Remember: you decide when the option contract expires. Unison can only exercise our option when you make the decision to buy us early, sell your home, reach the maximum term of 30 years or if you materially default your mortgage. Learn more about the different ways in which our agreement ends later in the End Your HomeOwner Agreement section. The program is an optional investment, not a loan. This means that there are no interest or monthly payments. After 30 years, if the property is sold or if the buyer decides to buy Unison, they re bourse the initial investment of Unisons and any common appreciation. Note: The net return for Unison at the end of our agreement is the same as simplified, non-option mathematics, which shows access to 10% of a home that, valued at $500,000 to $600,000, gives Unison a net payment of $90,000 upon sale. Unison`s alternative credit model and unique program offer attractive benefits for homeowners and homebuyers, but they also have drawbacks. As with any loan program, read the fine print and understand the impact of the program on you before you commit. After three years, you can ask for what is called a “special termination” and terminate the contract without the house being sold. When a special termination is requested, an assessment is made by third parties to determine the current value of the home. On that date, the initial amount received must be refunded.
Any profit Unison would have received if the house had been sold at the time of the examination must also be paid to Unison. In this situation, Unison will not take into account a loss due to a loss of value of the house. The maximum duration of the Unison HomeOwner Agreement is 30 years. However, the agreement usually ends when the owner sells the property. The Unison HomeOwner agreement is supposed to be a long-term deal. If the owner sells the property within the first three years and there is a loss due to fair market conditions, Unison will not share that loss. Double your down payment! Bring yourself into the house you really want with Unison HomeBuyer. This innovative fund-sharing program can double a home buyer`s down payment, regardless of income.
However, this may be an appropriate choice for home buyers who want to reduce their monthly payment by using additional down payment funds to put their foot in the door of the house, and are willing to pay more back. Unison proposes to increase a home buyer`s down payment by offering 5% to 15% down payment assistance in exchange for sharing the future valuation of the property. It can help convert a 10% down payment into a 20% down payment, which removes the PK requirement and reduces the buyer`s monthly payment to the bank.