Anybody heard of unison homeowner / homebuyer funding?

[Vinay H.]

I received a flyer from unison. They claim they will help fund 10% of downpayment. This is not a loan but a co-investment. They charge no interest but they share in 35% of the proceeds of any appreciation for home buying.

Their example - if purchase price is 500k, they provide up to 50k for downpayment. If the sales price is 600k, their proceed is 50k + 35% of the 100k appreciation. If the sales price is 400k, they take a 35% share of the loss.

Any thoughts? Any questions I should ask.

Pros I can see - a) No interest payments - improves cash flow

b) In case of home value loss, they share in loss

c) This does not show up as debt? in my income to debt ratio?

Cons:

a) what is the catch?

b) what if I want to opt out or sell for a price that is lower than what they appraise for ...?

"

We provide down payment funds that you can use for up to 30 years1 with no interest charges or monthly payments. In exchange we share in the change in value of your home – up or down – when you decide to sell2. Our share of the change in value is typically 35%. If your home’s value increases, we both profit as partners. If your home’s value decreases, we also typically take a portion of the loss. It is a true partnership – we win and lose together."