomeOwner 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.
As a home equity loan alternative, the Unison HomeOwner product allows you to tap into the equity in your home without the monthly payments that come from a traditional home equity loan or line of credit. This product primarily targets the home-equity-rich who are in need of cash for reasons such as a home improvement project or to eliminate debt.
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 HomeOwner invest into a shared equity agreement?
The Unison HomeOwner program offers equity investments that range from 5% up to 17.5% 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 HomeOwner program, the most Unison can invest in a single home is $500,000.
|Equity Investment Range||5% - 17.5%|
|Maximum Equity Investment||$500,000|
|Maximum Debt-to-Income Ratio||43%|
What are the costs associated with Unison HomeOwner?
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 HomeOwner 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 HomeOwner program includes a closing fee equal to 3.9% of their investment.
|Percentage Share of Home Appreciation||17.5% - 70%|
How long does it take to close a deal with Unison HomeOwner?
Unison HomeOwner will typically fund a deal within 21 days of approval.
What types of property does Unison HomeOwner consider?
Shared equity investors often have restrictions on the type of properties they will invest in. Unison HomeOwner will consider shared equity agreements secured by the following property types:
- Primary home
- Secondary homes and vacation properties
- Washington, DC
- New Jersey
- New Mexico
- North Carolina
- South Carolina
|Investment Range %||5% - 17.5%|
|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
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