Underscoring the demand for other home financing options, Unison Home Ownership Investors, a company that financially assists both homebuyers and owners, recently announced a Series B raise of $40 million from investors.
Led by F-Prime Capital, along with Citi Ventures and Royal Bank of Canada, the $40 million raise has been allocated to “fuel growth in new and existing markets, build brand awareness, expand business operations, acquire new talent and further advance its technology platform,” according to a press release.
Unison’s two programs will benefit from the funds raised. The HomeOwner program allows current homeowners to tap into their home equity without borrowing. Of HomeOwner customers, 26.5% are over the age of 60, Unison’s Corporate Communications Director Michael Micheletti told RMD. Their other program, the HomeBuyer program, allows prospective home purchasers to “double to quadruple” a down payment to make purchasing a house more attainable.
Unison HomeOwner is currently available in 22 states, as well as Washington, D.C.
According to the company’s website, Unison weathers any home losses or gains with you when you sell your home during the HomeOwner program.
“In some cases we provide up to 20% of the current market value of your home. You make no monthly payments to us. Instead we hope to earn a return on our investment by sharing in the appreciation when you sell your home – up to 30 years in the future,” the website states.
The HomeBuyer program also allows consumers to use the money from Unison for up to 30 years without interest or monthly payments, according to the release.
Arvind Purushotham, the managing director and co-head of venture investing at Citi Ventures, said he is excited to join Unison in its mission of providing homeowners and buyers with financial solutions.
“As housing affordability continues to decrease, especially in urban areas, Unison brings a new financial solution for home ownership that benefits consumers, lenders and institutional investors,” Purushotham said in a statement.
Written by Maggie Callahan