Unison Equity Sharing Home Loan Review [2025]

3.8 _/5

Equity Sharing Home LoanView Rates

• Access up to $400,000 in cash
• Below-market interest rates for second mortgages
• Fixed rates of 5.43% APR
• Interest-only payments starting at $313 on a $100,000 loan
• No prepayment penalties
• Deferred interest payments help keep monthly payments low

• Only available in Arizona, Colorado, Florida, Oregon, and Utah
• Shared appreciation model requires you to give up a portion of your home’s future value growth
• Deferred interest accrues and must be paid at the end of the loan term or upon early payout

Founded in 2004, Unison provides homeowners with innovative ways to access their home equity, primarily through its new equity sharing home loan. This product offers below-market interest rates on a second mortgage, featuring fixed, interest-only payments and deferred interest, allowing homeowners to manage their finances with lower monthly costs.

Unlike traditional loans, the equity sharing home loan combines manageable payments with a shared appreciation model, aligning Unison’s interests with the homeowner’s. It’s ideal for those looking for flexibility and reduced upfront financial strain while tapping into their home’s equity. Note that Unison also advertises a home equity sharing agreement, but as of September 2024, it isn’t accepting new applications for the product.

About Unison’s equity sharing home loan

Unison designed its equity sharing home loan for homeowners looking to access their home equity while keeping monthly payments as low as possible. This product combines a below-market, fixed interest rate with deferred interest payments, offering a unique financial solution that avoids the high monthly costs of traditional loans.

Instead of only repaying the principal and interest, homeowners also share a portion of their home’s future appreciation with Unison, aligning the interests of both parties.

Terms

• Loan amounts: Depending on their home’s value and credit profile, homeowners can access between $30,000 and $400,000.
• Interest rates: Unison offers variable interest rates, which are often lower than standard market rates.
• Monthly payments: Interest-only payments, starting at $429 on a $100,000 loan, are often half what you’d end up paying monthly for other types of second mortgages. This helps homeowners manage their cash flow.
• Repayment options: At the end of the 10-year term or upon early payout, homeowners repay the deferred interest and Unison’s share of the home’s appreciation. No prepayment penalties apply, allowing flexibility if you want to settle the loan early.
• Unique features: This loan structure combines the benefits of traditional home loans with Unison’s shared appreciation model, resulting in lower monthly payments and no upfront repayment of deferred interest until the end of the loan.

Eligibility requirements

Here’s how to qualify for the Unison equity sharing home loan:

Properties	Single-family homes, townhouses, and condominiums
Credit score	Min. 680 FICO
Max CLTV	70%
Max loan amount allowed	35% of property value
Max DTI	40%
States	Only available in Arizona, Colorado, Florida, Oregon, and Utah
Other factors	Independent appraisal required to determine the home’s value before final approval

The equity sharing home loan is only available as a second or third mortgage that is subordinate to your primary first mortgage loan.

How do you repay the Unison equity sharing home loan?

You’ll repay the loan at the end of the 10-year term or sooner through selling the home, refinancing, or repaying with other funds. When repaid, homeowners settle the principal, deferred interest, and Unison’s share of the home’s appreciation.

Deferred interest accrues over the loan term but does not need to be paid monthly, giving you the flexibility to manage your finances with low, predictable payments until maturity.

Fees and conditions

Be prepared for these costs associated with the equity sharing home loan:

• Origination fee: 3% origination fee (deducted from loan proceeds at closing)
• Third-party costs: Homeowners are responsible for appraisal, title, and inspection fees.
• Deferred interest: While you’ll make interest-only payments each month, a portion of the interest is deferred and compounded, adding to the balance due at the loan’s end.
• Shared appreciation: Unison typically takes 1.5 times the percentage of its investment as its share of the home’s appreciation, adding a unique cost component compared to traditional loans.

About Unison’s home equity sharing agreement

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Tip

❗Unison isn’t accepting new applications for its home equity sharing agreement as of September 2024. Check out these alternatives instead.

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Unison’s equity sharing agreement allowed homeowners to access their home equity without taking on traditional debt. Instead of monthly payments or accruing interest, Unison provided cash upfront in exchange for a share of the home’s future appreciation or depreciation.

This agreement aligned Unison’s interests with the homeowner: Both parties shared in the gains or losses of the home’s value over time. It was a unique option for those who need liquidity without adding monthly financial burdens.

Terms

• Loan amounts: Homeowners could access between $30,000 and $500,000 through the equity sharing agreement, depending on the value of their home and the amount of equity they have.
• Term length: The agreement lasted up to 30 years, allowing flexibility for homeowners to use the funds as needed without pressure to repay early.
• Repayment options: At the end of the term, or when the homeowner decided to sell, refinance, or buy out the agreement, Unison received its share based on the home’s appreciated (or depreciated) value.
• Unique features: The agreement didn’t require monthly payments or interest charges. Unison shared in the appreciation and depreciation of the home’s value, making it a true partnership between the homeowner and Unison.

Does Unison have any control over my home or its condition?

As an investor, Unison shares in the future value of the home, but it doesn’t take ownership or control over the property, and it has no occupancy rights. You control the property and retain the benefits of homeownership.

Do certain home projects require permission from Unison?

Most home projects don’t require specific permission from Unison. However, if you plan to make significant changes that could substantially affect the value of your home, it may be wise to consult with Unison to understand how those changes might affect your agreement.

Can you renovate the home with funds from Unison or personal funds?

You can use the funds from Unison or your personal funds to renovate your home. Unison’s investment is tied to the home’s value, so renovations that increase the home’s value could affect the amount you owe at the end of the term.

Are there any inspections during the term?

Unison doesn’t conduct inspections during the term of the agreement. However, you are responsible for any costs related to home inspection as part of the closing process.

Pros and cons of Unison home equity options

Before making any financial decisions, we recommend considering all the pros and cons.

Pros

• Lower monthly payments, below-market interest rates

  The equity sharing home loan offers lower, interest-only payments and deferred interest, making it an attractive option for those seeking reduced monthly costs.

• Access to significant cash upfront

  You may gain access to substantial cash amounts, providing flexibility for home renovations, debt reduction, or other financial needs.

• No prepayment penalties

  The home loan allows you to pay off the loan early without incurring extra fees, providing greater flexibility.

Cons

• Restrictions on renting

  You can’t rent out your home during the term, limiting potential income opportunities Only owner-occupied properties are eligible. 

• Third-party fees

  You’ll cover third-party costs, including appraisal and settlement fees, which can add to the overall expenses of entering into an agreement with Unison.

• Origination and transaction fees

  A 3% origination fee applies to the equity sharing home loan.

• Deferred interest

  A portion of the interest is deferred and compounded until the end of the equity sharing home loan term, which could increase the overall repayment amount.

Alternatives to Unison

When considering alternatives to Unison, you have a variety of options to access your home equity. Traditional choices, such as home equity loans and lines of credit (HELOCs), provide cash by leveraging your home as collateral, offering competitive interest rates with fixed or variable payment terms.

These products are widely available from banks, credit unions, and online lenders, making them a popular option for those who want to maintain full ownership of their home without sharing future appreciation.

For those looking for equity-sharing models similar to Unison’s approach, several competitors offer agreements where you receive cash upfront in exchange for a share of your home’s future value.

Each company has unique terms, eligibility requirements, and cost structures, which can vary based on your home’s location, your financial profile, and the amount of equity you want to access. Comparing these alternatives can help you find the best fit for your needs, whether you prefer traditional loan structures or innovative equity-sharing agreements.

Unison customer reviews

Reviews from reputable sources such as the Better Business Bureau (BBB) and Trustpilot can offer a balanced view of Unison’s services.

Source	Overall rating	Number of reviews
BBB	1.64/5	25
Trustpilot	3.8/5	200

Common themes from BBB reviews include being declined by Unison, disagreements with appraisals, and slow communication. In the last year, Unison has closed nine complaints with the BBB.

Trustpilot rates Unison’s program as “Great.” Many customers note the quick and easy application and approval process. 

Does Unison have a customer service team?

Unison’s customer service team can assist homeowners with inquiries or issues they may face. Here are the ways to contact Unison:

• Email: [email protected] 
• Phone: Call 1-855-864-7664 from 9 a.m. to 5 p.m. Central with questions about the equity sharing home loan
• Mailing addresses:
  • 650 California St. Suite 1800, San Francisco, CA 94108
  • 1299 Farnam St. Suite 940, Omaha, NE 68102

How to apply for a Unison equity sharing loan

As of September 2024, Unison isn’t accepting new applications for its home equity sharing agreement, but applying for a Unison equity sharing home loan is a straightforward process. Here’s a step-by-step guide:

1. Prequalify and get an estimate: Click “Estimate my rate,” type in your address, answer several questions about the property, and provide your name and email to get an estimate of how much home equity you can unlock. Unison will guide you through the process without any financial obligation or impact on your credit score.

2. Apply online: If you’re satisfied with the estimate, fill out the application.
3. Appraise your home: Unison will set up an appraisal to determine your home’s value. Remember, Unison requires the home to be your primary residence and has other eligibility factors.
4. Unlock your equity: Decide how much cash you want to access, and Unison will work to release the funds as fast as possible.

Resources to consider

If Unison’s home equity product isn’t right for you, consider these resources:

• List of home equity companies: A comprehensive list of providers to help you explore options for tapping your home equity, including taking out a home equity loan or HELOC, or exploring other home equity sharing agreement providers.
• Unison vs. Unlock comparison: Detailed comparison between Unison and Unlock, highlighting their unique features.
• Unison competitors and alternatives: An in-depth analysis of different equity sharing agreements, including Unison’s competitors.
• Unison vs. Point: An insightful comparison between Unison and another home equity sharing agreement company, Point, to help you make an informed decision.