Unison HomeOwner Review

Unison HomeOwner is offered by Unison, a financial services company founded in 2004 and based in San Francisco, CA. Unison HomeOwner is available in 31 states (and Washington, DC).

Key takeaways

• Jumbo investments available. Unison HomeOwner will invest up to $500,000 in a home, which is more than what most shared equity companies offer.
• Long contract terms. Unison HomeOwner offers contract terms of up to 30 years, which provides homeowners with plenty of time to settle their investment. Other home equity investors have a maximum term of 10 years.
• Share of home appreciation. Unison HomeOwner bases its return on how much a property increases in value over time. When the contract ends, the buyback cost will be the original investment plus 20% to 70% of the home's increase in value. If your home has lost value, Unison HomeOwner will also share in the loss.
• Equity cash-out. Unison HomeOwner allows homeowners to access up to 17.5% of the property's value without taking on debt. However, it cannot be used toward the down payment of the property that secures it.
• Available in most states. Unison HomeOwner is available in 31 states.
• Good credit required. You will need a credit score of at least 680 to qualify for Unison HomeOwner.

Unison HomeOwner Pros and Cons:

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.

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 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.

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 receive an amount that ranges from 20% 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.

What are the terms for a shared equity investment via Unison?

You can use the funds provided by Unison HomeOwner for up to 30 years. After 30 years, you will need to either sell your home or buy them out.

To buy Unison out, you would need to pay back their original investment plus or minus their share of your home’s change in value.

How long does it take to close a deal with Unison?

Unison HomeOwner will typically fund a deal within 21 days.

What types of property does Unison 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.