Unison Reviews

Unison does not charge interest, so you don’t have to worry directly about mortgage rates.

Your Unison agreement is good for 30 years, at which point you will need to sell or buy back your portion from Unison. At any time, you are able to sell your home, but if it is within the first five years of the agreement, Unison will not share in any loss in value your home might have. After five years of the agreement, Unison will share the loss of value, and you are able to sell or buy back your portion at any time.

Unison’s application process is completely online and is not as demanding as going through the mortgage process. When you submit the application, the company will perform a soft pull on your credit to see if you qualify. Unison will never do a hard inquiry on your credit; instead, it continues doing soft inquiries throughout your agreement to ensure you meet credit standards.

Once your application is approved, you will receive an independent appraisal. Based on this appraisal, Unison will then apply a 5% risk adjustment. This means if your home appraises for $400,000, Unison will adjust it to $380,000 as the original agreed value.

You still own your home, but Unison will place a lien on your property. You will not be able to legally sell it without complying with Unison’s agreement. Additionally, Unison can dictate certain terms; for example, in most cases, you will not be able to turn your home into a rental property while Unison still has the lien.

Carol, a ConsumerAffairs reviewer from Charleston, South Carolina, had this to say about their experience with Unison: "Can’t say enough good things about how responsive, kind, patient and knowledgeable my customer service rep was. … Now, my life, home and credit score have dramatically improved. I’m out of debt, my badly deteriorating home is good as new, and my daughter’s wedding paid for!"

Unison specializes in one product – home equity sharing agreements. Depending on your credit score and how much equity you have available, you can cash in on up to 15% of your equity. In exchange, you allow Unison to have a portion of your proceeds on the future value of your home – which could be a win or loss for them depending on market conditions.

Refinancing

Home equity sharing agreements are an alternative to refinancing. Unlike refinancing, entering an ESA does not change your interest rate or your monthly payment. When you refinance your home, you can see your monthly payment go up or down, depending on your new interest rate and how much equity you convert to cash.

Applicants need a FICO score of at least 620. Your credit score will determine your loan-to-value (LTV) requirement. Applicants with excellent credit can have a maximum LTV ratio of 70%.

Unison primarily invests in owner-occupied homes, meaning you live in your home at least 180 days out of the year and are not gone from your home for more than 60 consecutive days. Unison may sometimes invest in rental properties, but the terms may differ; you should contact Unison for more details. It is also recommended that you plan to stay in your home at least five years after the agreement, since Unison will not share in any loss of your home value if you sell your home within the first five years of the agreement. You can buy out your agreement at any time, but Unison will not share in any loss.

Signing up for a Unison agreement when you have more house than you can afford will not fix your financial situation.

Upfront, Unison allows borrowers to access 15% of their equity without any monthly fees or interest. However, the process is not without fees. Expect to pay a 3.9% transaction fee based on the investment amount you receive, appraisal costs and settlement costs. Appraisal costs generally range from $650 to $1,050, and settlement costs range from $700 to $1,750. If you end up not using Unison, you will not be charged any fees.

When considering if a home equity sharing agreement is the right choice for you, compare it with the closing costs and APR of a cash-out refinance, home equity loan or home equity line of credit (HELOC).