Unison HomeBuyer Program 2026: How It Works and What MLOs Need to Know for Origination

The Unison HomeBuyer program is an equity sharing product where Unison co-invests in a home purchase in exchange for a share of the home's future appreciation or depreciation. The buyer receives a contribution toward the purchase, which reduces the cash needed at closing or allows a larger down payment to eliminate PMI.

How the Unison Contribution Works

• ✦Unison provides a contribution toward the purchase price, typically up to a set percentage of the home's value
• ✦No monthly payments on the Unison contribution: repayment occurs at sale, refinance, or at end of contract term
• ✦At settlement, Unison receives their original contribution plus or minus a share of the appreciation or depreciation since origination
• ✦The buyer retains the remaining equity including their own down payment portion and any principal reduction
• ✦Contract terms vary; buyers must review the specific agreement for their transaction

First Mortgage Interaction

The Unison interest is recorded against the property, typically as a subordinate lien or covenant. For a conventional first mortgage to close alongside a Unison contribution, the first mortgage lender must consent to the Unison lien being recorded. Unison has worked with specific lenders and program guidelines; MLOs should verify that the lender on the first mortgage transaction will allow the Unison arrangement before proceeding. Refinancing later requires Unison to subordinate to the new first mortgage.

Down Payment Sourcing Documentation

• ✦The Unison contribution must be documented as an equity investment, not a gift or loan
• ✦Gift letter treatment does not apply: Unison is a co-investor with a recorded interest in the property
• ✦Lender must review the Unison agreement to confirm it meets their program requirements for acceptable co-investment structures
• ✦Some agency products have specific approved shared equity programs; confirm the Unison program qualifies for the loan type being originated

Borrower Considerations

• ✦If the home appreciates significantly, the cost of the Unison arrangement increases in dollar terms
• ✦The buyer should model the total settlement cost at various appreciation scenarios before signing the agreement
• ✦Unison shares in depreciation as well, which limits the buyer's downside but also reduces the full loss protection compared to owning outright with no co-investor
• ✦Buyers who plan to own the home long-term at high appreciation rates pay more in appreciation share than those who sell in a flat or declining market