USA

Lending Times reports on the business model created by Unison to improve the affordability of home ownership in the United States; the firm has developed two main products, a HomeOwner and HomeBuyer product, that are based on an investment model rather than a lending model; as a real estate investor the firm provides capital for borrowers and shares in the gain or loss of the real estate property's value; Unison and other innovative real estate businesses participated in a panel at LendIt USA 2017 titled, "The New Era of Buying & Selling a House" sharing further insight on how fintech innovation is evolving in residential real estate.  Source

Coming up with a 20% down payment on a home can be quite a challenge, San Francisco based Unison is looking to offer help to these prospective buyers; a Unison deal typically involves the homebuyer putting down 10%, Unison putting down 10% and the remaining 80% would be borrowed; Unison charges a 2.5% fee and shares in 35% of future appreciation or depreciation; this allows for the homebuyers to keep payments lower and save on private mortgage insurance (PMI), which is required if the loan to value exceeds 80%; "We are partnering with the homeowners by investing alongside them in the house," Unison Co-CEO Jim Riccitelli told the San Francisco Chronicle; the Unison offering looks to replace local bay area assistance programs offered to lower income household and first time buyers. Source