Unison Homebuyer Review – Avoid PMI Without Extra Payments

Saving to avoid Private Mortgage Insurance (PMI) can take years, especially if you want to buy a home in New York or Los Angeles.

Unison has come up with a unique solution that does not put you in debt. Instead, they co-invest with you in your home by giving you the amount of your down payment after you pay as little as 5 percent.

How Unison Homebuyer Works

If you desire to be a future homeowner without the stresses that come with paying a PMI, then Unison can be a solution for you.

Unison helps you to pay for the down payment on your dream home in exchange for equity on your house. They only finance the down payment on the home, the homebuyer makes the rest.

The equity shares that Unison will have will depend on how much you can afford as an individual for the down payment.  Unison can match up to 50 percent on your down payment.

It is essential to understand that these shares are for the future market value of your home. This means that if your property gains value so does Unison’s share of your equity and vice versa.

Unison does not require any monthly payments from you. Their goal is to profit from your investment in the future.

That said, Unison has a threshold amount of $500,000 that they will invest in your home. Their equity investments start from 5 to 20 percent of the market value for your property. Also, the maximum debt-to-income ratio is about 43 percent.

In addition to zero monthly payments, you don’t have to pay interest either. Their investment is a bit of a risk because they can’t really know if there will be a change in the value of your home in the future. It is only when you sell your property that Unison makes their money back.

Once your application is approved, Unison will give you the funds you need in 21 days. In addition to having the $500,000 cap on investment,

Unison also chooses the kind of homes that they invest in. They look at properties that are likely to appreciate in value in the future such as vacation homes, primary, and secondary homes.

The Homebuyer program requires that you pay a 2.5 percent origination fee. Other third-party expenses included in the program are closing and credit reporting services fees. You will also be required to work with one of their partner lenders.

As part of the Unison Homebuyer agreement, you are allowed to buy them out of your home investment after three years of owning it. Unison will just require you to pay back their original investment plus the shares on the profit you would have made if you sold the house.

Additionally, you can be in partnership with them for up to 30 years if you decide not to sell your home. There is absolutely no pressure with Unison.

With Unison, you are also entirely responsible for taking care of your home and maintaining it. If you want to do any renovation or changes you do not need Unison’s permission to do so. Your home is yours. While this is not your usual mortgage loan, it is important to keep in mind that you are indebted to Unison.

Advantages

• Avoid PMI costs – Private mortgage insurance can cost you loads of cash in the long run, especially if you borrow a large amount of money. As mentioned above, with Unison Homebuyer there are no interest rates or monthly payments. You can, therefore, save a lot of money by choosing Unison.
• Low Mortgage Payments – Your down payment usually determines your monthly mortgage payments. Monthly payments are more economical when you put down a significant amount. Unison can match up to 50 percent of your down payment which translates to lower mortgage payments.
• Hold on to some your savings account – Should you choose Unison Homebuyer then you will not need to get a huge loan. Unison can match your down payment if you pay as little as 5 percent on your down payment. This means that even if you have your full 20 percent, you can choose to keep some of that money by partnering up with Unison.
• Available in Most states – Unison is based in San Francisco but is available in a lot of other states.
• Promotes a responsible home- buying environment– Unison is going an extra step to educate their customers on what exactly they are getting into. They give their potential partners a small exam to make sure that they fully comprehend the termszand conditions of the agreement.

Disadvantages

• It might cost you more than a PMI – As you now know Unison invests in the future. If by the time you sell your home the market value has significantly increased, you might end up paying more than you would a PMI.
• Unison will not share in losses if you sell within the first three years – Unison investments are usually long-term. If you are not planning on buying a permanent home, then Unison might not be a good option for you. Only after three years of purchase will they share the losses with you.
• Luxury properties might not qualify – A luxury property is a property that has some special features such as spas and saunas among others. Luxury properties are very expensive. Seeing as Unison has a limit amount of investment in these homes such candidates might not be eligible for this program.
• Only for new purchases – This program is only for home purchases. The good news is that Unison Homeowner can help you tap into your home’s future value in a similar way.

Who is Unison For?

Unison is for anyone interested in purchasing a home for the foreseeable future. It is for you if you have good credit. Unison is a debt but without any stress of monthly payments and increased interest rates.

For someone who is financially responsible, working with Unison can be a step in the right direction. Unison is for someone who wants to set up roots.

This is not a short-term solution or a way of acquiring numerous properties without a debt hassle. Unison Homebuyer is currently available everywhere.