If you're looking for a way to fund renovations or home improvement projects, Unison’s Equity Sharing Home Loan may be just the solution for you! This innovative ten-year second mortgage features:
Low monthly payments: Partially-deferred interest empowers homeowners with increased cash flow and financial flexibility.
No prepayment penalties: Ensures the homeowner maintains agency over the timeline of the loan.
Capped returns: Predictable shared appreciation structure for peace of mind.
Imagine a second mortgage that works with your budget, not against it. This unique 10-year loan offers:
Smaller Monthly Payments: Because some of the interest is deferred, you get extra breathing room in your monthly expenses. Think of it as more cash in your pocket!
Pay it Off Early, No Problem! No penalties if you decide to pay the loan off faster than planned. It's your home, and you should be in control.
Predictable Returns: You'll know exactly how the shared appreciation works, giving you peace of mind and no surprises. It's a clear, straightforward way to access your home's equity.
But the Equity Sharing Home Loan also has a benefit specifically meant for those who use their funds to undertake home improvement projects: the Capital Improvement Adjustment. We believe that if you make improvements to your home that boost its value (beyond regular maintenance), you should reap all the benefits. So, this adjustment ensures that any value added to your home via renovations or home improvement projects is not shared with Unison at the end of the loan.
How it works:
Work with licensed contractors and fully document the project, including “Before” and “After” photos.
Request the adjustment at least 45 days before you end the loan.
An independent, third-party appraiser performs an appraisal and determines the extent to which your renovations increased the value of the property.
Unison's shared appreciation calculation accounts for your home improvements. We'll subtract the value added by your eligible renovations from the property's final appraisal, ensuring you only share in the appreciation of the original home value. This means you won't owe us a portion of the value you personally added through improvements.
A few things to keep in mind:
The adjustment is only available after three years into your loan term.
The adjustment is based on the value added, not the cost of the improvements.
Some improvement projects add more value than others; for example, finishing a basement vs. adding a swimming pool.
Over time, some improvements may lose some value.
If you’re considering renovations or improvement projects and will want to request a Capital Improvement Adjustment, we suggest that you get in touch with our Home Partnership Team while you’re still in the planning stages. They can answer more specific questions that you may have and ensure that you reap the full benefits of this feature of the Equity Sharing Home Loan.
About the Author
Unison
We're the pioneers of equity sharing, offering innovative ways for you to gain access to the equity in your home. For more than a decade, we have helped over 12,000 homeowners to pursue their financial goals, from home renovations to debt consolidation, retirement savings, and more.
