Unison
Last update:
Overview
Unison is a company that has two main arms – consumer and institutional. It is a San Francisco-based firm that was created in 2004.
For consumers, Unison provides the likes of home equity loans to homeowners. This sees homeowners being able to get a portion of their home equity in the form of cash. They will not have to pay any sort of interest or monthly payments as a result of the approach that Unison takes. You can get up to 17.5% of the home value or up to $500,000 in cash.
Homeowners will get cash in return for providing a stake in the future change in the home value. Your agreement with Unison Home Equity Loan ends after 30 years or when you sell your home. When the home is sold, the homeowner pays Unison the original co-investment, plus or minus a share of the change in the value of the home. This review will look at all aspects of the home equity loan offering at Unison.
| Mortgage Type | Home Equity |
| Amount | Up to 17.5% of home value or $500,000 |
| Repayment Terms | Payback original co-investment, plus or minus a share of the change in the value of the home when sold or after 30 years |
| APR | Varies by deal |
| Minimum Credit Score | 680 |
| Lender Type | Direct |
Unison Home Equity Loan: Pros
- No interest, extra debt, or monthly payments
- Fast pre-qualification process
- No minimum income requirement
- Unison shares the loss if the home value depreciates
- Consumers can use the funds for any purpose
Unison Home Equity Loan: Cons
- Only available in 28 states
- Can lose out if the property appreciates a lot
- You need to buy Unison out once 30 years is up
Application Process
There are four main steps involved with using Unison to unlock the equity that you have built up in your home. You are given the ability to get cash without having to pay any monthly payments. This is because Unison is making an investment in your home, with the funds coming for institutional investors who are looking to make long-term investments in homes in the United States. Here is a look at the step-by-step application process:
Step 1: Pre-Qualification
In order to see if Unison is going to be a good fit for your needs, you will start with the pre-qualification process. You will simply provide some basic details about your home, such as its location, mortgage size, and how much money you have paid off the mortgage to date. This process takes a matter of seconds and will not impact your credit score.
Step 2: Complete the Application Process
If you have gotten pre-approval and you want to proceed with including home equity through Unison, then you can submit an official application. You can do this online or by ringing Unison over the phone.
Step 3: Get an Appraisal
As soon as you get approval for your application, you will then be contacted by Unison in order to have an appraisal done on your home.
Step 4: Sign the Offer Letter
As soon as your application has been approved and the appraisal has been completed, you will be ready to finish out the application process and get your funds. You will need to sign the offer letter and the closing package. You can then get access to the funds from Unison Home Equity Loan in as little as three days.
Terms & Requirements
The type of home equity funding that Unison provides is unlike your typical home equity lenders as you are not going to be making regular repayments or charged interest. Instead, a different approach is taken whereby people get a stake in your home in return for them providing you with cash.
Requirements
Unison currently does not have any income requirements in place. You do need to be at least 18 years old, have a debt-to-income ratio of no more than 50%, have at least 20% equity in the home, use the home as your primary residence, have a credit score of at least 680, and the property has a value of at least $30,000.
Terms
You will be able to get up to 17.5% of your home value or up to $500,000 from Unison.
Repayment Terms
You will not have to make monthly repayments like you would with regular types of loans. Instead, you will be giving Unison a stake in your property. When you sell your home or after 30 years or after you decide to buy out Unison’s stake, you pay Unison the original co-investment, plus or minus a share of the change in the value of the home. There will be a 3.9% transaction fee charged from the cash proceeds at closing.
Privacy & Security
Unison has developed a great reputation over the years of being a respectable private lender. It has been around since 2003 and has invested billions of dollars on behalf of institutional investors over the years. Unison will not sell your personal information and it makes sure to protect the confidential and personal information of all of its customers. Currently, Unison has an A+ rating from the Better Business Bureau.
Customer Support
The Unison website is very clear and transparent, explaining everything you need to know about the process of getting a home equity loan. If you want to get in touch with a member of the Unison customer support team, you can ring them by phone.
There are separate phone numbers for existing customers and for applicants. The phone lines will be open from Monday to Friday between 9am and 5am PST. There is also an email form on the Unison website that you can use to send correspondence.
Final Thoughts
Unison offers a type of home equity offering that is not really seen with any other lenders. It allows you to avoid taking on debt and having to make monthly repayments. Instead, you will be getting cash in exchange for a stake in your home. Unison is certainly a great alternative for people to consider if they are looking to unlock some home equity and the homeowner is planning to stay put for the long run.
Address
650 California St, San Francisco, CA 94108, USA
Disclaimer: TBA