Unison
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About Unison
Unison Synopsis
Review Summary: Unison is a home equity investment company that co-invests in residential properties. Homeowners can receive up to 17.5% of their home’s value in cash without taking on additional debt, making monthly payments, or paying interest. Unison receives a cut of the home’s value when the home is sold after a 30-year term, or the homeowners buy out Unison’s share.
Recommended for: A home equity investment from Unison may be a good option for homeowners who plan to stay in their homes for at least five years and who are in need of a large infusion of cash. You must also live in one of the 30 states that Unison is licensed to operate in. (Check the full list below.)
| What is a Home Equity Investment? |
|---|
| A home equity investment (HEI) is money homeowners receive in exchange for a cut of the home’s market value when it is time to settle the investment. This is an option for homeowners who would like to access equity in their homes but don’t want to sell their homes or take out a loan. The investments are interest-free and do not require monthly payments. They are paid back with a percentage of the market share increase at the end of the term, when the home is sold, or when the homeowner decides to buy out the investment company at an earlier date. Please note that home investment companies may vary in how they work. |
Pros and Cons of Unison Home Equity
| Pros | Cons |
|---|---|
| Instant pre-approval | Must stay in the home for at least five years after the investment is made |
| Investment opportunities for new homes | |
| Available in 30 states (more than any other HEI company) | |
| In business 18 years (longest in the industry) |
Unison Reviews
| Consumer Review Platform | Rating |
|---|---|
| Better Business Bureau (BBB) | A+ Rating; 1 / 5 rating with 14 reviews |
| Supermoney | 2.6 / 5 stars with 16 reviews |
| Trustpilot | 4.1 / 5 stars with 160 reviews |
| Yelp | 2.5 / 5.0 rating with 54 reviews |
Unison Full Review
Overview
Unison was the first company to enter the home equity investment space.
Unison calls its home equity investment program the Unison HomeOwner program.
With a home equity investment through Unison, homeowners can receive up to 17.5% of their home equity in cash. Since the funds are an investment, not a loan, it does not add to the homeowners’ debt, require monthly payment, or include interest.
Homeowners settle the investment when they sell their homes. Unison shares in a percentage of the home’s value at the time of the sale. Homeowners have 30 years to settle the investment.
The funds can be used for a variety of purposes including:
- Home renovations
- Paying off debt
- Start a business
- Increase savings
- Fund retirement
- Making a large purchase
To qualify for a home equity investment with Unison, homeowners will need the following:
- Fair FICO credit score of at least 620
- Debt-to-income (DTI) ratio: Depends on credit score
- Loan-to-value (LTV) ratio: 75% maximum
- *Live in the home
- Plan to stay in the home at least five years
Single-family homes, townhouses, and condominiums may all qualify for a co-investment opportunity.
*In most cases, homeowners interested in obtaining an investment are required to live in the home, but Unison does invest in second homes or investment properties in certain cases. It’s recommended to talk to a Unison representative for more details if the home is not your primary residence.
Unison Home Equity Application Process
This is the process homeowners can expect if they decide to apply for a home equity investment with Unison:
- Check eligibility and get pre-approved. Step one is making sure the home is eligible for a co-investment. According to Unison, this process takes seconds.
- Submit your application. If you get pre-approved, the next step is submitting an application. This can be done through Unison’s online portal. You can obtain assistance from a Unison program specialist with this process if needed.
- Upload documents. Unison will provide a list of documents that will need to be submitted as part of the application process.
- Complete an appraisal. The final step in the approval process is to receive an appraisal of your home. In some cases, a property inspection will also be required.
- Receive your offer. Unison will send you an official offer letter in addition to a closing package. Once the offer is signed, a closing will be scheduled, and the funds will be paid within three days.
The investment term is 30 years. At the end of the 30 years, the home will need to be sold or the homeowners will need to buy out Unison’s portion. This includes the investment amount and Unison’s percentage share of the change in the home’s value.
Unison HomeOwner Rates and Fees
These are the rates and fees homeowners pay to obtain an investment from Unison:
- 3% transaction fee at closing
- Appraisal fees ($450 to $1,250)
- Settlement costs ($700 to $1,750)
The costs will vary depending on where you live.
Unison Company Information
Unison was the first company to enter the home equity investment space. It was started in 2004 by Thomas Sponholtz.
Sponholtz says that the idea was borne out of two frustrations: watching homeowners go into debt to access the equity in their homes and no meaningful way for investors to invest in the residential real estate market.
Unison created a way for homeowners to receive funds without taking on more debt or monthly payments through co-investing. Sponholtz sees home equity investments as a way to democratize the residential real estate market.
As of August 2022, Unison has invested in 9,000 homes.
Unison has two offices in the following locations: San Francisco, California, and Omaha, Nebraska.
States Serviced by Unison Home Equity
Unison home investments are available in the following 30 states:
- Arizona
- California
- Colorado
- Delaware
- Florida
- Illinois
- Indiana
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Nebraska
- Nevada
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Utah
- Virginia
- Washington
- District of Columbia / Washington D.C.
- Wisconsin
All reviews updated as of 11/1/22.
Address: 650 California Street San Francisco, CA 94108
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