Unison Review 2024 (Pros and Cons) Access Home Equity

Imagine this: 

You’ve been living in the same house for 12 years. The roof leaks, and the kitchen could use some updating. 

You know these home improvement projects would raise the value of your home, but you don’t have that kind of cash lying around. 

At your neighborhood’s annual BBQ block party, one of your neighbors mentions how they used Unison to fund their new inground pool.

Intrigued?

You should be! 

Homeowners’ equity increased by 4.3% just last year. This means Unison could be the answer you’ve been looking for!

In this Unison review, I’ll share how this equity-sharing company can help you access home equity easily.

What is Unison?

Unison is an equity-sharing company that allows homeowners to convert some of their home equity to cash in exchange for a percentage of the home’s future appreciation value.  

Typically, Unison’s share ends up being around four times the percentage initially invested. 

Unison lets homeowners convert 17.5% of their home equity to cash or up to $500,000. Unison utilizes an independent appraisal to determine the value of each home. 

The best part is they don’t charge interest, and there are no monthly payments!

And you don’t have to repay your “loan” for the next 30 years or until you sell your home, whichever comes first.

Now you might be wondering, “But what if the value of my home decreases?”

Since Unison is an investor in your home, unlike a typical lender, it shares the risk. This means Unison takes a loss if your home goes down in value.

Note: Unison charges a 3.9% transaction fee, and you’ll have to pay for the appraisal and settlement costs yourself. This is something to factor in if you decide to use Unison.

You’ll also want to keep in mind that Unison doesn’t operate in all U.S. states. Currently, Unison is available in these 30 locations: 

1. Arizona
2. California
3. Colorado 
4. Delaware
5. Florida
6. Illinois
7. Indiana
8. Kansas
9. Kentucky
10. Massachusetts
11. Michigan
12. Minnesota
13. Missouri
14. Nebraska
15. Nevada
16. New Jersey
17. New Mexico
18. New York
19. North Carolina
20. Ohio
21. Oregon
22. Pennsylvania
23. Rhode Island
24. South Carolina
25. Tennessee
26. Utah
27. Virginia
28. Washington
29. Wisconsin
30. Washington D.C.

How Does Unison Work?

Working with Unison to access home equity is simple.

The first step is to get an estimate. This determines how much equity you’ll be able to access. During this step, Unison will conduct a soft credit pull, so your credit score won’t be affected.

Second, you will fill out Unison’s online application. This only takes a few minutes. 

The next step is to get your home appraised. Unison uses an independent appraisal to determine how much your home is worth. 

Lastly, Unison will let you know what your home’s value is and how much equity you’ll likely be able to access. 

Once you reach an agreement and sign the official documents, Unison will send you funding as quickly as possible. 

The entire process can take around a month. This timeline varies based on how long the appraisal takes to complete. 

Also, Unison will reduce your home’s appraised value by 5% to establish your home’s “Original Agreed Value.” Unison uses the Original Agreed Value to gauge how much your home appreciated or depreciated over time. 

When it comes to paying Unison back, you have two options:

• Sell your home
• Buy out of your agreement 

Homeowners can buy out of their agreement at any time. 

Buying out of the agreement is simple. Your house will be appraised, and similar to the appreciation when selling your home, if your appraisal increases, so will your payment. The only difference is if your appraisal decreases, you still have to pay the original amount to Unison.

Unison Vs. Home Equity Loan

Unison and other home equity-sharing companies are alternatives to home equity loans. 

With equity sharing, there’s no need to worry about monthly payments or hefty interest rates.

Instead, Unison only gets money when you sell your home or after the 30-year term is over.

Unison receives money based on how your property appreciates or depreciates. 

A home equity loan is like a personal loan, but you’re using your home as collateral. You’re required to pay your lender back plus interest, regardless if the value of your property goes up or down.

Also, with a home equity loan, if you fail to make payments, then you could risk losing your home. 

Unison Vs. Home Equity Line of Credit (HELOC)

Another alternative to Unison is a home equity line of credit (HELOC). This is similar to a home equity loan since they both use your home as collateral, but a HELOC is a line of credit, not a lump sum. 

With a HELOC, you have access to your home’s equity, but you only borrow what you want. 

HELOCs tend to offer more flexibility. They are widely available and relatively easy to qualify for. 

However, if you don’t want to make monthly payments or leave yourself exposed in the event your home loses value, an equity-sharing company like Unison may be a better option.

Is Unison Legit?

Unison is a legit and credible financial institution. It’s been accredited by the Better Business Bureau (BBB) since 2013 and has an A+ rating. 

Unison also has positive reviews from hundreds of customers on Trustpilot, with an average rating of 3.9. 

Is Unison Safe?

Unison is a safe company. 

Also, they take customer privacy and security very seriously. Unison conforms with standard data privacy regulations to protect and safeguard all the personal information provided during the signup process. 

Pros and Cons of Unison

Pros	Cons
No monthly payments	Unison reduces your home’s appraised value by 5%
Unison carries the same risk you do	It’s not available in every U.S. state
There are zero limits to what you can spend your money on	You have to pay a 3.9% transaction fee
No interest	You can’t rent out your property during the term

Unison Reviews

When I was doing research for this Unison review, I read through countless customer comments.

The reviews seemed to vary. Many customers love working with Unison, while others weren’t so impressed.

For example, a Florida homeowner, Gary, posted a Unison review mentioning that Unison provided a professional experience, allowing him and his wife to renovate their home. 

Another member who left a Unison review shared how they liked how easy the entire process was. A Unison agent walked this customer through everything they needed to know. 

It’s important to note this member recommended that you do your homework before opting for Unison because it might not be for everyone.

However, not every Unison review is positive. 

For example, a Reddit user who was trying to consolidate credit card debt posted a Unison review saying that you never really know if it’s a good or bad deal until you sell your home. 

Homeowners must rely on real estate market trends.

Is Unison Worth It?

So, is Unison worth it?

Many Americans build most of their wealth through the appreciation of their home. So when you’re opting for a financial strategy that could eat into your home appreciation, you want to be careful. 

However, if you have a ton of high-interest debt and you’re struggling to pay it off, you could use Unison to settle this debt, and you can buy out Unison on your own time.

Or, if you’re thinking about investing in real estate, you could use Unison to access the equity in your home. You can then put this equity towards buying another home and pay Unison back with your rental income.

Unison is an excellent option for homeowners looking for alternative ways to access home equity. 

Commonly Asked Questions About Unison

What are Alternatives to Unison?

Hometap and Unlock are two popular equity-sharing alternatives to Unison. Hometap allows you to access up to $600,000 for a 10-year term. Unlock offers a maximum of $500,000 for 10 years.

What are the Disadvantages of Unison?

The major disadvantage of Unison is that it takes a large portion of the appreciation of your home. And since most Americans use their home to build wealth through appreciation, this is something to consider. Making the wrong decision can drastically reduce your net worth.

What Percentage Does Unison Take?

Unison typically takes four times the original investment percentage of your home’s appreciation. For example, if Unison gave you 10% of your home’s value in cash, they would receive 40% of your home’s appreciation later on. 

What Percentage of Equity Does Unison Take?

In most cases, Unison’s shares end up being four times the original investment. So, if you agreed to give Unison 10%, then they usually end up with 40% of the appreciation. 

Where is Unison Available?

Unison is currently available in 30 states, including: 

1. Arizona
2. California
3. Colorado 
4. Delaware
5. Florida
6. Illinois
7. Indiana
8. Kansas
9. Kentucky
10. Massachusetts
11. Michigan
12. Minnesota
13. Missouri
14. Nebraska
15. Nevada
16. New Jersey
17. New Mexico
18. New York
19. North Carolina
20. Ohio
21. Oregon
22. Pennsylvania
23. Rhode Island
24. South Carolina
25. Tennessee
26. Utah
27. Virginia
28. Washington
29. Wisconsin
30. Washington D.C.