Unison
Review Counsel is owned and operated by Mutual of Omaha Mortgage.
About Unison
Unison Synopsis
Review Summary: Unison is an equity-sharing company that co-invests in residential properties. Homeowners can receive up to 15% 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 sharing agreement 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 or territories in which Unison operates. (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
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Instant address pre-approval
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Investment opportunities for new homes
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Available in 29 states and Washington D.C. (more than any other HEI company)
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In business 18 years (longest in the industry)
Cons
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Ideal to stay in the home for at least five years after the investment is made
Unison Reviews
| Consumer Review Platform | Rating |
|---|---|
| Better Business Bureau (BBB) | A+ Rating; 1.62/5 Stars with 26 Reviews |
| Supermoney | 2.14/5 Stars with 14 Reviews |
| Trustpilot | 3.8/5 Stars with 200 Reviews |
| Yelp | 2.2/5 Stars with 58 Reviews |
Unison Full Review
Overview
Unison was the first company to enter the home equity investment space.
Unison calls its home equity sharing agreement the Unison HomeOwner program.
With an equity-sharing agreement through Unison, homeowners can receive up to 15% of their home equity in cash. Since the funds are an investment, not a loan, it does not add to the homeowners’ debt, requires monthly payments, or include interest.
Homeowners settle the investment when they sell their homes or after 30 years. Unison shares in a percentage of the home’s value, up or down, at the time of the sale. Homeowners can choose to prematurely end their agreement at any time by Special Termination, but please note Unison will not share in any losses in that case.
“Homeowners can buy out their Unison agreement at any time, but Unison will not share in any losses. If a homeowner sells their home within the first 3-5 years, Unison will also not share in any losses,” Unison told Review Counsel.
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: 70% maximum
- **Live in the home
Single-family homes, townhouses, and condominiums may all qualify for an equity-sharing agreement.
* As of Nov. 21, 2022, the required loan-to-value maximum dropped from 75% to 70%.
**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 an equity-sharing agreement with Unison:
- Check eligibility and get pre-approved. Step one is making sure the home is eligible for an equity-sharing agreement. According to Unison, this process takes seconds.
- Submit your application. If your home is 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 wired to your account.
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.
To determine the home’s starting value, Unison takes the current market value that is determined by the appraiser and applies a 5.0% risk adjustment to it.
Unison HomeOwner Rates and Fees
These are the rates and fees homeowners pay to obtain an investment from Unison:
- 3.9% transaction fee at closing
- Inspection/Appraisal fees ($650 to $1,050)
- 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 the lack of a 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 December 2022, Unison has invested in 10,000 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 29 states and the District of Columbia:
- 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
Reviews last updated: 10/14/24. (Reviews are typically updated monthly.)
Rating last updated: 8/5/24. (Ratings are typically updated once per quarter.)
Our Methodology
We independently identify Home Equity Investment companies. Home Equity Investment companies are evaluated based on five factors that we believe are important for consumers: years in business, number of products offered, customer service availability, state licensing footprint, and Better Business Bureau (BBB) Ratings. Please find a full description of our rating system here.
This information is intended to be general and educational in nature and should not be construed as financial advice. Consult your financial advisor before implementing financial strategies for your retirement.
Address: 650 California Street San Francisco, CA 94108
Reviews for Unison
2.0 out of 5 stars (based on 4 reviews)
Most binary option broker tend to be unregulated
I invested online to a scam broker company which I got stuck having challenges of making withdrawal of my investment profit , i later got intouch with a cyber security agent called Gavin Ray I sent him all he needed to place a Recovery and I got a call by the bank confirming the payment in my account,quick satisfaction on every successful withdrawals with him, on gmail: gavinray78 AT gmail com
October 2, 2024
recover lost funds
This broker is a scam if only I had read about them before going into trade with them. 😡 they keep telling me to deposit more of my funds.. After I read about them and concluded and decided to reach out to Mrs. HARPER after I read so many reviews on how She has helped a lot of victims. Well, I am glad Mrs. HARPER was able to help me recover my money. You can get in touch with HER on their company mail
Email: harperjamesplatform @ gmail com
September 21, 2023
Don’t do it!!
If I could give a – negative score I would.. it’s real simple.. if you want to keep yourself out of quicksand then stay away from Unison .. for a small investment on their part, you’ll soon loose all your equity… they make it almost impossible to refinance or buy them out.. as they increasingly pillage all your equity.
August 4, 2023
Great company and process
It took a while to truly understand what they were offering but for me it made total sense once I understood all of the mechanics. I would highly recommend Unison. The process was super fast compared to what I expected.
Verified
| July 2, 2019