A buying program called home-ownership investors can assist buyers purchase a larger home than they could otherwise afford or, in some cases, help an individual qualify for a property he or she may not afford otherwise.
Home-ownership investors assist with down payments
On the front end, the process simply gives home buyers money towards a down payment – money that doesn’t have to be paid back either though monthly payments or even interest as long as the purchaser lives in the house. The extra money can help a buyer upgrade to a bigger property or pay less per month on the mortgage considering that the total loan amount will be less.
However, home-ownership investors find the money exactly that – their funds invested for potential return. In exchange for loaning the money, they expect to be paid back at the time the purchaser eventually sells the property, and in addition they expect a share of any equity increase in the property.
While the program may help buyers upfront, long-term owners, upon sale, will find that they have less money toward retirement as well as other life goals once they pay back the initial loan and the percent of equity they agreed upon.
One of the first companies to invest in homeowners is FirstREX, which recently changed its name to Unison. Its flagship program is known as Unison Home Buyer. It says the program is now “available to more first-time, millennial and move-up buyers throughout the country.”
Unison provides up to half of the down payment required on a home as a loan without any monthly payments or interest. The company says it hopes to earn a return on its investment by sharing in the appreciation as soon as the homeowner eventually sells, but if the home’s value decreases, Unison will also share in the loss.
To learn more about the fact that home-ownership investor program works, visit Unison’s website.
