The housing market can be a pain in the butt to deal with. That is why it may take a new way of thinking when it comes to owning a home. That is where Unison shines. Unison gives homebuyers a program that looks at a home’s possible future value. This guess of the future home value will determine if Unison can get you the loan that you need. Instead of being your lender, the company views this as a co-investment. With a 20% down payment, you could pay as little as 5% while the company covers the rest.
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 an 180-day grace period to settle it.
If you’re in a bind and need to get into a new house, or are even looking for a home equity loan, this might be the perfect option for you. They are not too difficult to find, they cover 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.
Frequently Asked Questions About Unison
What Will Show Me That I Can Trust Unison?
Firstly, this company has been around for a long time. They were founded in 2004. If a business can survive past a pandemic, that should show a strong business structure. However, there are other factors that prove Unison’s trustworthiness.
The Better Business Bureau (BBB) also gave them an A+ rating. Not only do they have a strong score with the BBB, they have been featured in top publications. Sources like Forbes, The New York Times, Bloomberg, and more wrote about Unison. You can even review personal stories from actual customers online.
How Can I Figure Out My Eligibility?
Unison will check out your credit, income, and property. They will also need to look at the house you want. Typically, the house should be your primary residence. Your home will also need to pass other guidelines set by Unison. Luckily, the entire process does not need any financial obligation, and will not impact your credit.
What Will Happen at The End of The Agreement?
The agreement time you have for your Unison agreement can last for up to 30 years. Once you reach that 30 year mark, you will have two options. You can choose to sell your home, or you can buy out Unison.
If you want to buy them out, you should be ready. You would have to pay the amount that equals the original investment plus more or less depending on how your home changed in value. Unison uses an unrelated third-party appraiser in order to figure out the value of your home in the fair market at the time you wish to buy them out.
You could also possibly refinance your home, depending on the case. Sadly, there is no guarantee for this option.
Will I Still Own the Home if I Co-Invest?
Yes! You are still the owner of your house even if you choose to co-invest with Unison. As a company, they do not have rights of occupancy nor are they an owner at all. Unison acts as an investor so you will still be able to get the perks of owning a home like getting tax deductions.