Unison Review

Overview

Unison’s Equity Sharing Home Loan is a 10-year, fixed, interest-only second mortgage that combines affordable access to equity with shared appreciation. It provides homeowners with a lump sum payment and features monthly payments covering 75% of accrued interest, with 25% deferred to the end of the term. At loan maturity or property sale, borrowers make a balloon payment covering the original principal, deferred interest, and any applicable shared appreciation.

Suitable For?

This loan may benefit:

• Homeowners with substantial equity who meet credit and income guidelines
• Borrowers with a FICO score of 680+ and acceptable debt-to-income ratios
• Individuals seeking cash flow flexibility through interest-only payments
• Homeowners interested in remodeling and wanting to preserve added value via Capital Improvement Adjustments
• Those prepared to manage a balloon payment after 10 years or upon home sale

Types of Loans/Products

 Unison offers one core product: the Equity Sharing Home Loan, which is a second-lien mortgage featuring:

• 10-year, fixed, interest-only loan structure
• Partially deferred interest (75% monthly, 25% deferred)
• Fixed Shared Appreciation Percentage (typically 1.5x the percentage borrowed)
• Balloon payment due at term-end
• No penalties for early repayment

Additional Product Features Include:

• Capital Improvement Adjustment: After at least 3 years of the agreement, Eligible improvements made during the agreement can reduce owed appreciation if submitted with documentation and appraisal
• Deferred Maintenance Adjustment: Applied if home value is reduced due to lack of upkeep
• Shared Appreciation Cap: Ensures repayment stays within legal state interest limits

The Application Process

1. Initial Application: Complete a short online form
2. Consultation: A Mortgage Loan Officer contacts the applicant
3. Education: Borrowers receive guidance on shared appreciation and loan terms
4. Appraisal: A third-party, licensed appraiser determines the starting home value
5. Loan Issuance: Funds are provided as a lump sum, and the loan is recorded as a second mortgage

Required documents typically include proof of income, mortgage statements, identity verification, and homeownership details.

Rates and Terms

Unison offers below-market, fixed interest rates on their second mortgage product, with repayment structured over 10 years as follows:

• Monthly interest-only payments (75% of accrued interest)
• 25% deferred interest, compounded and paid at term end
• Balloon payment includes: principal + deferred interest + shared appreciation
• Shared appreciation is capped according to state interest laws
• Current interest and APR details are published on Unison’s official platforms

Summary

Unison’s Equity Sharing Home Loan introduces a flexible equity access model that blends a debt structure with shared appreciation. With manageable interest-only monthly payments, prepayment flexibility, and safeguards for both borrowers and Unison, the product provides structured equity financing for homeowners with sufficient credit and income qualifications. The Capital Improvement Adjustment feature adds further value protection for those enhancing their homes through remodeling.

Unison FAQ

Q: Does Unison own part of my home?

A: No. You retain full ownership. Unison simply holds a second mortgage and shares in the appreciation value.

Q: Can I pay the loan off early?

A: Yes. You can repay the loan in full—including shared appreciation—at any time without penalty.

Q: What happens if I make major renovations?

A: If the improvements materially increase your home’s value, after 3 years and with before/after photos, you can apply for the Capital Improvement Adjustment, where Unison may reduce the appreciation it shares in.

Q: What if I don’t maintain the home?

A: A Deferred Maintenance Adjustment may be applied if property neglect leads to reduced value, increasing your final repayment amount.

Q: How is the ending home value determined?

A: Either through an arm’s length sale or an independent third-party appraisal. This affects how much appreciation you will share with Unison.

Physical Address

4 Embarcadero Center, Suite 710

San Francisco, CA 94111

Disclaimer:

AI was used in the generation of this content, along with human verification.