If you're looking for a way to fund renovations or home improvement projects, Unison’s Equity Sharing Agreement may be just the solution for you! This innovative alternative to traditional borrowing features:
- No monthly payments and no interest
- Capital Improvement Adjustment: The value you add by making eligible home renovations or improvements isn't shared
- Repayment when you sell, refinance, or after 30 years that includes a portion of your home’s appreciation on top of the original sum
Imagine an alternative to a second mortgage that works with your budget, not against it. Instead of incurring interest, taking on debt, and making steep monthly payments, you get to enjoy life in your home and close out the agreement further down the road, when you sell or when your finances look different.
The Equity Sharing Agreement 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 eligible renovations or home improvement projects is not shared with Unison at the end of the agreement.
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 Agreement.