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.) 

Pros and Cons of Unison Home Equity 

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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: 4/1/24. (Reviews are typically updated monthly.)

Rating last updated: 2/2/24. (Ratings are typically updated once per quarter.)

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.