One of the defining features of an Equity Sharing Agreement is that Unison participates in the change in your home’s value.
The Investor Percentage
When you receive your Initial Payment, Unison is assigned an Investor Percentage. This determines the portion of the change in value Unison shares in when the agreement ends.
Unison secures that Investor Percentage through a recorded Memorandum of Agreement and Security Instrument at closing. Similarly to how a contractor can use a lien to secure payment for major home improvements, this structure ensures the shared-appreciation arrangement survives for both parties.
Importantly, Unison bears real downside risk and can lose most or all of its investment if home values decline significantly after the initial restriction period.
For primary residences, the Investor Percentage is typically calculated at 4x. In simple terms:
If you unlock 10% of your home’s value today, Unison’s Investor Percentage would typically be 40%.*
(*Secondary and investment properties may use a different multiple.)
What Happens When the Agreement Ends?
There are three possible market outcomes:
It’s important to note that during the first three years (five years for some older agreements), Unison generally shares in gains, but not in losses. If the agreement ends during this Restriction Period and the home has declined in value, the Ending Agreed Value is set at a minimum of the Original Appraised Property Value.
There is also an Equity Appreciation Limit, which caps Unison’s maximum return in the early years to balance that restriction period. Once the Restriction Period passes, Unison shares proportionally in any loss — reducing your repayment obligation and providing genuine risk-sharing on depreciation. However, if you choose to buy out of the agreement at any time, Unison does not share in losses.
And don’t forget: throughout the life of the agreement, you keep all the equity you build by paying down your mortgage. That equity is always yours, in all scenarios.
Disclaimer
This content is sponsored by Unison Agreement Corp. and is provided for informational and educational purposes only. It does not constitute financial, legal, tax, investment, or lending advice, nor is it a solicitation or offer.
The Unison Equity Sharing Agreement is not a traditional loan. It involves no monthly payments to Unison and no interest charges. In return, Unison shares in a portion of any future change (up or down) in your home’s value when the agreement ends (upon sale, refinance, buyout, or maturity). A Memorandum of Agreement and lien interest is recorded against your property, which may affect future refinancing or transactions. An origination fee and standard third-party closing costs apply.
Availability is limited to participating states only and is subject to eligibility requirements, credit review, income verification, and underwriting approval. Terms, fees, and conditions are subject to change. Home values can rise or fall, and there is no guarantee of any specific financial outcome. Tax consequences may apply.
Unison Agreement Corp. does not provide financial, tax, or legal advice. You should carefully review the full Equity Sharing Agreement documents and consult with your own qualified financial advisor, attorney, and tax professional to determine whether this product is appropriate for your individual situation.
For complete terms, current state availability, fees, risks, and eligibility, please visit https://www.unison.com or contact a Unison representative directly.