(FinancialHealth.net) – Unison offers a homebuyer program that views a home’s potential, future value as a way to make a decision on whether or not they help you get the loan you desire. The company essentially shares the cost of the initial down payment with you. You pay as little as 5% and they pay the rest, up to 17.5%.
Unison looks at this as a co-investment instead of a mortgage loan. You and Unison share the appreciation value if it increases over the years, or they share in the loss. Although the company supplies a portion of the down payment amount, they have no ownership over your home, there is no added debt interest or monthly payments. The house belongs to you, they just share a portion of the future change in value of the home.
The company takes the money from the down payment out of the future value of your home. You are essentially tapping into the home’s equity and borrowing against that, rather than getting a traditional loan. When you sell, buy out, or reach the 30 year max term, you will have to pay Unison back the down payment amount that they helped you with initially. They disclose this information from the beginning, letting you know precisely what you will owe them in the future if they do this for you now.
Unison says there is no catch but, you do have to pay back the original investment, plus or minus their share of the home’s change in value. If you sell the house within the first 3 years of ownership and take a loss, Unison does not share in that loss. You can’t buy them out within the first 5 years of their investment and if you pass away without being survived by anyone else on the agreement your heirs or estate have 180-day grace period to settle it.
If you’re in a bind and need to get into a new house, or even looking for a home equity loan, this might be the perfect option for you. They are not too difficult to find, they cover 31 states from California to Massachusetts, however, you can get the most out of whatever you do by paying back their investment as soon as possible.
~Here’s to Your Financial Health!
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