What We Do
Unison helps you free up cash by tapping into your home’s equity-
Without any of the downsides associated with traditional lenders.
We created a smart alternative to traditional credit that lets you convert existing equity in your home to cash. Unlike a loan, with Unison there are no monthly payments or interest. We’re able to do this by buying anto purchase the equity in your home (up to 17.5%), and when you eventually sell your home, you send us a predetermined portion of your home’s appreciated value, plus the initial payment amount we gave you.
How it Works
Here’s a quick look at the lifecycle of the program.
When we begin working together, we give you a cash payment. Unison then has the future right to a percentage of the appreciation of your home. Choosing to receive less money from us today means the Investor Percentage will be lower. And choosing to receive more money means the Investor Percentage will be higher. We’ll let you know what you qualify for, but from there it’s really up to you to decide how much to accept. The choice ultimately depends on what you need financially and where your comfort level is with the Investor Percentage.
Once you receive your payment, you’re free to do whatever you want: Fund a remodeling project, pay for tuition, start a business, etc. Until you sell (or 30 years pass), there won’t be much interaction with us, unless you need us. All you need to do during that time is keep your home in good repair and stay current on your mortgage, real estate taxes, insurance, etc. You’re still the owner of the home, so all the advantages of owning are completely yours, including any tax advantages.
When you sell your home (or 30 years passes) your agreement with Unison ends. This is when you’ll send us a payment equal to our initial payment, plus (or minus) our portion of the change in your home’s value. Check out how it works
If you’re sitting there wondering if there’s a catch, there isn’t.
So, how do we survive if we’re waiting upwards of 30 years for our investments to come back?
Are we just really patient people? Actually, yes. Our investors are big institutions
(think university endowment funds, pension funds, etc.) who require a mix of long and short-term investments.
They look to us for long term investments.
How We Stack Up
See how we compare to other home equity products out there.
With us, there are no interest rates or monthly payments. In addition, you control the length of the term by deciding when to sell your home, including the ability to buy us out after three years (more on this later). This gives you the flexibility to do what’s best for your family (Note: There is a maximum term of 30 years).
We only get a portion of future appreciation. All of the home equity you have when we start working together remains yours; we just convert a portion of it to cash for you.
Home Equity Loans
(also called home equity lines of credit)
These provide access to cash, but require monthly payments, often over a short ten‐year term. Another downside is that a lot of these have a variable interest rate, which can end up costing you a lot more than you budgeted. Not ideal (unless you’re the bank).
This is a type of loan based on your home equity. However, with reverse mortgages your home’s equity typically decreases over time. That means over a period of time, a reverse mortgage can actually consume 100% of your home equity, leaving you with a big financial loss. On top of that, it’s difficult to qualify due to age and debt restrictions. All situations that are not ideal.
Note: There is a one time time transaction fee equaling 3.9% of the cash proceeds due to Unison at HomeOwner Agreement closing. This fee covers all processing and third-party costs from appraisal and home inspection to titles, state taxes, and settlement costs.
Once we did get on board with the Unison program, I realized I was going to be able to pay off my debt… and have extra money to do remodeling with.
How Much Can I Get?
So you know you can extract the equity sitting in your home,
here’s where you go to decide how much you want.
Your Home’s Value
This is the first consideration when determining how much you’re eligible to receive. Simply put, the more your home is worth, the more cash we’re able to provide. The less it’s worth, the less we can provide.
The Percentage of Your Home’s Value + Payment
We can provide a payment to you for up to 17.5% of your home’s value (“Percentage of Home Value”) today. So if your house is worth $500,000 we can, for example, multiply that by 10% to arrive at a payment of $50,000 if that’s what you need.
The Investor Percentage
This is what determines how much of your home’s appreciated value is paid to us later, and it is tied to how much money you receive. In a typical HomeOwner deal, the Investor Percentage is calculated by multiplying the percentage of your home’s value you receiving today, by four. So if you receive 10% of your home’s value today, the Investor Percentage is likely going to be 40%. Choosing to receive less money from us will result in a lower Investor Percentage, and obviously receiving more money from us will result in a higher Investor Percentage. Regardless, our minimum Investor Percentage is 20% and our maximum is 70%.
(“The Unison Investment Payment”)
is around $500,000 or 17.5% of your home’s value, whichever is higher.
Your Cash Payment & The Investor Percentage
Check out a few scenarios to see how your home’s value
and the amount of money you receive affect the Investor Percentage.
Is your home currently worth:
|If your home is worth:||Percentage of home value:||Would give you a payment of:||And require an Investor Percentage of:|
Please note: The numbers in the tables are for a client with average/above average credit, whose Unison HomeOwner Agreement is made on their primary residence, and whose home is typical of other homes in the neighbourhood. In situations where a client has below-average credit or otherwise differs, the money offered may be lower and/or the Unison Investment Percentage higher. Your Program Specialist will discuss your specific transaction terms with you.
Once you receive your payment, you’re free to do whatever you want
Fund a remodeling project, pay for tuition, start a business, etc. Until you sell (or 30 years pass), there won’t be much interaction with us, unless you need us. All you need to do during that time is keep your home in good repair and stay current on your mortgage, real estate taxes, insurance, etc. You’re still the owner of the home, so all the advantages of owning are completely yours, including any tax advantages.
When you sell your home (or 30 years passes) your agreement with Unison ends. This is when you’ll send us a payment equal to our initial payment, plus (or minus) our portion of the change in your home’s value.
How Do I Get Started?
The process is easy… follow these steps to get started today
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