Unison Launches Innovative Equity Sharing Home Loan to Convert Home Equity Into Cash

Rhea-AI Summary

Unison has launched the innovative Equity Sharing Home Loan, allowing homeowners to access cash at below-market rates without selling assets or increasing debt. This new loan category combines the benefits of home loans and equity sharing agreements, offering interest-only, below-market monthly payments. Global investment firm Carlyle (NASDAQ: CG) has agreed to purchase up to $300 million of these loans.

The product aims to unlock the $32 trillion in U.S. home equity, especially for homeowners reluctant to refinance their low-interest first mortgages. It offers a fixed below-market interest rate for accessing home equity while allowing homeowners to benefit from potential home price appreciation. This versatile solution can be used for home renovations, debt consolidation, or securing financial futures.

Positive

• Launch of innovative Equity Sharing Home Loan product
• Carlyle (CG) agrees to purchase up to $300 million of equity sharing home loans
• Allows homeowners to access cash at below-market rates without selling assets or increasing debt
• Offers fixed below-market interest rates for accessing home equity
• Potential to tap into $32 trillion U.S. home equity market

Negative

• None.

New Home Loan Category Supported by New Carlyle Investment Offers Interest-Only, Below-Market Monthly Payments to Fund Personal Goals Without Selling Assets or Increasing Debts

SAN FRANCISCO, Sept. 17, 2024 /PRNewswire/ -- Unison, the pioneer of equity sharing agreements, today announced the launch of the Unison Equity Sharing Home Loan, which enables homeowners to receive cash today at below-market rates. 

Unison launches new Equity Sharing Home Loan that enables homeowners to receive cash today at below-market rates.

Today, the company also announced that global investment firm Carlyle (NASDAQ: CG) has entered into an agreement to purchase up to $300 million of equity sharing home loans from Unison as part of the Unison Equity Sharing Home Loan launch.

U.S. homeowners have almost $32 trillion in home equity, but most aren't refinancing their current low-interest first mortgages, which results in their biggest asset being inaccessible as homes continue to appreciate.

The innovative Unison Equity Sharing Home Loan combines the benefits of home loans and home equity sharing agreements into a unique mortgage solution that allows homeowners to manage personal financial goals by converting home equity into cash with low monthly payments. This new financial product also introduces potential home price appreciation to investors in the mortgage asset category.

The Unison Equity Sharing Home Loan offers homeowners a fixed below-market interest rate for accessing a portion of their home equity, while also allowing them to make use of the appreciation potential of their home. Homeowners lucky enough to have a low-interest first mortgage can maintain their favorable rates, and access capital immediately, with minimal impact to monthly cash flow.

"Whether homeowners want to renovate their homes, consolidate high-interest debt, or secure their financial future, Unison's Equity Sharing Home Loan offers a versatile and customizable solution to suit their individual needs and aspirations," said Ryan Downs, President of Unison. "With lower monthly payments, made possible by shared home appreciation, homeowners can confidently pursue their financial goals with peace of mind."

About the Unison Equity Sharing Home Loan

• Lower Monthly Payments: An interest-only loan, part of the cost is offset by sharing a portion of the home's future appreciation, as well as partially-deferred interest.
• Eligibility Criteria: We welcome homeowners with a FICO score of 680 and above, a maximum combined loan to value ratio of 70%, and a debt-to-income ratio not exceeding 40%.
• Early Repayment, No Penalty: Borrowers can repay the loan early without penalty, which includes paying back the original loan amount, any deferred interest, and the agreed-upon share of appreciation.
• Better Credit, Better Terms: Homeowners with higher FICO scores may receive more favorable loan terms.
• Remodeling Benefit: Homeowners who make improvements--beyond that of regular maintenance--are eligible, after 3 years, to request a credit for the added value, which reduces the shared appreciation component.

Unison vs. Other Loan Offers
Through the Unison Equity Sharing Home Loan, Unison designed an innovative and new financing option offering homeowners lower rates and monthly payments than provided by traditional equity financing products. Its unique structure combines a below-market rate home loan and a share of the property value future appreciation.

Availability
The Unison Equity Sharing Home Loan is available today. Find out if you are eligible and obtain a free estimate with no obligation by visiting www.unison.com/homeloan.

About Unison:
Based in San Francisco and Omaha, Unison is pioneering a smarter, better way to own your home. Until now, the only way to harvest hard-earned equity was by selling your home, or taking on enormous additional debt. Through Unison equity sharing agreements and equity sharing home loans, we help homeowners access their equity in a new and innovative way with low or no monthly payments. We are an investment management company with over $1.8 billion in assets under management, and we furnish investors with the opportunity to access the returns associated with home price appreciation, minus the overhead of home ownership. Our equity sharing agreements have empowered 12,000 households to pursue financial wellness, and we're proud to continue to enhance home affordability, reduce debt, and deliver a less risky way for homeowners, investors, and society to think about that important asset - the home. For additional information, visit www.unison.com and www.unisonim.com.

* Data gathered on July 1, 2024

All registered trademarks and product identifiers belong to their respective corporate entities. Any other trademarks or product names referenced here are also owned exclusively by their relevant companies.

Media Contact:
Gary Bird
FortyThree, Inc.
831.888.9011
unison@43pr.com

 

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SOURCE Unison

FAQ

What is Unison's new Equity Sharing Home Loan?

Unison's Equity Sharing Home Loan is a new financial product that allows homeowners to convert home equity into cash with low monthly payments at below-market rates, without selling assets or increasing debt.

How much has Carlyle (CG) agreed to invest in Unison's new home loan product?

Carlyle (NASDAQ: CG) has entered into an agreement to purchase up to $300 million of equity sharing home loans from Unison as part of the Unison Equity Sharing Home Loan launch.

What are the main benefits of Unison's Equity Sharing Home Loan?

The main benefits include below-market interest rates, interest-only payments, ability to maintain existing low-interest first mortgages, and the potential to benefit from home price appreciation while accessing home equity.

How much home equity is currently inaccessible to U.S. homeowners according to Unison?

According to Unison, U.S. homeowners have almost $32 trillion in home equity that is largely inaccessible due to reluctance to refinance current low-interest first mortgages.