Unison Homeowner Review – Home Equity Loan Without Payments

Unison is a homeownership investment company that has been helping a lot of people buy or tap into the equity of their home.

They have made home ownership dreams come true for a lot of people. Their programs have been a great stress reliever from monthly loan payments with accumulating interests.

How Does the Unison Homeowner Program Work?

Unison Homeowner is for people who already own a home. As a homeowner, you might want some quick cash for something like renovating your home.

Instead of taking a HELOC where you risk a change in the interest rate on your loan, Unison Homeowner offers to buy part of the equity on your home without any of the latter.

Just like Unison Homebuyer, Unison Homeowner does not require you to make any partial payments monthly. They are investing in your home so they can gain from it later when you sell it or when you buy them out.

You can buy out your contract anywhere between 3 to 30 years after entering an agreement with them. However, if in 30 years you haven’t sold your home, then you have to buy them out.

Unison Homeowner will invest from 5 to 17.5 percent in home equity shares of your property according to the market value at that time. Of course, they have a limit to their investment because of the risk that they are taking on your home. The current investment limit is $500,000.

Unison will share in both your losses and your gains. This, however, depending on the market value of your home when you sell, can cost you more. Unison can take from 17.5 to 70 percent of your profits or losses.

This is how Unison makes their money, and they sure maximize on it. They also charge 3.9 percent of their initial investment as a closing fee.

Unison takes the time to make sure that you fully understand their terms and conditions. If you qualify and your application is approved, then you can receive your funds in as little as three days. Unison investments are long term investments; therefore, they pick which homes to invest in.

Advantages

• It is not a loan – As mentioned earlier, Unison is not like other lenders who require you to make monthly payments with interest. They invest in your home with the hope that they will make money after you sell.
• You have options – With Unison Homeowner, once you receive the cash, it is yours to spend. You can renovate your home, pay for college education, clear your student loans— literally anything you want.
• One of a kind access to equity – Unison is the only one of its kind to help homeowners and buyers to access equity without sinking in debt.
• You have 30 years – After entering an agreement with Unison, you can use the funds for up to 30 years stress-free. A lot can happen in 30 years— like paying Unison back and keeping your dream home.
• Unison can be bought out – Unison allows a special termination where you can buy their share of equity on your home after three years. If you are an excellent financial planner, this is definitely an option.
• You have full ownership of your home – Unison is a lot like a silent partner. They care about your home, but they are not responsible for it. Your house is yours.

Another advantage of Unison is that you can repay Unison with cash out of the sales price if you sell your home within ten years. Additionally, if you sell your house at a loss, it means that you pay a less amount than the one you took.

Disadvantages

• It might cost you more in the long run – As discussed above in this article, Unison can take up to 70 percent of the profit or loss after you sell. As a long-term investment, it might make sense, but when you do the math, you might be better off with a HELOC.
• You need to keep a record of any renovations on your home – This is important because if the improvement directly increases your home’s worth, then you can save a lot of money. This only happens when you file a remodeling adjustment. Be aware that a third party will determine the value of your property so this can go either way.
• Unison will not share in losses before within three years – When you sign an agreement with Unison, you are meant to stay in your home throughout the agreement. If you decide to sell your house within or before three years within the agreement and sell at a loss, Unison will not share in the losses or any other costs for that matter.
• Third party costs – There might be no monthly payments, but you have to pay 2.5 percent of the loan amount as transaction fees on top of the 3.9 percent closing fees. This might be a lot of money, so you need to really think about if it’s worth it.
• Does not work with rentals – If you decide to turn your home into a rental property, you have to buy Unison out.

Who is Unison Homeowner For?

Unison homeowner is a product for homeowners who are interested in taking out a loan in exchange for some amount of money for one reason or another.

Not everyone is a candidate for this program. Before Unison enters into an agreement with you, they will have to assess your credit, income, and property.

If you have a FICO score of at least 680 and a less than 50 percent DTI score, then you are a potential candidate for this program. Unison homeowner will only invest in primary residences. Additionally, the home has to be in good condition, and you have to maintain it accordingly.

If you meet all the above criteria, then Unison Homeowner is for you. If you are denied a loan from a traditional lender and have no other options, then Unison might be an option for you.